Buying a new home is stressful, especially if you’re buying it for the first time. Whether a new house or an old one, affordable properties are hard to come by. However, any first time home buyer can get a loan quickly under a new government initiative.
The First Home Loan Deposit Scheme allows you to get a loan to buy your dream home. Though in all the excitement of new house hunting, it is easy to ignore the pitfalls. To steer clear of them, it’s best to educate yourself and learn a thing or two about house hunting.
Here is a list of top mistakes made by home buyers – that you should avoid by all means.
Not Doing Enough Research
Before anything, always ensure that you understand your finances and needs. Once you have clarity about it, start researching the property market. If you don’t do your homework correctly, you won’t understand what a good deal is.
Try and make a list of areas you’re interested in and keep an eye on the prices of properties for a few months. Assessing the neighborhood is also crucial before buying the house. Take note of the crime rate to know if it’s safe to live.
Going Beyond Your Budget
A home that doesn’t fit the budget always looks more appealing to the homebuyer. It may or may not be accurate for many reasons. But, going out of your way to buy a home is the worst decision anyone can make.
It can derail your future finances and create a bigger fuss than you can handle. It’s inherent nature to crave for more than one can afford. As a new homebuyer, you should avoid the temptation and be sensible in such a situation.
Remember, if you can’t afford it, move on and look for other viable options.
Get Driven by Emotions
It is easy to get driven by your emotions when buying a new home. Mainly when the mortgage loans are low, being a first time home buyer, you should remember not to get emotionally attached to a property for trivial reasons.
Also, when you find your ideal home, it’s unnecessary to share your enthusiasm with the real estate agent quickly. Agents are trained to read buyers’ emotions. Once they know you love the place, they will power up their negotiation skills.
A smart home buyer knows plenty of options available in the market. Unless you don’t find a better place, don’t let your emotions drive your decision.
Not Doing Pre-purchase Inspection
When you find your dream home, please don’t jump on it before checking the building or property properly. New home buyers mostly forget to do building and pest inspections. And they spend many months getting rid of such pre-existing problems.
Make a point to check the roof, walls, and floor for mold and excessive moisture. Poor drainage systems and leakages can cause more significant problems after some time.
Not Negotiating Correctly
No one is a born negotiator. But you can learn the art of negotiation by talking to different agents and researching before the final offer. Many new companies excessively rely on the expertise of their real estate agencies.
Take a proactive approach and do your independent research. It would be best if you always tried to negotiate while buying. You will never get the best deal if you don’t ask for it.
If you keep your head calm and avoid making these common mistakes, you can find the home of your dreams. As a first time home buyer, finding a new home may take longer, but it will be worth it. Consider all discussed mistakes, and decide once you’re sure.