- #1 - Relying solely on the internet
- #2 - Getting too emotionally attached to one house
- #3 - Not being prepared for homeownership
- #4 - Not saving enough
- #5 - Not checking your credit score
You can still have regrets about buying the wrong pair of shoes, the wrong television or the wrong smartphone, but buying the wrong home is a mistake that is not easily erasable.
It can have a negative impact on your lifestyle and your finances for years to come.
Buying a home is intimidating, but there is no reason to be overwhelmed when you have a competent real estate agent at your side who knows the area.
If you work with them, you should be able to avoid the 5 most common mistakes novice home buyers make:
#1 – Relying solely on the internet
We use the internet in our everyday lives, especially when we want to purchase something, but don’t let the internet be your only source of information.
Even though you might see homes that you like in the area where you want to buy, you will never be able to see their true value from behind a screen.
A good real estate agent will be able to show you properties that haven’t even been advertised yet and they should be able to find you a home that suits your needs.
Don’t let the internet force you into making hasty decisions.
#2 – Getting too emotionally attached to one house
You might have already seen the house that you love: beautiful architecture, ocean views, huge garden – the works!
But what about the cracks in the walls, the mold underneath the counters or the leaking roof?
Don’t become blinded by the ‘perfect’ house and overlook its mistakes.
This is the most expensive purchase that you will ever make and it is important that you keep an open mind.
Your real estate agent might just have another house in mind that is better value for money and one that can be a better choice in the long run.
#3 – Not being prepared for homeownership
Many first-time home buyers are attracted to the idea that owning a home will give them freedom, but there are many things that you should prepare yourself for.
Homeownership comes with a lot of new responsibilities that you might not have been used to before like maintenance, the provision of security, payment of homeowner’s insurance and payment of municipal rates and taxes.
You need to be prepared for all of these aspects, mentally and financially, to ensure that you don’t fall short after a year of living on your own.
#4 – Not saving enough
What people don’t tell you is that there are many hidden costs when it comes to buying a house and many buyers only save up enough for the deposit.
Then they have to scramble in order to ensure that they have enough money to pay the bond registration fees, the legal fees and the transfer costs.
On top of that, experts suggest that you should save your moving costs as well as an amount equivalent to two to three months’ home repayments as an emergency fund. This will prevent that you are caught in a sticky situation!
#5 – Not checking your credit score
Before you start house hunting, you should check your credit score.
Do this at least three months in advance to ensure that there are no black marks or errors and that you can address them if they seem suspicious or get them fixed if they are there for a reason.
If the banks view you as bad credit risk, your application for a home loan might be turned down or you might be charged at a higher interest rate.
Don’t let these mistakes keep you from reaching your dream and buying your dream home!