Purchasing your own home is one of the greatest investments that you make. It is not only your place of stay, but also an important asset for future. The enjoyment and excitement of purchasing the first property is so huge that people commit some silly mistakes in the process. Though the errors do not come to notice in the beginning, but they become obvious on the long run.
Below mentioned are common mistakes that first time property buyers make and some suggestions of avoiding them:
- Not being able to gauge the budget and affordability – Most of the people who are planning to buy their own home seem to be overwhelmed with the idea. In the excitement they get ready to go over-budget, not understanding the consequences of the same later. Therefore it is recommended to make a budget of all the big and small expenses including the yearly premiums that you need to pay for your investments. See if you can manage the expense of your home after meeting the other requirements. With proper assessment, managing finances for the house can become difficult later.
- Ignoring personal inspection of the property – Most first time buyers ignore this very important step of inspecting the property personally. The real estate industry has many traps and a newbie in the industry might not be able to gauge the trap. He might be told that a particular property is a wonderful one but it might turn out to be just the opposite. You might need to carry out many repair works in the property after getting in. To avoid such hassles, go for personal inspection and check every small detail on your own so that you can choose from the best property.
- Overlooking additional expenses related to owning a property – When you stayed in a rented apartment, the only expense that you needed to bear was the rent of the apartment. But now, that you are a property owner you have to bear more liabilities and expenses along with the EMI of the new home. You will need to pay for home insurance, property tax, home repairs and maintenance costs with other expenses. Make sure that you are prepared for the expenses as they are recurring ones. New home buyers often overlook these and fall into trouble later not being able to balance the costs.
- Being carried away by cosmetic beauty of a property – Property sellers are very smart and they know the tricks of doing up a property in such a manner that they look extremely attractive to the owner. And first time property buyers get attracted to the same. It is interesting to note that many minor cosmetic changes are done in the property for enhancing its look and appeal to property buyer. A small cosmetic upgradation might cost $2000.00, while that will increase the costing of the property by 20 times. Look for properties to which the owner can add value than ones that are already decked up.
- Not hiring a real estate agent – Usually first time home buyers want to do the whole thing on their own – from selecting the property, to inspection to finalizing the deal. But a newbie in the field can be misled by unscrupulous people in the sector. Hiring services of a reputed and reliable real estate agent is the best solution to the problem as they are best people to understand your requirements and can help to find the most suitable property as per your needs and which fits well into your budget.