Are you planning to buy a house? While it is an exciting and amazing experience, there are those who find it scary. Here are some of the mistakes you are likely to make as a first time buyer.
- Spending more than you can afford.
You should evaluate yourself and be clear on what you can afford. As a buyer, you not only need to consider the price of the house but also the house bills which may include; future renovations, heating and cooling costs, property taxes and other unforeseen occasional costs.
What to do about it: Evaluate your financial position and ensure you have extra money besides your current fixed costs.
- Lack of research
You not only have to ask a lot of questions about the home as a prospective buyer but also make inquiries about the neighborhood in which it is located. Most people make a mistake of buying a home blindly without doing a thorough research. Do a first-hand research since you are the one who knows exactly what you want. Find out about the neighborhood and acquire an inspection report about the house.
- Choosing to Spend too little
What is your capacity after a few years? Will the home still be able to accommodate you after some time? Is there a chance of outgrowing the home? These are important questions you need to look at before making your purchase. Look at your expectations on a long-term basis and your future plans. Look at probability of outgrowing the house after some short time. It can be a better financial decision to spend more on a house that you are sure you’ll stay much longer.
- Emotional buying
The house may be appealing and seems to be all you wanted but it’s important to consider its comfortability with respect to the location or neighborhood. It could be that the home is close to a busy route yet you have young kids who keep playing up and down outside the compound. If possible, visit the house severally and imagine your family within the location for years. This will help you in making a sound decision.
- Missing closing costs
Before coming up with an affordable price range, you need to take into account closing costs such as the lawyer fees, transfer taxes, realtor’s commission and moving costs. As you prepare your budget, consider the closing costs between the range of 1.5 and 4 percent of the sale price.