Top 10 mistakes of first home buyers
Top 10 Mistakes Homebuyers Make and how to avoid them!
Buying a new home is a really exciting time but sadly, many of us rush out and start looking and can get caught up in the excitement of a new home without thinking rationally about this HUGE decision. Here are a few things you should keep in mind:
1. Not knowing exactly what you want: It is critical to understand what it is you NEED and WANT in your next home. Remember, the needs are things that are non-negotiable. Wants are things that you would like to have in your new home but that you can live without. Taking the time to create a list of needs and wants will save you time – you should only look at homes that meet all of your NEED criteria.
2. Thinking about your present situation: Many buyers fail to envisage how their circumstances might change in the future. You are typically in your home for a long time so think about how your life might look in 5, 10, 15 or 20 years and think how this house will fit those needs.
3. Not shopping in your budget: It is really easy to think that you can stretch your budget and get caught up in having to buy your “dream home”. You should find out exactly what you can borrow before you start looking.
4. Not being pre-approved: having pre-approval shows the seller that you are serious and that you are ready to buy. Remember, knowing how much you can borrow is not pre-approval. If you are pre-approved, this can give you more leverage when negotiating.
5. Not knowing the market: do some homework before you even step in to a home open. This research will give you a feel for to market, current prices and many other things. All of this gives you knowledge when looking at a home and also the asking price.
6. Not getting the house professionally inspected: You should ALWAYS, ALWAYS get a property inspection done. The report prepared will allow you to make an informed decision about what is wrong with the property and let you negotiate with the seller.
7. Keep your emotions in check! It is so easy to get caught up in the excitement of a new house and not put your rationale, thinking hat on. If you think this might be you, take someone with you who can act as your voice of reason.
8. Understand the property: it is vitally important that you understand all of the details on the property including zoning restrictions, future developments around the property and any covenants on the property.
9. Not acting cautiously when putting in an offer: Putting in an offer on a home should be treated with due care and caution. It is critical that you understand all of the components of the offer and acceptance contract so that there are no nasty surprises down the track.
10. Making a hasty decision: buying a home is a big decision. If you are having second thoughts or cold feet, then be sure to take some time to consider the reasons for this. This house may not be right for you and that niggling feeling can be your clue to stop and think.
These top ten mistakes made by homebuyers are designed to help you make more informed decisions. At FinanceCorp, we are here to help you get in to your dream home. Be sure to chat with us to find out how we can help you make the right decision.