It is pertinent that greenhorn property buyers understand how to avoid first-time house buying mistakes and turn the tide to their advantage. When you take into account that purchasing a property is the single largest expense that most individuals may incur during the lifetime, the consequences of making mistakes during the purchase process can simply be disastrous.
Mistake A: You Forgot to Think about the Property Taxes
Being able to afford to buy a house does not necessarily mean you can afford the property taxes which are levied on it. If you own a home in the United States, you are expected to pay property taxes. You should take these taxes very seriously as you need to continue paying them even after your mortgage has been paid off. If you do not, your property can be foreclosed.
Mistake B: You Exceeded Your Initial Budget
It is a wise move to set a budget before buying your house. You need to be prepared to face the hidden costs that comes with home ownership. When establishing your budget, these things need to be factored into the equation. Once these tasks are completed, you should stick to it.
Mistake C: You Did Not Inspect the Home
Making a down payment on a house typically costs tens of thousands of dollars. In most cases, one may be making monthly payments for as long as three decades. It would be risky to spend that kind of money without conducting a thorough inspection of the property you are about to buy. Hence, hire a professional inspector so that they can help you identify structural problems etc. You should not pay more than what the house is actually worth.
Mistake D: You Chose to Work with an Inexperienced Realtor
Cheap realtor charges might sway you into choosing the wrong personnel to work with. You should choose your realtors by factoring in their track record and experience. A good realtor usually has your best interests in mind. It is not always about making a quick sale.
Mistake E: You Did Not Look Out for Hidden Costs
When you purchase a home, it is almost certain that you will pay more than the property’s advertised selling price. Extra closing costs such as costs for repairs, new furniture, taxes, home inspection fees, and the cost of moving in the new home are often overlooked. These costs can dramatically and quickly increase the overall cost of your purchase. If you do not factor these costs into the main equation, you may find yourself underwater.
If you are buying real estate for the very first time, it is imperative that you get your own real estate representation. A savvy property buyer knows what to look out for, including costs, timing, and more. It is safer to work with a reputable real estate brokerage firm, where agents are readily available to provide you with accurate information pertaining to the latest real estate listings in the locality you are targeting.