Buying a house, as mentioned so many times already, can be both exciting and infuriating at the same time. For first time house buyers, the fact that you’ve saved up a lot of money just to get your own place must be a source of pride not just for you, but for your family and friends as well. Buying a house is not a very simple decision; your decisions will definitely affect your everyday life in this new home you’ve purchased. Therefore, if you want the whole experience to be full of happy memories from start to finish, then you might want to avoid these top beginner’s mistakes when buying a home:
1. Not researching on the neighborhood where the house is located: Let’s face it; whether it’s buying a new house or simply renting a condo or an apartment, we all want to live in a neighborhood where it’s safe and secure. Although most of the major cities in the Philippines are not that scary, there will always be parts of a certain city where it’s not always a good choice to buy a house. Unfortunately, most beginners are too excited to think about this very crucial decision that they immediately buy a house and then regret it by the time they move in within the neighborhood.
So before you even think of looking for a house that’s for sale, do some research first on the neighborhood where you’d want to live in. Of course, the type of neighborhood where you’ll want to live will definitely affect your budget for buying a house too. A high class subdivision will most likely attract people who can pay for an expensive townhouse or mansion compared to a house that is situated far away from the city.
2. Being Too Picky with the Location: When buying things that we want, we’d always take into consideration our needs and wants. The same can be said with real estate. However, being overly picky about the location of a house for sale will never do you any good. Continue being too picky about a house’s location and you’ll run of options later on faster. When putting up a list on the things that you’d like to see or have when choosing a house to buy, always make sure that the list is realistic.
And always be ready to make some compromises. There are a lot of people who can afford to make small sacrifices after buying their own homes because of a number of important reasons, like choosing a cheaper place due to lack of budget and others.
3. Neglecting to Inspect the New Home Before Buying It: The most fatal flaw that any person can commit while on the course of buying his/her own home would be forgetting to inspect the house for sale before and after paying for it. Buying a house is no joke and it is also not cheap either. Therefore, you’d want to make sure that the house you are buying is in good condition.
Make a list of the things and areas that you need to inspect in the house you’re buying and check the house a week or two before paying for the unit itself. In this way, the old owners of the house will be obligated to repair or replace any part of the house that needs replacement or repair. You will definitely save a lot of money doing this.
4. Not consulting with a real estate expert: When in doubt with the terms and conditions of buying a new house, having a real estate expert by your side could really mean the difference between peace of mind and financial burden. A real estate expert can definitely represent you while negotiating for the price of the property that you want to buy. These guys can also protect you from people using cheap or dirty tricks into making you buy the house in question.
5. Not considering the type of mortgage: We know it can sometimes be a pain, but considering the type of mortgage for the house that you’re planning on buying is very important. If you decide to ignore it, not only it is going to affect your credit rating (if you’re getting the house on a bank loan), but it will add more expenses in the future when the time to pay your mortgage arrives. So before you decide buying the house, consider the kind of mortgage depending on the amount you wish to pay each month.
6. Failing to calculate present and future expenses: Most people would say that buying a house is definitely a bit cheaper and more time efficient compared to having to build your own home from scratch. This certainly is a bit true; it’s the present and future expenses that you have to consider first though. Think about your present situation; are you currently having a hard time paying your current power and water bills? Is your credit rating with banks at an all time low? Do you think you have enough money to spare for the utilities once you’ve moved in into your new home?
If you haven’t asked these very important questions to yourself, then please do so first.
7. Buy without comparing market prices: Buying a house is pretty much like buying fish in the market; you’d want to get the best value for the lowest price possible. Therefore, if you went ahead and brought a house because you think it’s the best deal presented to you first, then you may have just lost an opportunity to save more money by looking for other options first. The real estate market is a huge market, so don’t be in a rush to buy the first house you see in a catalog! There will always be better offers.
8. Being impulsive and over-emotional: We understand the joys and the emotions swirling inside your heart when shopping for your future home. Always remember that the moment you pay for a house, there are no returns and no exchanges. When buying a house, be calm, cool, and collected. Think about the needs that your house has to cover for you. Don’t buy a house that is too big if you aren’t going to use all that huge space; don’t decide living in a attic although it’s lovely if you are scared of heights.
9. Decide without thinking ahead: Paying for the mortgage of your new home can be a lifetime of responsibility, so if you can’t handle such a task, then you’re better off renting an apartment or condo. This is why it is important to consider your lifestyle and your financial status before deciding to buy a new home.
If you really want to be sure, why not take our quiz?
So the next time you’re off to buy yourself a home, then always remember this humble checklist to save yourself from future heart aches and wallet woes!