What You Should Avoid When Buying a Home!
Everyone fascinates the idea of having their own home which they can call ‘Our Home’. Buying your forever home is one of life’s most thrilling decisions that you can ever make for yourself. However, while all the love, excitement and happiness of having your own home imperative, it still is a huge investment to make. Most importantly, in a really competitive environment, where such emotions could cost you thousands ultimately.
Why Homebuyers End Up Making Mistakes When Buying a Home?
The highest value purchase of your life, why still make a mistake that can cost you your everything? Merely the feeling of having a loss is disturbing or perhaps makes you depressed to the core. Wondering why it happens and how to avoid it? Know that a home isn’t just a home. It is a long-term financial investment that can make or break you eventually.
Many homebuyers don’t have adequate industry knowledge. They just head into the activity without proper guidance and end up signing a contract that doesn’t bring any good for them but continuous financial loss ultimately. From searching for the best deals to assessing the essential paperwork, homebuyers need to evaluate each minor detail effectively and smartly. If you avoid any of the important factors, your project will turn into a financial nightmare just in a jiffy.
What You Should Avoid When Buying that Dream Home, You’ve Got Your Eye On?
Are you thinking to buy your own home? Being aware of the pitfalls when signing a property contract could be worthwhile. It will help you make a sound decision that you will never regret for the rest of your life. Here’s what mistakes you could make and how to avoid them when buying your home.
- Inadequate Knowledge About Housing Market Trends
If you are not taking enough time to understand and recognise the industry trends you may end up making a wrong buying decision. If you really are eager to purchase your own home, then must do your homework efficiently.
You need to understand market trends that may include variances in demand and supply as they can cause fluctuations in the industry. At times, it becomes a buyer market and favours people looking to buy homes. On other occasions, it becomes a seller’s market providing them with an opportunity to sell their property and earn greater returns. Consumer confidence levels, prevailing economic conditions, and interest rates also influence the housing market. So, try to remain updated about current market trends.
- Not Having a Budget
As mentioned above, buying a home or a property is a huge investment and a long-term financial commitment. Taking it further, if you take a loan to buy a home, you will have to pay a monthly mortgage. This might be over and above your current expenses. Hence if you don’t make and define an expected budget there are chances that you may make wrong assumptions regarding what you can afford in future. Therefore, it is a must to make a budget that enlists all expenses and each source of income. It is highly suggested to do your complete paperwork at this stage.
- Not Obtaining a Pre-Approved Loan
There is a trend that usually homebuyers opt to wait until they find a house they want to buy before they think about getting a loan from a credible source. However, on the other hand, property sellers or real estate agents prefer to avoid any time delays. Thus they prioritise investors who already have pre-approved loans.
Therefore, having a pre-approved loan increases the chances that the property seller would definitely consider you first when deciding on buying a house. Remember that, falling in love with a property only to find out that you can’t have it isn’t worth it at all. So do whatever can help you get that dream home – and obtaining a pre-approved loan is one thing among all.
- Abandoning the Value of a Home Inspection
Sellers only want to sell their property out. For this, they only highlight the positive aspects of the property and avoid the negative ones. So don’t ever get into this trap. Always consider engaging property experts in carrying out an effective inspection. Ask them to identify the additional cost or amount that you will need to spend on renovating or repairing the property.
- Neglecting the Associated Costs
Enlisting all the expenses and defining a budget is one of the great strategies when buying a home. However, you cannot neglect to evaluate associating costs with the house. Most of the homebuyers make this mistake thus end up paying huge costs associated with home. A few expenses that you must keep in mind before buying a home include:
- Stamp Duty
- Bank Fees
- Home Insurance
- Inspection Costs
- Ongoing rates and taxes
- Abandon the Resale Value of the House
Many homebuyers while buying a house don’t think of putting it up for sale. However, at some point, you may need to resale it for some solid reasons. So never ignore the resale value of it. Therefore, must evaluate whether:
- If it will be easy to sell this home out in future.
- Will you receive a good return on it or not?
- Trusting Verbal Agreements
Many times there is verbal communication between homebuyers and home sellers that is considered as an agreement to buy property. In the verbal agreement, you cannot expect the seller to remain on his words. A home seller may find another party more profitable and decide to sell the property to them. What will you do in that case? Wise is to think about it before deciding to buy a property. Make sure to secure property agreements in writing to safeguard your interests in the future.
Conclusion
At Home Strikers, we present to you the locations with strong fundamentals for growth. This is based on our extensive research on multiple factors – infrastructure commitment, government spending, projected population growth, demand & supply in the micro-market, private investment commitment by the large players and demographics of the suburb. We manage a diverse portfolio of real estate services to help our clients’ get their dream home that is not only modern and luxurious but also presents a decent return on investment.
“Research is the Key” when it comes to buying your home. You may choose to do it yourself or talk to one of our friendly sales agents to understand what we have to offer.
