You have finally saved up enough money for a down payment and are very excited at the idea of owning your first home. You can decorate your house however you want and do not have to worry about increasing rent prices every year. However, if you have never purchased property before, it is easy to make mistakes that end up costing you a lot more money. Here are five common first-time home buyer mistakes you should not make:
Not Getting the Home Inspected
Even if the house you want to buy looks perfect, it is vital to get it inspected by a professional beforehand. According to Investopedia, an inspector should check for safety issues, major defects and minor defects and which items in the house require repairs or replacement. Some of the most important areas for a home inspector to look at include the exterior walls, roof, plumbing system, foundation and electrical system. If the home ends up needing a lot of repair work, you need to determine if it is still worth buying or not.
Underestimating the Costs of Owning a Home
When you buy a home, you do not just have to worrying about paying for a mortgage and home insurance each month. You also have to pay for property taxes and the costs of home repairs. For example, if your furnace breaks down in the middle of the winter, will you have enough money to get it fixed? Before you sign all the papers, it is important to sit down and decide if you can realistically afford all of the unexpected costs of owning a home.
Not Working With a Real Estate Agent
Although you do not have to have a real estate agent to buy a home, it is recommended. If you are like most people, you probably do not have a lot of time to devote to searching for the right home. If you tell a real estate agent your price range and what amenities you want in your home, he or she will do all the work for you. A good real estate agent will help you tackle complicated paperwork and negotiate on the price. An experienced real estate agent may also know about homes that are not listed. Hiring a reputable real estate agent will simplify the home buying process and make the experience a lot more pleasurable.
Being Too Critical
When you are looking for houses, try not to nit-pick too much on problems that can be fixed easily. If you are too critical on minor details, you can miss out on a really great house. For example, if the only thing you do not like about the house is the color of the carpet, you should still think about buying it. You can always replace the carpet at a later date.
Not Considering Resale Value
If you are like many first-time home buyers, you will likely want to buy a bigger home when your family grows. There are several different factors that determine the resale value of a home, including the neighborhood, condition of the house and school districts. For example, if the house you are looking at is in a crime ridden neighborhood, it will probably be more difficult to sell down the road. Before you decide to buy a home, sit down and figure out how difficult it will be to sell it in the future.
Buying your first home can be quite tricky, so it is important to take your time to avoid mistakes. If you are ever not sure about something during the home buying process, you should not hesitate to contact local realty services.