Buying a home is a complicated game, that when you get it right, you can own your dream home. However, if it goes wrong it can cost you both in terms of finances and mental well being. The issue with buying a home is the fine print that you have to sift through, legal matters that you just can’t grasp hold of and understanding a market that can only be described as turbulent at the best of times. So to make sure that you get the home of your dreams this year, here are 5 of the most common mistakes that you should really avoid.
1. Misunderstanding the real estate agent
The first and foremost part of real estate agents job is to make the home shopping experience a friendly, informative one. At the end of the day they are there to sell you a house; exactly what they should be doing in their job. The first thing to remember is that agents are in general working for the seller, which should be stated when you meet the agent at a viewing.
The most common mistake made when speaking to real estate agents is becoming clouded by the sales tactics given by the agents. To help you in this situation, there are two things you can have at your disposal; research of sales jargon and your finances up to scratch from the get go. If you have researched sales tactics then you will know exactly what to look out for.
2. Not having all your finances in order
We are all guilty sometimes of overlooking our financial status, but when you go to buy a home you need to know 100% where you finances are up to. This needs to include many separate parts; you will need to know what your checking account is doing – taking into account incoming monies and out goings.
Along with this you will need to know if you can get the loan you need and what finances you will need to decorate or make changes to the property you choose. Understanding the mortgage options that will be available to you is extremely important, as well as ensuring that you are using a licensed mortgage broker like those found on 1300 Home Loan. Use brokers’ expertise to your advantage and ask all questions you need an answer to.
3. Not doing enough research into the types of homes and areas available.
Another common mistake that can cause a lot of issues in the future is not having completed significant research before you sign on the dotted line. This will seem obvious, but it does catch many people out once they come to reselling their home in the future. There are some key areas that you do need to cover within your research which will make sure that damage control is limited. Firstly know the neighborhood that you want to move to: from where the nearest schools are all the way through to whether there will be development in the future. Also, have an understanding of how much work you are willing to do on your ideal home and how much this will cost. Having answers to these should save you from heartache in the future.
4. Buying a house that is tough to resell
Many of us get clouded by love when we are looking for our dream homes. This is not necessarily a bad thing and there does need to be an element of love involved. The issue with only searching for a home based upon your feelings is that you can pick a house that is too difficult to resell. In order to make a fully rounded and informed decision, you need to have some foresight to a time when you may want to sell the property. This will come down to looking closely at the neighborhood and the current market predictions.
5. Not reading all the small print
This is probably the most obvious mistake on here, but it is equally one that gets made over and over again. The small print for each aspect of buying your home is where you will get all the information regarding hidden costs or fees, your legal rights and timings throughout the whole process.
Many people get caught out at the stage and misread the small print or simply don’t read it. This could lead to further financial issues in the future; the small print is there to protect you so make sure you know it inside and out.