By Rohit Kothare on Apr 11, 2019 5:09:04 PM
The more experience you have with buying real estate, the more you'll learn about the complicated process. In all the excitement of going house hunting, whether it's for aresale flat or a new apartment, first time home buyers tend to make mistakes. Owing to this they might wind up in an unwise investment.
If you're a first-time home buyer, skip the buyer's remorse by learning about some of the most common mistakes and how to avoid them.
7 mistakes first time home buyers make that you can avoid
1. Ignoring Trends & Current Market Scenario
Have you read the market right? Even though there is so much information available online, you should still seek the advice of an experienced professional early on in the home-buying process.
The majority of buyers have their hearts set on a particular neighbourhood or city. But why limit your search area? Word-of-mouth recommendations, advice by seniors in your family, etc. may help you but you need to understand that your lifestyle and choices may vary from others and so you should take a proactive approach and do independent research.
2. Not Getting Pre-Approved for a Home Loan
The last thing you want to do is fall in love with a home you can’t afford! Before you start looking at properties, go to lenders/banks and get pre-approved for a home loan.
The difference between a loan pre-approval and pre-qualification is that a pre-qualification is often issued based on information that is provided by the borrower.
Once that's done you can focus your attention on houses you can afford, and avoid the disappointment of finding your dream home and then learning you can’t own it.
Related Post - What is the procedure for applying for a Home Loan?
3. Underestimating or Forgetting Additional Costs Involved
Always ensure you have a rough budget in mind which you have documented properly. Estimates tend to shoot up when you are actually buying.
Also we have to remember the fact that when you buy a home, you pay more than just the cost of the house. Some of the additional costs include:
- home insurance
- moving costs
- inspection reports
- stamp duty
Related Post - How to Buy Home Insurance?
4. Skipping the Home Inspection
You have to remember that the home’s intrinsic value can be defined clearly after undergoing an inspection. The information may either highlight the home’s positive features or point out the possible deficiencies or defects that will require additional repair or maintenance that would add up to the home’s value.
The results of the recommendations and inspections may help the buyers of homes make crucial decisions.
5. Making Decisions based on Emotion
Buying a home is a major life milestone and a roller-coaster filled with ups and down. There’s nothing wrong with being emotional, however, don’t let it blind you from the reality that it’s a transaction.
During the home buying process, it’s easy to go down that path of emotion but don’t let yourself get swept up in the excitement of home buying before taking a serious look at whether or not it’s a good deal.
6. Not checking out the Neighbourhood
One of the best ways to get a feel for an area is to spend some time there. Although you’ll likely visit when viewing a property, schedule in some time to explore the area.
By doing this, you’ll see what amenities are available locally, and hopefully, get a gut feeling as to whether or not the area is right for you.
7. Not Checking the Credibility of the Builder
Making a real estate investment is not the best time to try your luck with a gamble. While numerous unknown builders might attract you with lower prices, you can never be sure of their quality of construction or if the project will be completed as promised and within the timeline, they mentioned and majorly if they have the required approvals.
This is why you should always choose a reputed and trustworthy builder to ensure that the process goes smoothly.
Related Post - Which are the renowned Real Estate developers of Pune?
Buying a house is a stressful and nerve-racking time and these handy tips and tricks will help you make a well-informed decision when purchasing your next property. It’s an unpredictable process, but the more you know about the process, the easier it is to avoid serious mistakes.