How to Avoid Common House-Buying Mistakes

How to Avoid Common House-Buying Mistakes

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Buying a home is an emotional and often overwhelming process since you’re looking for possibly a forever home that matches your dream vision and has an affordable price. However, the risk is great if you let your emotions get the better of you and you fall prey to typical house hunting mistakes. To reach a careful, rational decision, you need to prepare well and avoid the following mistakes.

Ignoring your budget limits

Once you’ve got your heart set on a house, it’s almost impossible to go back. You start dreaming about all the great memories you’ll be making there and if it turns out you can’t afford the place, you’ll break your own heart! To avoid being tempted by the gorgeous houses you can’t afford, start your house hunting at the lower price range and restrict your search to properties that fall within your financial possibilities.

Passing up on mortgage approval

As real-life experiences of many people show, what your bank says you can afford and what you believe you can afford do not always match as well as what you desire and what the bank is willing to lend you.

What you need to do is get pre-approved for a bank loan before you even place an offer on a house. Otherwise, you might be wasting both your and your realtor’s time especially if you sign a contract and then get denied for the loan. The process of pre-approval can also help you determine your financial abilities and limitations for your house-hunting venture.

However, bear in mind that even if you’ve been pre-approved, your loan can fail to happen at the last minute if something alters your credit score such as a car purchase. In that case, you might have to forfeit the deposit you put up when you signed the contract.

Not Using an Agent

If you’re serious about purchasing a home, don’t go house hunting on your own without having an experienced real estate agent on board. Agents generally have both the seller’s and buyer’s best interest in mind, but you might find yourself in a pickle if you start negotiating with a seller’s agent before having your own. Hiring genuine pros can be instrumental in finally getting your slice of homeowner’s paradise at the best possible price with all the amenities you wished for.

Not seeing the bigger picture

While looking for a perfect home, you need to be able to see the bigger picture and look beyond ugly wallpaper or carpets as it may be worth it to endure all that for a while so you can get the house you can afford. If the house checks your boxes in terms of big and important things such as location and size, a few physical and aesthetic imperfections shouldn’t put you off. Some cosmetic work and DIY upgrades can completely transform any space and even add value to your property.

Underestimating the importance of interior design

One of the best things about buying a home is putting your personal stamp on it - painting the walls, buying new furniture, organizing the garden – there are plenty of ways you can introduce your personality to your new abode. However, there are plenty of things consider for everything to goes smoothly design-wise. Going by the teachings of the new bachelor of arts degree in interior design at Raffles Milan, spaces that we design should convey emotions and meaning.

Not considering the neighbourhood

An important part of house hunting and decision-making process is looking past just the residence. You must also consider the neighbourhood you might be moving in. You can’t precisely predict the future of the chosen area, but you can make inquiries into its prospects that can help you avoid unpleasant surprises later.

The recommendation is to ask about future development plans for the area and if there’ll be some major work done such as new buildings or road that might make your street a rush-hour shortcut or transit.

Rushing in or lingering

Making the final decision about buying the home is tricky as you don’t want to either rush in with your offer or linger on and lose your opportunity. It’s hard to balance out the need for a quick decision and the need to make sure it’s the perfect place for you. You should take some time to deliberate, at least a day and a night, but don’t wait too long as someone might beat you to the offer which will cause your both pain and possibly economic consequences.

Not scheduling an inspection

Before you make your final choice, it’s essential you know what you’re buying. Without a professional pre-purchase inspection that will examine the shape of the house, you might end up with a money pit and tons of unexpected work and repairs. Try to put your feelings aside until you get a clear picture of the physical condition of the house. Being sure in your potential investment will help you avoid a grave financial mistake.

Buying a house is a big decision to make but not necessarily the hardest. You only need to be careful of several things: try to control your emotional response so you can make a sound and rational decision, rely on professional help from your agent and be clear about your financial abilities. Also, take your time and be prudent and ultimately, the outcome will be beneficial for both your bank account and your heart.

By Lillian Connors