Buying your first home can be an amazing, but pretty complex and difficult experience. Without solid advice and careful planning, you might end up making mistakes that could cost you time, energy and money. It's normal for first-time buyers to make a mistake or two, but knowing some of the more common ones will help you avoid complications when buying.
Proper financing is important when it comes to home buying. Most of the time, money problems are the culprit of a home-buying mess up. For example, you may think you have enough saved, but you may not be accounting for everything. A recent post from House And Co explains the common mistake of not considering secondary costs when buying a home:
Not knowing all the costs associated with buying a home
So, you’ve got your finance pre-approved, you have saved up for the deposit and now you’re ready to sign the dotted line and make your first home officially yours… right?
Just hold on a second – have you considered ALL the associated costs with buying your first home? Getting your finance sorted and saving for a deposit is just the tip of the iceberg when it comes to the costs involved in buying a house. You’ll need to consider how you will pay for stamp duty, building and pest inspections, insurance, legal fees and moving costs. There may also be council rates, strata costs and other expenses that may pop up, which could leave you feeling drained, both mentally and financially!
To avoid any surprises during the process, keep a spreadsheet of all your expenses associated with the purchase of your first home, or consult your financial consultant or mortgage broker to do the calculations for you. Read full article here...
It's not enough to be prepared to pay for the home: it's essential to be prepared for what comes after as well.
As a first-time buyer, it's always a good idea to get advice from experts in the field. Going it alone may be appealing, but it can do more harm than good. Here's what Columbia Real Estate had to say on the matter:
Not Using a Real Estate Agent
Yes, you can buy a home without a real estate agent, but it's not wise, especially your first time around. Not only does an agent have better abilities to search for available homes and zero in on those that would meet your needs well, but real estate agents understand the process well and can guide you through negotiations and paperwork until the house is actually yours. Read full list here...
A real estate agent can help you in more ways than one, whether it be their experience with the market or their ability to find what you want.
One final common mistake we'd like to highlight, that you would do best to avoid is not getting a home inspection done. Sometimes home buyers get so emotionally attached to a potential home that they choose to skip it completely. All homes, from a rustic bungalow to a shiny new condo, need a home inspection so you can be sure you have the full story. Sherry Jenkins of wemortgage.ca details this mistake and its ramifications:
They skip the home inspection
Buying your first house can be an exciting and stressful time. There are so many things to consider that you can find yourself getting overwhelmed. Here are some common mistakes first-time homebuyers make when they are looking to buy a house.
That's always a big mistake. Sometimes something really big could be wrong with a house that you can't see yourself. That's why you should always get a home inspection. A good home inspector will let you know whether the property is truly worth what is being asked and will give you a heads up about repairs that might need to be done in the future. Read full list here...
An inspection might give you the upper hand in negotiations and is designed to eliminate any costly surprises.
Being a first-time home buyer is an exciting experience, but it can be an expensive one if you aren't aware of mistakes that others have made. Have tons of fun during this wonderful ride, but please be safe :)