Buying a new home is an exciting prospect. It is a chance to have a space that is your own, no landlord breathing down your neck and no restrictions on décor (though you might need to get planning permission before you carry out some renovations). It is also a significant symbol of achievement for most working adults.
All the same for many new home buyers; the process of buying a new home turns out not to be the rosy experience that they always dreamed of but an emotional rollercoaster that oftentimes results in much frustration to the buyer.
This usually happens because they make some mistakes, which turn the situation into one big mess. Here is a list of those common mistakes, and how you can avoid them so that you can get your new home stress-free, and get to enjoy it to the fullest.
1. Exceeding budget
Before buying anything as costly as a home, it only makes sense that you should make a budget, and most homebuyers do that. They evaluate the resources available to them, their predicted future financial needs and come up with a price range that they can comfortably accommodate. Job well done so far!
The problem comes in however, when after they have done all that work they still wind up buying property whose value is well over their stated budget. Most of them do this, hoping that they will somehow be able to make up for it by making some few nips and cuts to the rest of their budget but this hardly ever works out.
Nips and cuts had already been made to their budget to accommodate the expense of buying a home and trying to make any more will usually result in much tension and anger in the family. The worst thing however, is that if by any chance you default on your mortgage repayments for any reason, you just might have your house repossessed.
Avoid this by sticking to your price range, no matter what. You are sure to find something within that range, it might be smaller but it is better than overspending. If you discover that indeed, there is nothing conducive that fits your budget, then go back to the drawing board. Avoid rash decisions.
2. Not getting own independent inspection or advice
You need to realise that the homeowner’s estate agent will be getting a commission out of the sale of that house, so any advice or information they give you will probably be geared towards getting you to buy. While it is against their code of ethics for them to out rightly tell you a lie, they can and will most of the time conceal some ugly truths.
Make sure you get your own advice from a surveyor who is not working for the buyer. Also, get your own independent homebuyer survey which will review the house for you before you agree to buy.
There may be a myriad of problems with the house, which you cannot see but the surveyor will know what to look for. Traces of mould infestation, structural issues and issues with the plumbing system are some of the things that should make you reconsider buying the house, and if you do decide to, then you should buy at a much lower price than the asking price.
Do not go ahead and buy a house without having all these matters checked out and getting advice from an independent surveyor otherwise you might wind up buying a ‘problem house’ that will cause you nothing but trouble. Find out about getting a homebuyer survey.
As with any deal that requires negotiation, the timing in which you agree to make a deal is crucial. If you do it too soon, the homeowner will know that you are desperate and will take advantage to sell the house to you at the highest price possible. You probably will not have negotiated the price and will not know just how low the seller was willing to go.
Take too long however, and you just might be overtaken by another buyer who has shown more interest. A delicate balance ought to be struck between what constitutes waiting too long and what is too short a time to get the best results out of the deal.
This post was written by guest blogger Brian Taylor from Stella Settlements. Brian is a consultant with the company and lives in Perth.