3 Common Home Buying Mistakes To Avoid

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

Injured Piggy Bank WIth Crutches

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

Troop Inspection (Explored)

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.

3. Timing

Buy Now

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.

 

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Posted by: Property Blogger Categories: Buying, Buying Property, Estate Agents, Finance Tags: , , , 1 Comment

One Response to 3 Common Home Buying Mistakes To Avoid

  1. avatar chris lifton says:

    well done sir, what I would say to any purchaser, caveat emptor should you use the estate agents conveyancing service. I got talked into this and it was amazing how quickly an exchange of contract and title form came “sign but do not date and return asap” Asuming I had done this they then told me I had to exchange almost straight away. This was before I had time to read the strucural survey I had comissioned! I had to withdrew my offer as I had not been the seller had signed up to compete on another property when I submitted my offer to the agent and they did not tell me. I was buying an old property and felt pleased I had had the sense not to send the forms they kept asking me for back and I had also written to them telling them not to do searches. If I was supposed to have had any legal imput there certainly was none evident. I ran this past a solicitor they were amazed at this un professional attitude not looking after their client only IMHO securing their agents fee at any cost both being affiliated?
    I have tried since to put an offer in on a tender for a property a day before the tender date and the agent said I was too late! Yesterday I tried to put an offer in on a property for which an offer had not I was told by the receptionist been accepted as a re-possession. I am not in a position to go in the agents office someone viewed the property for me they refused to telephone me back are the ” violins” out orchestrating and fiddling to a good tune to a favoured purchaser? It has been clearly a ‘shady’ few days indeed lets hope the future is certainly brighter indeed