23 January 2020

5 Common Mistakes That First-Time Home Buyers Make

Photo by Scott Webb on Unsplash
The complexities of buying and selling a property can sometimes lead to most people, making a lot of mistakes that could have been easily avoided. The situation is even more frequent when you are a first-time homebuyer and do not seek professional insight. With the current uncertainties in the property market, it is not uncommon to see a lot of the same mistakes being repeated over and over by the same first-time buyers.

1. Not using an agent

This is, by far, one of the worst and most common mistakes for first-time buyers on the market. There are more advantages to having a real estate agent brokering your property deal than doing it yourself, no matter how confident you may feel during the whole process.

The good thing about agents is that they will help you to at least be objective in your choice as their experience in the business gives them a unique insight on what is quality and what is just a waste of your money in the long run. Commercial property valuers in Adelaide are also bound to ethical standards that cater for both you as a buyer and the seller’s interests.

2. Rushing to put in an offer

This is another mistake that if you are a first-time buyer might find yourself falling into. Rushing your purchase could end up costing you more in the future in case the property you bought had hidden extra costs of repair and renovations that you are likely to miss at first glance easily.

If you want to have the best that your money can get, then you need to let the whole process go as planned; everything from inspection to opinion from experienced professionals that will allow you to make an informed decision.

3. Not applying for a mortgage

About the worst thing, you can do when buying a house for the first time is not looking at what you are able to borrow from the banks. It is always advisable that you talk to a mortgage professional since what you can afford and what your bank says you can afford are not usually the same. It is, therefore, imperative that you get a pre-approved loan before you even go for house hunting.

4. Not looking for more options

One of the absolute worst mistakes for a first-time homebuyer is not going shopping for houses and comparing the prices but instead, settle on the first house they meet. Not saying compromising is a bad thing, but it is always better to have more options at your disposal in order to score the best deal. This will not only cut on your spending costs but also ensure you get the best house on the market.

The opposite is also true in the case of a first-time buyer skipping on every house they find suited to their needs and instead wait for the perfect home. While perfection can be a good thing when it counts, it is not always a realistic goal.

This will inadvertently end up costing you more as it will not only take you much longer to get your perfect home, but you will also end up overpaying for what you may consider as the ideal home in case you find one. The best solution is always keeping an open mind and be realistic about the home you want.

5. Overlooking your budget and overspending

Lastly, but still serious mistake first-time buyers make spending more than they can afford. This is a very common mistake especially when you as a buyer find a particular home too good to pass up. This will end up with you taking a loan larger than you can afford just to close the deal because some lenders can sometimes approve for larger loans.

While a common mistake, this can easily be avoided by creating a budget and sticking with it until you get your home. Not only will you get home, but paying back the loan will not be a burden to your finances.

As a first-time buyer, you are usually the most vulnerable to common but easily avoidable mistakes when you buy your first home. Whether it's rushing to purchasing a house, skipping inspections, or just spending extra to get the perfect dream home, any of the mistakes will end up having far-reaching consequences later on. As such, it is vital to gain as much information about buying your first home before you go to look for one. With the right information, all the common mistakes can easily be avoided.

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