Doing anything for the first time naturally always comes with its anxious feeling. For a first-time property buyer, it is no different. So, it is no surprise that first time property buyers can mess up the entire property buying process due to lack of experience or knowledge.
Buying a property is a very serious financial decision you can consider, and one wrong or misinformed decision can make you regret the entire idea.
Here I have enlisted 9 common mistakes first-time home buyers make below. These lists of 9 common mistakes first time home buyers make can easily be avoidable if you put a little dedication into your home search.
- Buying Beyond Budget:
It is far too common to find first time property buyers in a bid to secure a more comfortable home going for a property that is clearly beyond their present finances.
First time property buyers are advised to have a budget and to stick to that budget.
They do want to go beyond their budget and when they have acquired this property, they find themselves struggling for daily sustenance.
Some other times the problem is that after buying the house, some later find out that they have overlooked other extra costs associated with property ownership.
- Buying in Unfavourable Market Conditions:
You need to learn to be patient and buy in a favourable market for you. This is called the buyer’s market. It all comes down to supply and demand. If there aren’t many houses up for sale but a lot of people looking for houses, the housing market is going to favour sellers.
They’ll be able to sell their property at a higher price than they would in a buyer’s market. You really want to try to hold off until there are more houses for sale and less people are buying.
You’ll get a better price on your house because more or less people looking at more available houses means sellers have to make their home as appealing as possible in order for it to sell. This often means doing upgrades to the home and lowering the price, making it the ideal time for you to buy.
Do a little research into the market in your area. If you aren’t sure what to do with the information you find, talk to a reputable real estate agent to help you make sense of the information you have.
- Looking for suitable Homes in the wrong neighbourhoods:
It is important to note that the kind of home you get will much depend in the neighbourhood you are finding house in.
It is far too common to see first time property buyers looking for their dream homes in the wrong area.
Due to low finance, it is very common not to find a suitable property that they want.
Most of their dream homes can possibly be found in more developed city area and affluent suburbs which most often are beyond their budget.
- Skipping Thorough Home Inspection:
Foregoing a thorough property inspection might be a common mistake of first time property owners.
The novelty and excitement of a new property might make some first-time buyers feel like there’s nothing that would possibly change their minds about wanting to buy the property. It is not until they’ve moved in and realized that there are major and very costly maintenance issues such as mould, termites, a leaking roof, electrical issues or foundation problems do they begin to have regrets.
- Using The Wrong Real Estate Agent:
Getting the wrong real estate agent can be a starting step can have negative effect on first time property buyers.
It is of great importance that first time home buyer should find and work with the right real estate agent who they can trust and feel comfortable talking to.
They should be ready to listen to your worries and comprehensively understand your wants and needs.
They should understand you as a first-time buyer and relate with you with patience where required.
- Following the Real Estate Agent’s Every Words:
It can be a great help and a source of advice to have a good real estate agent as a first-time home, but you do not want to leave the whole thinking to the agent.
After all you are the one who would live with the consequences of any decision made. So don’t mindlessly listen to everything your agent says but also think through their advice. Something that may not seem like a big deal to a real estate agent may be a big deal to you. You know yourself better than your agent could ever know you.
Your agent is important. They know more about the housing market, current trends and can help you negotiate a fair deal, but you know your wants and needs. So, know how to work with your real estate agent and how to listen to him.
- Closing With Verbal Agreements:
It is not a good business rule to count on verbal agreements when making transactions.
The danger of making such agreements is that circumstances could always change for the person you made a verbal agreement with, and he may not consent to having made any of such agreement.
Without evidence of the agreement, you will find yourself with little choice.
If you want something and the seller agrees to give it to you, make sure you get it in writing. That couldn’t be more important.
- Expressing Emotions:
If you love the house, you are going for don’t let the seller’s agents read that from your emotions.
Agents are good at reading emotions and negotiating the last cent out of prospective purchasers. A wise home buyer knows there are lots of houses – and there’s one out there that’s the right house at the right price. If you can’t afford it, move on and keep looking.
- Having Too Little Knowledge of Real Estate:
At the same time, it is safer to have a good knowledge of the real estate business. That way you are not cheated, and you don’t make mistakes the agent might overlook. After all any mistake made would be yours to bear throughout the period to the right of the property.
Buying a home can pretty much be stressful and overwhelming, and for a first-time buyer it could even be harder.
Even at that it is important to avoid its potential pitfalls by been aware of those property issues ahead of time. That way you can protect yourself from costly mistakes and make your purchase with confidence.
With this piece we believe you would have a renewed zeal and shoot up confidence to buy into your first home.