Buying a house is a big decision due to its emotional importance, pressure of buying the right one and time crunch and these factors might cause you to overlook some essential details.
Here are a few common mistakes people make while buying a house and tips to avoid them:
1. Overlooking your price range
It might seem like a no brainer but the reality is that a lot of people bite more than they can chew thinking that they will work harder and give in a few extra hours to keep the house and pay for its mortgage. It is one of the biggest mistakes; there is something really off setting about working extra to keep your house. How much time will you be spending in that house if you are working late everyday just to pay for it? When will you enjoy the house you bought?
So think hard and fast about how your finances will look after buying the house. There should be extra emergency cash stacked aside and make sure that the mortgage you are deciding to pay leaves enough in your monthly budget to live a comfortable life.
2. Not using a Real Estate agent
A good real estate agent can help you move fast and put in the competitive offer. In a sellers market today, things move fast and it is difficult to keep up but the right real estate agency which you can trust will get your work done for you. You should select the real estate agent with expertise in the location you are trying to get a house in through a careful screening process. For example if you are looking for a house in Brisbane, Wendy Russell will provide you the best services by combining strategic skill set with local knowledge of property.
3. Not applying for pre-approval
Pre-approval letter is a positive affirmation that the company will lend you a certain amount with a decided interest rate. While buying property, this pre approval can act as a game changer because it shows the sellers that you are a serious buyer with a good financial standing and this puts you above those who do not have a pre-approval in the buying race.
4. Unclear priorities
You should be very clear about what you need in your house. Make two lists; one of must haves and the other one of would be nice. In this way, you will have a clear mindset that what is it that you need and want without emotions getting in the way. Set the number of bedrooms and storeys that you need. Make decisions about the back deck, house size, district etc. It will help you narrow down your search.
5. Skipping the Inspection
After selection of the house the lender arranges an appraisal to check the condition and value of the property. Most people confuse appraisal with inspection. Inspection happens after putting in an offer and before getting things finalized. You are responsible for hiring an inspector who will tell you the condition of the roof, walls, plumbing, electricity and other important items. Inspection will let you know what is wrong with the house which will help you decide whether to close the deal or walk away.
Article Submitted By Community Writer
