THE MOST COMMON MISTAKES PEOPLE MAKE WHEN BUYING A HOME
Aug 8, 2016
When it comes to home buying, it is a common fact that a lot of us do make mistakes in the choices we make, but there is nothing better than learning from you’re mistakes. Here are a list of the most common mistakes people make when buying a home. Some are more obvious than others but by hopefully taking note, you won’t be making these mistakes.
People don’t consider renting as the financially better option
Along with all the pros of owning your own house, like tax benefits, equity and the idea of it being your own, there are a lot of finance cons as well and therefore it maybe a better deal to rent. The first question you have to ask yourself is ‘How long am I going to stay there’. The average young person is at their job for anything between 2 – 5 years and when you start to calculate the cost over that period of time, it doesn’t really make sense. Are you 100% sure that you won’t lose too much if anything, by getting out of that house?
Having too much faith in online home values
The price of any house can pretty much be checked online, via property portals like On the Market and Rightmove, and it is checking that gives buyers and sellers a false sense of home values.
Every property is unique, has different features and fixtures & fittings. A property on one side of the road could considerably vary in price from a property on the other side, so assuming the property you are interested in is going to be the same value is not the best form of practice. In order to get the best possible idea, you should aim to spend some time with a local property expert, someone who understands the market and the different variables that effect the price.
Finances are not sorted
Not getting your finances sorted before you start looking is a common mistake. A lot of the time, before viewings – estate agents will ask if you have a mortgage in principle already sorted. Not having one puts you in an unfavourable position straightaway. It is very easy to get caught up in looking for your dream home, only to find that the bank will not lend you that extra amount for you to turn dream into reality.
Not planning ahead
A lot of people don’t realise that they will need to move quickly. During the house buying and selling process, there are a lot of factors that can change the way you need to react and if you don’t you may end up losing the property you want. It is wise to set out your criteria from the outset and get moving. The early bird catches the worm.
Think about the seller as well
You may have found the perfect property but the ultimate end decision on who the house goes to is up to the seller. Failing to take into account their personal circumstances can lead to a devastating end. Is the seller in a hurry to move? If so are you prepared? Overlooking this important factor can see the house go right under your nose.
Going head over heels.
Putting in an offer after the first viewing is quite often a regrettable decision. It is wise to have a look around the property at least two times before being certain it is the right property for you. The first time you go and view a property, you will only identify the good points about it, you won’t notice any of the less desirable features.
Build up a picture
Not only should you view a house more than once before putting in an offer, you should aim to view the property at different times of the day and week. You can really build up a picture of what the area/home is like.
Ask the locals
Asking the neighbours is probably the single most best thing you can do when it comes to researching the area, with a few short and simple questions you can get a very detailed idea of what the surrounding area is like, no information online can better compare.
For those of us with working lives, it is a good idea to check on commuting times. The last thing you want to do is to be stuck in traffic every night or be late every morning because you have to catch more than one train.
Go for the right solicitor
When choosing the right solicitor, always go on referrals if it’s your first time. A lot of sales will and do fall through, because of the solicitor taking so long and the seller getting inpatient.
Skimping on the survey? A full survey should help identify any serious structural defects, as opposed to a more cursory one. If the survey brings out any defects, it is not always a negative – you can use it as a means of negotiation with the seller to reduce the price.