Buying a home is among some of the most crucial decisions that you make during your lifetime. There are several things that are needed to be taken care of including the community where you want to live, the annual household income and expenditures of your family, the mortgage on the new house etc. It is only the blend of several different aspects that you are able to buy a house without messing anything up.
Unfortunately, many people don’t understand this. We went through some of the most costly mistakes people make while buying a house. Following is the list we came up.
Don’t make an Uninformed Bid
A very big mistake many people make while buying a house is that they bid with their eyes closed. Not knowing the market prices, the price range of the houses in the community, or that of a certain type of property can lead to over bidding of the property you are willing to buy. In a worst case scenario, over pricing can cost you tens of thousands of dollars.
Stick to Your Pockets
It is quite common for people to route for a house that does not compliment their pockets in any way. Buying such a house without thinking long term can lead to great financial problems in the future including massive debts. You might even have to sell such a house due to lack of affordability.
Count Additional Expenses
While buying a dream house, people often forget to count the additional expenses that come along with the house. These might be in the form of property tax, home insurance, certain irregular maintenance costs etc. Not counting expenses like these can lead to budget upsets in the future.
Don’t Get Carried Away
This is a quite common while making a house-buying decision. People get carried away in excitement and this is exactly what sellers try to do since it is the exact moment when you are most vulnerable and don’t think straight. The seller might show you a fancy thousand dollar upgrade and demand and extra ten thousand for it.
Therefore it is better if you first find the market value of a certain added feature rather than finalizing your bid right away. Alternately, you can also look for houses that are initially plain and offer you the space and freedom to add value to them after purchase.
Relying completely on an Agent
Although most state agents make it their ethical responsibility to give you a fair opinion, others might want to rip you off. While you listen to their expert opinion, you must also undergo your own research to end up with a better house at a fairer price.
Plan for the Future
If you are buying a house, you plan on living in it probably for the rest of your life. Therefore it is important to bear in mind the future family planning: The number of kids you plan to have, the number of rooms required when those children grow up etc.