Mistakes to Avoid for First-time Homebuyers

Buying a home is usually a result of years of saving, planning and commitment. Hence, while taking such a huge and crucial decision, it is important to be well informed and know all aspects of the decision you are going to make. This is especially true for first time homebuyers, who have waited and saved for years to fulfil their dream of buying their own house. However, there are chances of making mistakes as this is a novel experience for many. Some mistakes that can be avoided are listed below-

1) Letting Emotions Cloud your Judgement-

While achieving something so big and something that one has possibly dreamed of for so many years, it is plausible to get emotional. However, it is important to not let our emotions cloud our judgement, and not get too emotionally attached to a particular property. Buying a property based on emotions may lead to your missing out on better properties for potentially the same price or even lower. In some instances, you might end up overpaying well above a property’s worth just to buy it.

2) Overspending and Not Sticking to a Budget-

While buying a home, it is important to find a budget that suits you and to stick to it. Buying a fancy and expensive home may seem great at first but, over time the financial strain from the decision will catch up with you. This can cause problems in covering unforeseen financial expenditures, such as medical expenses, insurances, etc. These financial problems can cause stress, and can negatively affect your mental health, as well as both your personal and professional life.

3) Buying From Less Reliable and Reputed builders-

Lesser reputed and reliable builders may often sway customers with cheap prices and large discounts. However, though they offer huge discounts, these builders may not always be trustworthy, and you may end up making a huge compromise just to save a little money. On top of this, you have a guarantee of high quality and timely delivery while buying from a trusted builder. While buying from these less reputable builders, there is a high chance that there will be many legal problems, scams, delays in completion of the project and at worst, abandonment of the project due to lack of finances from the builder’s end.

4) Not Researching Thoroughly-

Buying a house is a crucial decision that can have a massive impact on one’s life. So before taking such an important decision, it is important to research properly, and determine your budget, your location and size preferences, etc. Nowadays, most builders also offer virtual tours of houses, so you can scout out your house and judge whether it matches your needs, without ever stepping out of the safety of your room.

5) Not Taking Hidden Expenses into Account-

While buying a house, the main expenses that come to mind are those of buying the property. Buying a house contains many more expenses. Hence, while buying a house, it is important to consider the registration fee, moving charges, tax charges, maintenance charges, etc and to make sure that you are still within your budget after these extra expenses.

6) Loan Eligibility-

While buying a house, it is advised to have 20-25% of the property’s value ready as a down payment. The rest of the amount can be availed as loans from banks. This makes it important to take the estimated figure of the loans you will require and to ensure your eligibility for it. This can help avoid trouble and unnecessary inconveniences.

7) Don’t chase discounts-

It is important to ensure that discounts are not the driving factor while buying a house. Buying houses at high discounts from lesser known and reputed builders often lead to compromises in quality, scams, and may even lead to massive delays and possibly even abandonment of the project due to lack of finances from the builder. So, while there is no loss in buying houses on discount, remember to always check the track record of the builder.

8) Try not to buy a resale house-

While resale houses may seem cheaper and like a smarter financial option, with maintenance, renovation and upkeep charges, they may end up being very expensive. So, it is always preferable to buy ready to move-in houses from reliable and trusted builders.

9) Not taking future requirements into account-

It is crucial to take into account future needs for the families. You should buy houses that can support both growing kids and the elderly, with high quality educational institutes as well as recreational parks and playing areas for kids, along with good medical facilities available for the elderly.

Buying a house can have a massive impact on one’s life, and it is important to avoid all mistakes possible while buying it.

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