Buying a new home can be a rather daunting task. Often, first-time buyers get confused and overwhelmed by the number of options presented to them. As they continue to look at potential properties, the more confused they get. And this state of confusion can often lead to making bad choices. So, first things first, it is essential that first-time buyers seek the help of a professional in order to make smart purchase decisions. Say, if you’re looking to buy a house in Cheltenham, then you must speak to estate agents in Cheltenham and hire an agent who you think will help you through the process of buying your first home! Also, first-time buyers must do their due research and make sensible purchases – after all, buying a new home is a pretty big investment! Here are 6 silly mistakes that first-time buyers tend to make as well as ways to avoid such mistakes.
Table of Contents
Not Understanding the Market
More often than not, first-time buyers get taken in by the ‘market’. The property market has its cycles, and there will be times when the demand is high while the supply is low and vice versa. It is essential for first-time buyers to understand the market and choose the right time to buy a new home. Sometimes, potential buyers put off buying a new home or rush into the process of buying a new home because of what they read or hear about the real estate market. It is essential for a buyer to understand the market and how the property market works, in order to make a well-informed decision. If you aren’t very confident in your abilities to correctly understand the property market, hire a real estate agent who can help you through the process of buying your first home.
Miscalculating the Cost of Buying a New Home
Most first time buyers feel that owning a new home means paying for the new home, and that’s that. However, there are so many hidden costs that are a big part of the process of buying a new home. Paying the real estate agent, paying the property and land taxes, buying property insurance, hiring a property inspector, monthly utility bills, paying off the mortgage – there are so many costs involved in buying a new home! And, let’s not forget about the monthly utility bills and other fixed costs that
homeowners need to pay every month. Understand the fox costs involved and manage your finances accordingly.
Not Sticking to a Budget
There is a reason that most experts recommend setting a budget before you even start looking at properties! Often, first-time buyers do not set a budget and start looking at potential properties that are available in the market. They walk into a fancy home, fall in love with it, realise it may be way beyond their budget but continue to proceed with the deal anyway. When you, as a potential buyer, fall in love with a property without considering your budget restraints, there are bound to be financial troubles! Hence, it is essential that you decide on a budget before you even start looking at properties.
Rushing the Process
Many first time buyers are so excited to finally become homeowners that they tend to rush the process of buying a new home. Keep in mind, buying a new home is a really big financial investment! You need time to start improving your credit score, saving for a downpayment and working on your debt to income ratio in order to be pre-approved for a mortgage. If first-time buyers attempt to rush through the process, they might not have time to save for a downpayment or to improve their credit score. Instead, you should start putting your finances together at least 8 to 12 months before you even look at potential properties.
Not Focusing on the Location
Location is everything! You need to be very careful of the location of your home. What is the crime rate like? What is the neighbourhood like? Is it safe at night? Is it a school district? If you’re interested in buying a property in Cheltenham, but there is nothing in your budget, start talking to letting agents in Cheltenham instead of looking at properties in surrounding areas.
Relying Solely on Pictures They see Online
Thanks to the Covid-19 pandemic, the way we view houses has totally changed. One common mistake that first time buyers make is that they look at pictures online, fall in love with a place just by seeing pictures and then attempt to negotiate the best deal. However, you cannot solely rely on pictures that you see online. You need to visit the property to actually understand the foundation, the structure, the space, the square footage and so on. Visit the property in the morning, check it out in the evening and maybe drive by the property at night. That way, you will get a sense of the neighbourhood too