While buying a new home can be an exciting time in your life there are a few pitfalls to avoid if you want things to go smoothly. Many home buyers make the mistake of thinking everything will work fine if it’s a new home. Fact is, there’s no such thing as a perfect home.
Despite a builder hitting everything on their checklist, problems will always crop up. Problems can also arise from the buyer failing to ask the right questions. For instance, maybe you’re planning to have a child soon but only find out later that the water tank isn’t large enough to handle an extra person. Problems like these can be avoided if you approach things with the right mindset. In today’s article, we’re covering just that and what you should avoid when buying a new home.
Don’t buy if you expect to move again in the next few years
Everyone loves to feel like a homeowner but too often people let that desire dictate their purchase decisions. You may not like having to write your landlord a check every month while paying down zero equity. If though you expect you’ll be moving again in a few years it makes no sense to buy now.
If you’re unsure how long you’ll be in a location then it’s probably better to rent, equity or no equity. There’s no guarantee you’ll be able to sell or rent it in the future and with closing costs, property taxes, and a potentially depreciating asset you may end up paying more than the equity you’ve put down. Check your finances and take a while to decide before ever buying a property.
Not having an inspection done
You wouldn’t buy a car without first looking at the engine, likewise, you shouldn’t buy a house without taking a closer look at it. Things might seem fine to you but a professional inspector can spot hidden costs you can’t. Before deciding on anything, hire an independent housing inspector to do a review of the home and what potential costs could await in the future. They’ll have a better eye then you for spotting potential problems like water damage or termite infestations.
If a price seems too good to be true then that’s a sure sign that there are a few hidden costs involved. Renovations can run into the thousands of dollars and take years to finish so don’t skimp on hiring an independent inspector. They find problems most of the time and only cost, on average, about $300.
Not being open to negotiations
Purchasing a new home will be one of the most important decisions of your life but surprisingly many people are often averse to negotiating. They don’t like being confrontational or disagreeable and feel the price should be the price. However, negotiations don’t have to be hostel and failure to be open to them could mean losing out on a better deal.
When done professionally negotiations most always work in the buyer’s favour. Lenders and builders will expect some negotiating, it’s how the game works. If you walk in knowing what your budget and credit limit is you can position yourself better in negotiations, making the time spent preparing for negotiations worth every penny.