A change can be quite exciting, especially one that involves us moving into a new house. The process can be as exciting as it can be intimidating. It’s also exciting as there are so many new things to do and intimidating because there are so many places where we can go wrong.
Following is a list of mistakes that one should avoid when looking to buying a new house:
Not Setting Aside a Budget
Before you begin to look around for suitable properties it may be a good idea to take a hard look at your finances. Having a clear budget in mind makes you streamline your search for the right properties.
It may have happened to you on many other occasions that you took an instant liking towards something only to realise later that it came at a cost which was more than what you were willing to spend.
But when it comes to properties, making the mistake of checking out out-of-budget properties can be quite damaging. Suppose you laid your eyes on a property which you liked to the very last detail. For a moment you may be tempted to take out a bigger mortgage and look for ways in which you can make it your new home. But doing this can prove to be a costly mistake in the future.
Carefully Consider your Decision
Purchasing a new house is a huge financial and emotional decision and it is certainly not a decision that you should take without much consideration. You should try to reason out if you’re doing it for the right reasons. Buying a new house should always be to run towards something better and not away from something unsuitable.
Buying a property is not like buying a new pair of shoes that you could buy another if you don’t like it much after you begin to use it. Unless you have too much of disposable income, you’re going to be stuck with the property that you bought for a long time to come.
A sensible way to go about the process of buying a new house can be to live in a rented house in the same neighbourhood for sometime and decide if you like living in that locality. Once you’re clear about your choice of location you can proceed to buying the new house. Also it is advisable to check out as many properties as possible in your budget before finalising one.
Not using an Estate Agent
It can be quite a mistake to solely rely on the internet for selecting the house that you wish to purchase. The internet can be a convenient source of information, readily available and easy to use but it can never really replace the expertise and local knowledge of an estate agent.
Building a good rapport with your estate agent can fetch you the best deal as they are more likely to show you the properties that match your specifications and requirements. They will be more inclined to take extra efforts to make it easier for you to deal with the various formalities involved in the process of buying a new home.
Having Many Non-Negotiables
It is always a good idea to know what you’re willing to compromise on and which are those things which are simply non-negotiable for you. But the number of non-negotiables should be such that you can count them on your fingers, preferably of one hand. Having these priorities sorted in your mind is important as you may not always get what you want from a property.
An extremely important process of buying a property is the negotiation part. Negotiating poorly or not negotiating at all is another common mistake that most buyers commit. Negotiation mostly results in the buyer getting a better price especially provided you maintain the attitude that it doesn’t make much difference to you whether or not you end up purchasing the same house. Showing too much inclination for a particular house can make the seller assume that you will buy the house even at an inflated price.
Once you have purchased the house you should think of how you can secure your finances by addressing some important questions such as ‘which insurances would be suitable for my family and my assets?’ and putting in place important documents such as a Will for which you may have to first figure out how much does a Will cost.