You haven’t found it yet, but you already have built a castle in your head. Buying one’s dream home is a journey that is fraught with a lot of uncertainty, stress and possibilities. There are so many things that one needs to consider. Here are the top six mistakes to avoid while looking for the dream home:
Unsure of the location: When buying a house, it is advisable to consider if you will live in the locality. If you unsure about it, then it might be a better idea to keep your options open. Often, the fear of losing out on a good home deal makes home buyers take hasty decisions. Don’t get swayed. Do proper due diligence, see all kinds of properties to allow for the right comparison and then take an informed call.
What is the end-use: Investment or living? Very often many people buy their first homes thinking they will be living there for the long term. However, that is not always the case. If you have plans to move, then don’t buy a house. People buy homes so that they own real estate as an asset and then let it out for rent. It is important to figure out why you are buying the property as it would help determine if you should opt for ready units or an under-construction property. Also, buying a new home will also bring in costs with accessorizing as well, which will vary depending on whether you want to live there or give it out for rent.
Hidden and added costs: Buying a home is not just a simple act of trading money for real estate. Owning a home will also bring in other forms of costs such as stamp paper duty, property taxes, homeowners‘ insurance and maintenance costs. With all of these added and hidden costs, a home that was well within your budget can quickly go over budget. Make sure that you inquire about the local taxes, insurance and the average maintenance costs.
Not getting home loan pre-qualification: It is essential that a buyer first should get a home loan pre-approved so that it will help the developers and realty players get a proof of the buyer’s paying capacity. Often, home buyers put down a down payment before they get their loan approved to ensure that their dream home is not sold to someone else. It is advisable to buy a home only after ascertaining how long it will take to get the home loan approved and other alternative options in case it doesn’t work out.
Ignoring neighbourhood issues: Often, in order to make up for the costs of the home, people get properties in a locality that have problems such as lack of proper roads, no lighting, lack of drainage and sewage, electricity and water supply shortages, lack of parking etc. While costs are a big thing to consider, these issues can become long-term problems for buyers. Hence, it is extremely essential to do a neighbourhood due diligence to find out what public utilities and transport facilities are available, along with other considerations such as schools, colleges, hospitals, parks etc.
Avoiding pre-inspection: Today, many buyers have shifted to buying homes and other properties online. It is now possible to sort things over phone and Skype and finalize the deal virtually. However, one critical mistake that home buyers make in such a scenario is avoiding a pre-inspection before buying the place. It is essential that you visit the property at least a few times and raise any issues with the builder such as deviance from the floor plan submitted so that they can be sorted out before the deal is inked. Plus, you will also get an idea about your neighbours as well.
The key to finding the right first home purchase for you is to prioritize the must-haves from the should-haves and the above list will help you in preparing that list. Get ready to hunt for your ultimate dream home.