14 Tips for savvy homebuying
Buying a home, whether it’s your first, second or as an investment, is one of the most important decisions you will ever make. Here, in no particular order, are 14 tips to help you enjoy the experience and ensure that you don’t get burnt in the process.
1. Unexpected Costs
Many home purchasers are so excited about their new home that they don’t consider the possibility of anything breaking down or needing repairs! The truth is many things can happen when people are moving in and out of a house, and within the first few weeks of occupancy there could well be expenses that need immediate attentions. A smart buyer will allow provision for this in their budget.
2. Know what is included
Being sure of what is included with your new home can help avoid heartache when you move in. Do the curtains stay and is the dishwasher included? It can be disheartening to find out you have bought the home of your dreams only to realise you haven’t allowed for the finishing touches to make it your own.
3. How much should you invest?
Buying a property that you can afford based on your present situation, or on money that may be coming in, can be a costly mistake. Think about things such as reduced income, interest rate rises, the addition of children or, at worst, job loss. Having a plan should any of these things occur can take a load off your mind and your wallet!
4. Avoiding the "Lemon"
Visiting a home several times, under different circumstances such as a rainy day, can help you avoid buying a lemon. Checking for a leaky roof, smells from nearby factories and noisy neighbours on a weekend are not something we think of when we first inspect a home. But these are things we may need to live with for some time if we buy. Has the property been on the market for some time, or repeatedly sold in a short period of time? If so you need to find out why.
5. Underestimation
You need to decide what is most important to you in your new home. Is it the location of the home itself? You may spend years regretting not spending more to get the right home simply because you underestimated your limits. It is important to spend within your budget, but if you can’t find a home to suit, maybe you need to look at a less expensive area. The home of your dreams may be on a slightly smaller block or just a little further out of town. Remember, you will be living there for several years so you need to love it.
6. Price Vs Emotion
Don’t miss out on the house of your dreams just because the vendors won’t drop their price. If the house is within your price range, and it suites your needs and you live it, don’t miss out as you may spend the next few years regretting your decision.
7. Important inspections
Building and pest inspections are sometimes overlooked. Be cautious and hire professional, licensed operators to carry out these for you. You may be surprised at how many faults they find in the home you believed to be "perfect". But it is the expensive faults that should concern you the most. A house that is structurally sound is more important than worrying about the one whose washers need replacing in the shower. The amount of cost involved in hiring a qualified person for the job is small when you consider the cost in major repairs after you take possession.
8. Don’t dilly dally!
Although buying a home is a big step, don’t delay a purchase because you believe "the prices may drop soon", or "maybe we should wait a year". You could miss out on the right home, and if you are renting you are still paying for the landlords loan. Remember that home prices increase over the years, leave it too long and you may miss the boat!
9. The frustrated buyer
If you feel fed-up and are sick of looking at houses, maybe you need to take a break from your search for a couple of weeks. Some buyers end up buying a house which "will do" just because they can’t be bothered looking anymore. This is a mistake and a decision that could be regretted for many years to come.
10. Trust your instincts
Trust your instincts when you are looking for a home. A house has to feel right to be right. If you get good feelings from a home, you should consider buying it. If something doesn’t feel right, it probably isn’t and you should listen to your instinct.
11. Smart-buyer syndrome
The market is always changing and shouldn’t be relied upon to help you make a decision to buy. The most important factor is your families well-being and the right home to live in. If you try to be smart and wait for the market to drop or rise, you may miss out on the ideal home.
12. Ongoing costs
When calculating your price range, remember to allow for the "on-going costs" of owning a home. Rates, insurance and maintenance on your own home are expenses many people forget to include in their home-buying budge. This can create quite a large financial burden on families when a rates notice comes in and there is no money to cover it. Don’t make this mistake, do some homework on the costs in your new homes area and get quotes for insurance and water rates.
13. Relative decisions
Don’t let friends and family try and make your choice for you. Remember they are not the ones who will have to live in the home for many years to come. Everyone has their own tastes and requirements and not everyone will agree on what is important to YOU. They may give some advice or state an opinion, but make sure you make the final decision. You have to live with it.
14. Trusting the agents
Sellers are the clients of the agent. Agents make sales for a living. Ask questions of the agents, and ask for verification of the facts. Many agents are honest and ethical, but it doesn’t hurt to ask for proof of a statement or claim.
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