If you’re buying a home for the first time here’s a list of the 10 biggest mistakes first-time buyers make – and you really want to score a zero in this test!
Mistake 1: Not doing your homework – there is no excuse for this! With the internet at your fingertips you can do all kinds of research into buying your new home. And the key here is that you do the research. Don’t rely on someone else to do it for you and then ‘report’ back. They might miss something. They don’t know what route you might decide to go on when you see something on the internet and want to investigate further. You need to be armed with knowledge on what you are about to embark on – and knowledge is power.
Mistake 2: Choosing a bad location – location doesn’t only refer to neighbourhood. You might be in the best neighbourhood in the town but on the busiest intersection. That is a bad location! So your choice of location – first in selecting the area you want to be and then the position within that area, is vitally important. This could take time, so don’t feel you need to rush the decision that you might later regret.
Mistake 3: Overlooking a poor floor plan for a good looking exterior – houses often sell on what agents refer to as “curb appeal” or the way the house looks from the road. And while the appearance is important, the living space inside is paramount. Can you live in it? Is it practical? Do you have to spend a lot to get it the way you want it? You may be prepared to do alterations, and this is fine, but go into the deal with your eyes open to this option. Remember you live in the house, not on the outside looking at how pretty it is!
Mistake 4: Not keeping your family’s needs in mind – this might seem obvious, but is often overlooked. If you have a large family who often visit will you all be cramped into a small living area and nowhere for the children to play? Is there enough area for cars to park? Do you need a lounge and a separate formal dining room or will open plan suit you better? Is a split level home practical for your family’s needs? These types of considerations can be missed in the excitement of the purchase – you don’t want them to come back to bite you.
Mistake 5: Trying to make a clever investment – if you are a first time buyer, this is probably a home you will live in before climbing up the property ladder. It would be unwise to try to pre-empt the what could happen in the property market by attempting to make this an investment property rather than a home.
Mistake 6: Not having a thorough inspection done – just because the agent or the seller tells you the house “has no problems” doesn’t mean you shouldn’t get an independent inspection done that will report to you on the structure and the possible problems you may need to deal with. Having points highlighted to you doesn’t mean that you shouldn’t buy the place – but at least you will know what you will be faced with rather than getting a nasty surprise that you hadn’t factored in to your buying equation.
Mistake 7: Not checking the builder’s reputation on a new home – again, don’t just take someone’s word for it. Check it out yourself. Get references, and then contact those people and go and visit their homes to see exactly what your builder has done and how it has stood the test of time. Also ask about the relationship the referee has had with the builder. Were problems solved? Were there any unresolved issues? After all, it’s your money and you need to spend it wisely.
Mistake 8: Settling for second best because you’re impatient – don’t be tempted to settle for what you’re not totally happy with because you feel you need to “get on with it.” You’re sure to regret your hastiness later if you do.
Mistake 9: Waiting for a better market and interest rates – the problem with waiting for “just the right time” is that you’ll never really know when that time arrives until after it has passed!
Mistake 10: Not buying at all – if you’re in the market to buy, then you have made that decision for a number of specific reasons. By procrastinating on your decision you are limiting the potential for future growth that the benefits of having a property investment bring. The longer it takes for you to get your foot on the ladder, the less time you have to let your investment work for you. This might seem to contradict number 8 (above), but realize that taking your time on being selective as to what you buy, is not the same as not buying at all!
Contact us at IGrow Wealth Investment – my team and I will help you on the road to achieving the success you deserve and together we’ll get your score down to 0/10.