When it comes to buying your first home, it can seem like there are a million things to think about. In addition to choosing the right location and price point, there are also things like property taxes, maintenance costs and inspection contingencies that might seem like they’ll take forever to sort out.But don’t worry! Most people make the same mistakes when buying their first home that they would with any other major purchase. In fact, according to statistics from real estate listings website Zillow, 80 percent of first-time homebuyers make one or more of these five common mistakes when buying their first home. If you can avoid making these mistakes, the home buying process will go much smoother for you and your future home will most likely be a great investment.
Choosing the wrong location.
Location is one of the most important factors in determining the cost of your home. If you buy a home that is too expensive for your budget, you might end up having to pay loan or mortgage payments that are much higher than what you can afford. This can lead to financial trouble in the future if you don’t make enough money to cover your monthly expenses.Choosing the right location for your first home is more than just choosing a neighborhood or city that has a good reputation. It’s important to consider factors like the property taxes, the average price per square foot and the average age of the homes in the area. The last thing you want is to be stuck paying a higher mortgage payment every month because your home is too expensive for your budget.
Not checking the home’s history report.
Before you close on the purchase of your home, you should get a home history report. This report can tell you whether there are any serious problems with the house that you might not be aware of, like roof repair or termite damage. If you don’t check the report, you could end up buying a home that you really can’t afford.
Not verifying the home’s water supply and sewage system.
Before you close on the purchase of your home, you should get a home inspection to make sure that everything is in working order. This includes making sure that the water supply and sewage system are in good working order. You should also make sure that the home has a good foundation and that it is structurally sound. If the house is not structurally sound, you could be responsible for paying to have it fixed. If the water supply or sewage system has serious problems, it could cost thousands of dollars to fix.If you can’t afford to fix these problems, you could end up having to pay for water and sewage services every month.
Not finding out about the cost of utilities.
Before you buy your first home, you should make sure that you know how much your utilities are going to cost. This will help you determine how much you can realistically afford to pay for your mortgage and how much you can afford to put in your savings account to use as a cushion in case something unexpected happens.
Not asking the right questions during the inspection.
During the inspection, your real estate agent will be there to answer any questions that you have. But you should bring a notepad and write down any questions that you have. For example, you might want to ask the inspector about the roof, the foundation, and the plumbing in the house.
Not asking the seller for a reduced price.
If you can afford the home that you’re looking at, you should ask the seller if they’ll lower the price. This could help make the deal go through faster, and you could end up getting a great deal.
Bottom line
The home buying process can be stressful, but with the right information, you can make the process much easier. Before you buy a home, make sure that you get a home inspection, get a home history report, ask the seller to lower the price if you can afford it and check the water supply and sewage system.