Nothing can beat both the joy and apprehension of buying your very first home! Getting the keys of your own place is not onlya foray onto a new phase of your life, it’salso the moment when the realisation hits that you are starting life on your own terms as a responsible adult. There are a lot of emotions flying around, and it’s true that you aren’t expected to know all the groundrules no matter how much you have researched.
To make sure that your home buying process goes as smoothly as possible, here are a few common mistakesthat you should watch out for – take a look:
1. Taking the Impatient Road
Investing in real estate is going to be one of the biggest decisions you are going to make in your life. Instead of going down the impatient route, plan and analyse your choices in advance, aided by careful research into both your requirements as well as your preferences.
2. Budgeting Blues
Don’t stretch your budget to a point that it becomes impossible to manage a few years down the road. Always plan ahead, and go for a home that you NEED, not what you WANT.
When taking the plunge, set aside a chunk of your savings for any renovation, furnishingand for hidden costs – you don’t want to lose out on your dream home just because you bid a little too much to win it for yourself in the firstplace.
The price tag on your investment is just where it all begins – you’ll also have to consider the insurance fees, maintenance, council rates, water rates and moving coststo ensure youare looking at the bigger picture.
3. Shopping for without a Pre-Approval
A mortgage pre-approval is going to give you a firmbudget for what you can spend and have you prepared to make stronger offers with the seller being more confident that you are likely to obtain your finance.
You would be surprised how many buyers going shopping without one only to find out later that they have been looking well above what they can afford or to be beaten on a house where the other buyer had their finance ready to go.
4. Decide what you are ready to negotiate for
Be prepared for the realisationthat you can’t have everything – a practical approach will save you from a lot of heartache and headache! Make alist of what are your absolute must haves and then make a list of what you think of as ideal but can live without in the long run.
You can then speak with the active agents in an area and let them know exactly what you are looking for and that you have your finance ready to go. Agents love dealing with someone that knows what they want and can make decisions quickly. Many agents put properties out to their database of active buyers before they go to the market, which can mean less competition for you if you are on that list.
5. Doing it All Alone
Don’t hesitate in getting someprofessional help – you are going to thank yourself for the decision later on. Its only natural to get caught off onthe idea of getting a property just by looking at it, but in real life you need to consider everything fromits location, amenities and market demand if you are looking for a worthwhile investment for your hard earned cash. A mortgage broker and real estate agent will help you land and finalise the deal, a conveyancer can help with contract conditions, a professional property inspector will check and see whether or not the house is truly worth its price tag.