Buying a home is likely the biggest purchase you’ll ever make in your life. And while it’s natural to wonder if you’ve made the right choice the day you move in, you don’t want to have missed something major that leads to a bad case of buyer’s remorse.
So what are some of the common pitfalls you should avoid?
Not doing proper research
There are three things you should research when buying a home: the area, the local housing market, and the property itself.
- Find out what amenities are in the area. If you have kids and buy a home far from schools, the daily commute to and from school can leave you regretting your decision.
- Research property prices. Some buyers settle for a property because they’re afraid they may not find something else within their budget and end up paying more than the property’s worth. If you’re clued up on property prices and scout around a little longer, you could find something that offers better value for money.
- Check that the property fits your needs. Are the rooms large enough? Do you need an office space? Is it in a noisy area?
Choosing the wrong home loan
Buying a home is a huge financial investment over a long period of time. So it’s important to choose the right lender and the right home loan product.
Of course, you want a loan with a competitive interest rate. Choosing a non-bank lender like Well Money, rather than a bank that offers comparable loans at a higher rate, could potentially save you tens of thousands of dollars over the life of your loan.
That said, you should also look at other factors when comparing home loans, such as the features of the various loans and the customer service you can expect from the lender. So make sure you shop around for the best deal.
Not having the property professionally inspected
You’re running a big risk if you try to save money by not doing a building and pest inspection before buying a property.
Professional inspectors can find issues not visible to the naked eye, such as structural defects or termite infestation. If you discover these issues before you buy the property, you can either decline to make an offer or demand a discount. But if you discover these issues after, you might have to pay a lot of money to fix the problem.
Falling in love and rushing a purchase
So you’ve found a house that seems perfect. You’re in love and ready to sign on the dotted line.
Have you scratched beneath the surface? When you buy a home based on emotions you run the risk of overlooking or missing things. The last thing you want is for your dream home to turn into a nightmare. So, take your time and do your due diligence.
Misunderstanding the real estate agent’s role
When shopping around for a home, you will inevitably deal with real estate agents. While they are helpful in your quest to find the right property, remember that, legally, they have to work in the vendor’s interests. Their goal is to sell the property at the highest potential price.
If you’re a first-time property buyer, consider hiring a buyer’s agent who can help you navigate the process and avoid pitfalls.
One mistake you can avoid when buying a home is a bad finance deal. Well Money can help you secure a low-rate home loan that’s structured to fit your financial needs. Give us a call on 1300 899 724 or email us at [email protected].