7 First-Time Home-buyers Mistakes to Avoid
Category Advice
Buying your first home is equally, an exciting and daunting experience. It can either be a very simple process but also incredibly stressful – with words and terms like balloon mortgage, defeasance clause and unity of possession being thrown around, one can become overwhelmed.
Fear not, you are not alone – many first-time buyers before you have made many faux pas which we can now learn from. So if you are thinking about buying your first home – here are seven common first-time home-buyer mistakes you should avoid.
1. Not Getting Pre-Approved
This is probably the most common mistake made by first-time buyers, yet it should be the first step in the home-buying process. Before you even start your home search, you need to get your mortgage pre-approved – this way you can know exactly what you can afford and stick to your budget.
2. Not Having a Realistic Budget
Determining what you can afford before buying a home is a very important step, as many first time buyers do not factor in the add-on costs that come with buying a property. Insurance, tax, home maintenance, utilities and repairs are only a few extra costs to take into consideration. It is, therefore, imperative that you find out what other costs are involved and stick to a strict budget.
3. Not Doing Enough Research
Home-buyers should conduct a fair amount of research before starting the buying process. With so many additional costs to consider, it is important to find out exactly what costs come along with owning a home.
4. Not Considering Long-Term Valuation
Often first-time buyers have an idealistic, short-term view of the property they want to buy, meaning that the overall property value (long-term) is overlooked. When conducting your property research ensure that you find out how much prospective properties will be worth in the future – will it depreciate or appreciate over time. Consider the re-sell value of the home by looking at the neighbourhood, its proximity to good schools, crime in the area etc. – this all adds to the overall value of a property.
5. Not Inspecting the Property
It is not advisable to forego a professional property inspection, yet many first time buyers waive this step in the hopes of saving a few Rand. By conducting the inspection yourself you may miss many issues that an experienced inspector would pick up on – this can cost you thousands, in repairs, down the line.
6. Not Seeking Professional Advice
When it comes to signing the contract, there is no shame in seeking out some legal advice. Avoid falling prey to loopholes and vague legal terms that might cause issues later on, instead, consult a legal advisor to read over the paperwork, and ensure that you know exactly what you are signing.
7. Not Hiring the Right Estate Agent
Buying a home can be a strenuous procedure, by choosing the right agent, you can greatly streamline the process. Choose a knowledgeable agent, who you feel comfortable asking questions and who specialises in what you are looking for e.g. type of property and preferred location etc.
If you are interested in buying your first home, avoid making these mistakes and contact Dormehl Property Group, where one of our qualified agents will gladly offer you expert real estate advice and help you find the home of your dreams.
Author: Dormehl Property Group
