Buying a home is without a doubt the most important purchase decision you will make in your entire life. So it is a decision that you cannot take lightly, and we will show you what are the main mistakes that make those who are going to buy a home and so know what they are and avoid them.
Make a very low offer
Due to the economic crisis during the last years, housing prices have fallen a lot, and it is still possible that they continue to fall. It is normal, therefore, that you try to negotiate the price and thus obtain a good purchase price but also you should not offer ridiculous amounts. The property owner that you are interested in, should know that you are serious and that you are not wasting your time. So before offering something very low, look out for other similar homes in the area to see what price they are selling and adapt the offer.
Have an uncompromising stance
Like any other purchase, it does not do you any good to be inflexible and not to move even one iota of your initial offer. It is a negotiation between the seller, and you and you must evaluate any counter offer that you do and be flexible, without clear, end up paying much more than you can or what the house is worth.
Unfamiliar with the responsibilities as the owner
Once you finish the purchase and you already have your mortgage, your responsibilities are not only to pay the fee of the same, but there are much more. You must know what new taxes you will have to face as owner, such as the real estate tax, for example, what insurance you should hire and take into account community spending and fixed supplies such as water, electricity, and gas in your new monthly expenses. You may be able to cope with the purchase of the house but not the costs of it in the future.
Not knowing the area
You must know the location of the house you are going to buy. If you have parks nearby if you have schools or university if it is well communicated with public transport or you need the car at all times.If you buy a house without knowing the area well, you will regret it sooner or later. It is possible that you have a son and it turns out that the nearest school is far away or that it takes two hours to go to work because of the poor communication of the area.
Hire an agency or real estate agent you do not trust
If you decide to use and therefore hire an agent or real estate agency to help you buy a home, you must trust it. It is very common that many people hire these services but then did not trust the homes they recommend because they think it is the most percentage of commission they are going to take. If you do not trust, it’s best to end the relationship and find another person or agency that will help you. Moreover, getting a title insurance is also recommended not just a real estate agency. Hiring a Florida title insurance company benefits you a lot when protecting your newly bought house.
Buy the first thing you see
It is not a good idea to choose the first house you see. In this case, the love at first sight is not recommendable for buying a house. Visit a few houses before deciding on one. In this way, you will know better what price they are selling, what quality of house you can try to access, etc.
Buy thinking about a future renovation
In many occasions, you buy a house that needs a major renovation and therefore is at a better price. This was quite common in the years of the crisis but is something that currently has its dangers, especially because banks do not give mortgages as high as to cover the cost of renovation. So first investigate if you can do all the renovation you have planned, the conditions of housing not to take you surprises and the total cost of this renovation.
Buy at the budget limit
When you are thinking about buying a house, it is fundamental to have a budget, but it is equally important not to reach the limit, especially in the initial stages of the purchase. There is always some extraordinary expense that you did not have budgeted for and that balanced the budget so that it leaves a margin of 10% -20% of the free budget, at least for this type of contingencies.
Not understanding how a mortgage works
The main resource for buying a home is through a mortgage. Mortgages are often contracted without knowing how they work or even without reading the contract, which is not advisable to do in any financial product but much less on a mortgage. So learn the main features of a mortgage and read the contract in depth if you want to take unpleasant surprises. Avoiding these mistakes will make it much easier to buy a home and always at the best price and avoid many problems.