Buying a new home should be a utilitarian process. You should consider the property’s features and location and how that will impact your life. Unfortunately, it often devolves into an emotional process. You want a house just because you like it, not because it serves any practical purpose in your life.
When buying a home, your aim isn’t to satisfy your emotions. Instead, it’s to choose somewhere you can reasonably live, given your resources, work and family needs.
In this post, we take a look at some of the most common mistakes that people make. Mainly, people get into trouble when they let their hearts rule their heads.
Mistake 1: Not Knowing What You Can Afford
Buying a property is just as much a personal decision as it is an economic one. You want to choose somewhere you can imagine yourself living long-term, but you also need to live in accommodation that you can afford.
Many people underestimate the cost of living in a larger home. It’s not just the mortgage payment, but all of the maintenance that goes along with it too.
As a general rule of thumb, set aside 1 percent of the purchase price of your new property for upkeep costs. So, for instance, if the property costs $300,000, expect to pay around $3,000 in annual maintenance. (Things like boiler repairs, replacing worn fittings and so on).
Mistake 2: Thinking You Have The Best Deal When You Don’t
A lot of people believe that they are getting a good deal on a new property, even when they aren’t. Always check the local area for similar homes to see whether the one you want represents the best value for money. You can use local prices as a negotiating tool, helping you undercut the asking price.
Mistake 3: Failing To Hire An Agent
If you really want to ace interstate moving, then you’ll need to hire an agent. Agents actually have to follow a rule that they will always act in your interest. So when you hire one to view a property with you, they will be able to tell you whether it offers you good value or not.
Mistake 4: Failing To Consider The Long-Term
Many people believe that properties should work like other goods and services. You should be able to buy a home, just like a brand new car, and expect it to work flawlessly.
Unfortunately, this approach often means that people miss out on good deals. Unless the property is brand new, it will always require work. Thus, your job is to have a vision and think about what the property could become in the future with the right work done on it.
Many problems are cosmetic. Things like cracked paint and dirty walls are easy to solve. Bigger problems, such as subsidence, damp and damage to the roof are best avoided.
So there you have it: four major house hunting mistakes that everyone makes. When choosing a property, go with your head, not your heart. If you don’t, your quality of life could suffer.
