Purchasing a new property is always an exciting time. You’re exploring new spaces and making a completely new place yours for the first time. That being said, buying real estate can be a complex process as well.
There are many, often small things, you need to get right otherwise you could be losing time or money fixing the resulting issues. Here are a few mistakes to avoid when purchasing a new property.
Hit the Brakes!
Humans are passionate creatures. Most of us are very easy to hype up when we’re presented with something we like. One of the most common mistakes people make when looking for a new home or property is rushing things.
If you go looking at properties, and you find something that you really like, don’t close the deal right there and then. Do your due diligence and check everything. Check the property itself, check the paperwork — check anything that can cause problems down the road. Only when everything comes back squeaky clean should you close the deal.
Make Sure to Shop Around
Properties, especially houses, are everywhere. All of us have an approximate idea of where we’d like to live, but that doesn’t mean you should focus your attention on a single block of houses, like a laser. Instead, make sure to shop around. If you’re looking to buy houses in Kansas City, do yourself and survey all the potentially attractive neighborhoods. There’s a chance you’ll find a location that works for you, but you haven’t really considered it before.
Set a Budget and Stick With It
Budgeting is the least fun, but also one of the most important parts of buying a new property. A mistake many first-time buyers make is not setting up a well-defined budget. Or, even worse, going outside a clearly defined one.
Sure, there will be times when you find a house that you just love, but which is ever so slightly outside your estimated budget. Stretching out a tiny bit out of your comfort zone won’t be a bother. However, going well outside your means can have serious repercussions on your future finances.
Keep Your Cool
Real estate is a business, just like any other. Both parties are looking to maximize their positions and get the best possible deal they can. If you’re looking at a house, and you absolutely love it, don’t get too excited in front of the seller.
Getting all excited will tell the other party that you’re more or less hooked. Depending on whom you’re working with, they might decide to use your enthusiasm against you. Because of that, it’s best that you keep your cool.
Ignoring the Neighborhood
We see houses as our own little forts — our safe space and shelter from the outside world. While that is absolutely true, you need to remember that your house is a part of a larger neighborhood.
You’re surrounded by people you’ll have to deal with at some point or another. Ignoring the neighborhood and just looking at a house is a great way to end up in a nightmare scenario. Always make sure that the neighborhood fits you at least half as much as the house does.
Beware of the Hidden Costs
Buying a house can cost more than the asking price. There are a bunch of hidden fees that often catch new buyers by surprise. If you’re taking a loan, there will be loan application fees, all kinds of insurances, stamp duties, and more.
Then there’s the cost of actually moving to your new home. All of these expenses are small, but you better believe they can add up. Make sure to stay on top of every expense and account for every cost when you’re setting up a budget.
Do a Proper Inspection
Doing a proper inspection is an essential part of purchasing a new property. No, your friend Steve who works in the IT department but used to be an electrician two lifetimes ago can’t do the inspection for you. You’ll need a professional building inspector taking a look at your home, top to bottom.
You want someone who is capable of finding flaws and issues in your new home. And you better believe that they will find some. Every house has a few small flaws, but it’s the major ones that you need to look out for.
Arm Yourself with Patience
Patience is arguably the most valuable commodity when shopping for a new property. You’ll need an abundance of it before the day is done. Always remind yourself to be slow and methodical with your decisions. That’s the only way to avoid costly mistakes.