First-time homebuyers are prone to big failures. Every year, first-time home buyers venture into the real estate market and make the same mistakes that people usually make when they buy their first houses. Buying your first home comes with many big decisions and strategies. This process can make the home buyers feel different emotions. They feel excited at a time and are nervous and scared at other times. It’s very easy to get gouged up in the gale of home shopping and make mistakes that could leave you with buyer’s remorse later. This phenomenon is natural as it is human nature that we get confused when given multiple options and choices and tend to make mistakes.
Avoid These Mistakes While Buying a New Home
To avoid these mistakes it is better to know the strengths, weaknesses, risks, and opportunities of buying a home in a particular housing society. This knowledge will prove itself to be very useful to you as a buyer. Your decision-making capacity can improve and it’s really important to get tips from knowledgeable sources that are well known for the consultation for the matters of real estate for example Pakistan Property Services so that you could enjoy the opportunity life has to offer you in the form of the new home.
This is a beginner-friendly guide that can help you for making the decisions about buying your new home. Here are some common errors and how to steer clear of them for a prosperous decision.
No Idea About Affordability:
It is very difficult to buy a house without knowing how much house you can afford. Without deciding, you are bound t waste both your time and money. Most people look for a house that they can’t afford and are very much influenced by it. When the time for payment comes, they are unable to pay for the property in cash and installments. It is best to look for and visit only those houses that are in your price range only.
For many first-time buyers, the goal is to buy a house on a loan or with a comfortable monthly installment that lies in their price range. But getting a good loan on a low interest and small monthly installments is also very important otherwise it becomes very difficult for the buyers. Buying a more expensive home than you can afford can put you in tough financial times. Your monthly budget for other bills and expenses will also decrease, reducing the standard of living.
What to do Instead:
Decide on what monthly payment you can afford rather than achieving the maximum loan amount by the bank. Every borrower’s case is different, so establishing your whole financial profile when determining how much house you can afford is very important.
Small Down payment
Most banks give the loan package to their customers for a zero down or 3.5% down payment. It is sufficient in some cases but not always is the case. Usually, homeowners have regrets after paying a small down payment. Small down payment can lead to the big monthly installments that are difficult to be paid by a common man.
People with a great vision always try to pay a larger amount for the down payment after saving up. The rest can be helped by the loan. The key factor here is making sure that your down payment secures an affordable monthly house payment later. People who want to buy a home should first save up for 3-4 years.
How to Avoid this Mistake:
Figuring out how much to save is the main reason for whatever decision you make about the property. A bigger down payment helps you get a smaller and affordable monthly installment plan. The solution here is to make sure your down payment helps you secure a payment that you’re comfortable making each month.
Focusing more on the house over the community
The new buyer wants to buy a home that fulfills all the requirements on the wish list and meets the needs of the buyers. But this leads to short-sightedness if you don’t focus on the surroundings and the society, the buyer will live in. the hastiness can lead you to live in a neighborhood you don’t like or does not match your requirements. You could end up loving your home but hating your neighborhood.
Selecting the right society is very crucial to your life and its development and standards. The goal is to find you and your family a place that holds the norms and values that you have. If you choose a good environment and a society, you can always construct or renovate to whatever you like.
What to do Instead:
Ask your real estate agent to help you track down the neighborhood safety stats and the daily life ratings such as how accessible is the society from other main places of the city, the facilities there, the level of traffic in the area as high traffic does not make the life serene, and the overall vibe to see if the society appeals to you or not.
Making Decisions Based on Emotions
Buying a house is a major life milestone for anyone. This place not only gives you shelter from the external environment but this is also a place where you’ll make memories and design the space that’s truly yours. After a time, it’s easy for the residents of that space to get too attached to the space and make emotional decisions. It is important to remember that you’re also making one of the largest investments of your life that involves a lot of things. The problem arises when the buyers want their rented homes to be their own homes. Many of the first-time buyers bid over what they are comfortable with as it is taking them longer than usual to look for new homes that fall in their budgets. These emotional decisions could lead to overpaying for a home and stretching your budget to a great extent.
What to do Instead:
Have a budget and stick to it and don’t become emotionally attached to a home if it is not yours.
Not Picking a Real Estate Agent
A good real estate agent will help you negotiate a better deal as he knows about the market trends better than you. For first-time homebuyers, a real estate agent is very important to be consulted about the decisions you are thinking about. This real estate agent should be a part of or own itself is a reputable agent in terms of giving out good ideas.
Most first-time homebuyers don’t bother looking for a real estate agent that can help them or try to settle for less. This decision only deceives the inexperienced buyers into paying a higher price for a cheaper home. However, having a good real estate agent by your side would help you out to a great extent. They can help you by collecting the information of the vast real estate market but also help you negotiate and close the deal better.
A real estate agent would handle the difficult process of the required paperwork. They might also notice things that you won’t during house inspections and give their honest feedback. First-time homebuyers will be also helped in the assortment of all their financial details and in finalizing their price range for buying a house by the real estate agents.
The real estate agents of Pakistan Property Services are also very capable and are well equipped with the current market knowledge of their fields. We provide you a better consultation for your decisions relating to real estate.