First Time Buyer: Pitfalls to Avoid
Buying a home for the first time is exciting, but it’s also daunting. There are countless pitfalls which can become even an experienced buyer, and having the right people around you, to advise you every step of the way, is vital.
There are some very common pitfalls that tend to come the way of a first time buyer more than any other. To help you avoid them, and at least make you aware of them, let’s check out some of the most common.
Listening to Too Many People
Everyone has a story, and everyone thinks they know best. If you listen to everyone, you’re going to get confused, and then you’ll become stressed. Instead, work out who is trustworthy, who is experienced in the real estate world, and listen to them.
Not Being Prepared
Not doing your research is a huge no no for any buyer, but even more so for a first timer. You need to know about the process of finding and buying a house and you need to know what the process is from start to finish. This will allow you to notice if anything is deviating away from the norm, and will also help you find a property for a good price, rather than paying inflated prices because someone sniffed out your inexperience.
Not Knowing What You Want
Having an idea of what you want and where you want it is vital. Which area is your top choice? Do you need to be near schools? What about road links? Are there any areas you really want to avoid? How many bedrooms do you need? Do you envisage a need for more bedrooms in the future? Create a shortlist and this will make the process easier and less time consuming.
Not Having Enough Down Payment
In order to access favourable rates for a mortgage you need to have 20% of the properties price. If you have less, you might not get a mortgage and if you do, you’ll need to pay costly insurance, which will drive up the price of your repayments. You’ll also be offered higher interest rates as a result. Get saving now!
Jumping in Feet First
Always think about any decision you make very carefully and don’t jump because you’ve fallen in love with a property. Try and see it through negative eyes and assess things that way. Sometimes a ‘dream’ can turn out to be a nightmare, especially if you throw too much money at it and end up not being able to afford your repayments.
Walking Away if Your Offer is Rejected
Yes, it’s upsetting when your offer is turned down, but that doesn’t mean you have to close the door just yet. Can you afford to increase your offer? Be careful that you’re not making an emotional decision, but if you really can, this is something to think about. Are they open to negotiation? Again, think about this too. It’s not always a solid ‘no’.
These are just a few of the most common pitfalls that can become a first time buyer in the real estate industry. If you need any help at all, don’t hesitate to contact us at Ramahi Real Estate Group. We’re on hand to help you every step of the way.