Avoid These Most Common Mistakes in Buying A Home

A lot of people make complaints after purchasing a new house. Too often they find that the home they initially thought was perfect, is packed with flaws and problems. Most buyers were simply led to buying because of sweet talks with a real estate agent. They plunge into making the purchase without even examining the property.

A home is a very important investment. Do not be misguided. Here are the most common mistakes that people do when buying a home:

Buying the house without conducting a thorough inspection of the property. Checking the physical condition of the house is important. Don’t just base your decision on the beautiful exteriors of the house.

Make sure that the interiors are in good condition. Do not overlook the other factors that will affect the quality of your living. Ask yourself these questions:

  • Is the house suited for you and your family?
  • Does it have enough rooms to accommodate the whole family?
  • Does the house have proper septic systems?
  • Are any damages in any parts or rooms in the house?
  • Where is the house located?
  • Does the house have potential to increase in value in the future?
  • What kind of community does it belong to?
  • Does the community have a homeowner’s association? If so, what are the regulations you need to know?
  • Does the house or the lot under certain laws of restrictions?

Not documenting the agreement. Not putting the agreement on a written contract is probably one of the biggest mistakes a home buyer can commit. A home is definitely a big investment and you can’t just rely on verbal promises or agreements when purchasing one.

If there is no written agreement, you will not have any solid reference that the agreement even took place. Make sure that everything is clearly documented and that all parties involved in the transaction have signed the contract.

Looking for a home in a “hot” market. Hot market or seller markets offer a much larger price for a home property because of the high demand. Usually, the prices impressed upon houses are more expensive than their actual value.

To avoid falling for price schemes, do your investigation on the real value of the properties. Do not immediately agree with the initial price that the seller offers. Bid for a lower rate. You’ll find that at the last straw, the seller is more likely to give in to the lower price you want.

 

Obtaining home loans or home equity loans with variable interest rates. When the prime rate of the market goes up which is most likely, your loan costs will also increase. In the middle of your paying period, you might find yourself caught in a mortgage that is just way out of your budget. Better obtain mortgage loans at a fixed rate so that you know how much you will submit until the end of your term.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

1 Comment
  1. Thanks for the post! It is really helpful especially now that I am planning to have a new house I can call my own. I just hope that I won’t have the wrong decision. Especially that I’m having secured loans. When you just need a small loan for a short term, secured loans from a bank aren’t the best way to get the kind of small amount quick cash that would fit your needs.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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