From browsing to actually moving in, purchasing residential property can be a very long and exhausting process. With so many aspects to consider and personal preferences in mind, people often make hasty home-buying decisions.
First-time buyers are especially clueless about what to expect when they first decide to buy a residential property and as a result make mistakes. This process requires patience and keen consideration of all aspects because a wrong decision can pose a huge financial risk to the buyer.
It is important that the buyer is prepared for the purchase beforehand to find a place that suits their preference and financial means.
Here are some of the common mistakes to avoid when purchasing a residential property and ways to fix them:
Lack of Research
Before even browsing different houses for purchase, it is important to do some research about the place & the property development company, where you are going to buy a property. It is one of the most common mistakes that homebuyers make. A lack of research about the place you are going to buy, your financial situation and your family needs can land you in more problems than you can think of.
The easy fix top this problem is to first analyze your financial means and get pre-approved for finance before starting to look for houses. Research thoroughly the neighbourhood and location where you are to buy a property. This is important because it not only about buying a property, in fact, it is a purchase of a location too. Check the schools in the area for your children, crime level of the locality and availability of transport in the area.
Skipping Home Inspection
It can always be a tempting idea to avoid the expense of home inspection when the house looks perfect. But, the home inspection is very important when purchasing a property. It can point out problems that are not apparent otherwise.
Before closing the purchase of the house, get home inspections to make sure that there are not any serious problems. This will also help you know where repairs are needed. If you find any problems with the house you can ask the owner to get them repaired or you can also renegotiate the purchase price of the house to cover the repair expense. If you find out that the house needs major repairs, then you can simply give up the purchase.
Lack of Financial Planning
A lack of financial planning is another common mistake made while buying the residential property. There is a big difference in what banks usually tell you about the amount they can finance and what they actually lend you. Financial constraints can ruin your house buying experience completely.
Before starting to browse different houses, determine your savings. Set aside some funds for a down payment of the house and unforeseen expenses that might come your way in the process. You will have to determine how you will manage the mortgage payments in your budget. By keeping a check on all the current expenses and the cost of moving into a new house, you can have a good financial plan before buying a new house.
Going Over Budget
The more expensive the property is, the more appealing it looks to the buyer. This mistake is made by many buyers when they start overlooking their budget, tempted by modern architecture and design. Buying a residential property that is way over your affordability can pose great financial risks for you and your family.
No matter how tempting the offer of the real estate agent is, it is better to always stick to your budget. The bank will offer you a borrowing limit according to your playing ability. This should be your guidepost to your financial limits. You must always spend sensibly on residential property; neither buying too expensive nor going for too cheap.
How to Buy Commercial Property
In addition to buying a residential property, the purchase of a commercial property is also a decision that needs keen considerations. It can be a very good investment if you know what to expect. Commercial estates have proven to have a higher ROI than the purchase of residential properties. Here are some simple and easy steps to buying commercial property:
- Browse and evaluate different commercial property options.
- Plan your financing for the purchase.
- Hire a real estate agent and other professionals like commercial real estate attorney, certified personal accountant, etc.
- Choose a property that suits your needs.
- Analyze and evaluate the deal as a whole.
- Close the purchase
The purchase of a real estate can be a difficult task and involves different risks. By avoiding these common mistakes, you are well on your way to buy a perfect house for your family needs.