First home buyer’s mistakes
Buying your first home can be exciting and scary at the same time. For most, it is the largest investment they will make, and for many it is the beginning of their family home. Unfortunately, there are several first home buyer’s mistakes that are commonly made. Mistakes that may make it a less enjoyable experience. Here are the top four mistakes to avoid to make sure your first home is a memory you will cherish!
#1 of all first home buyer’s mistakes: Buying with emotion
Many house shoppers suffer from “love at first sight” but do not let it influence your purchase decisions! You may love the lay out, or the backyard garden for example, but perhaps the bedrooms are too small, or there is not enough parking space. Making compromises now may lead to regrets later.
The best way to address this is to write a check list of your needs and compare it to the house in question. Make several visits and your initial love will be tempered by your logic.
Spending beyond your limit
When buying your first home, it is easy to misjudge your budget simply because you may not be aware of the costs that come with buying the home, and those that come shortly after. Legal and related expenses, land transfer taxes, prepaid property and tax utility adjustments are just a few of the immediate additional costs. Then take into consideration any renovations, sudden and unexpected repairs, utilities and maintenance and it is easy to see any costs that may be overlooked.
Speak to your real estate agent and they may help advise you on tools you can use to make sure your budget is not overly optimistic. The Canadian Mortgage and Housing Corporation have online tools such as the budget calculators to help.
Being too conservative on your budget
Don’t spend too little either or you may find yourself wanting to move again very soon. In general, lower prices bring smaller homes and by being too conservative in your budget you may outgrow your home too soon. Saving a little right now may cost you significantly more if you have to go through the whole process again.
When making your final decision, think about your future needs. If this house will suit you for five to ten years great! If not, maybe you should up your budget a little and keep looking.
Not doing your “Homework”
Many first home buyers who have lost that first house become desperate and are willing to make that “quick buy”. Making a purchasing decision such as this can be a very expensive mistake. Take the time to find out what is close by. Is there a school nearby, or an industrial park? How are the neighbours? Take the time and get a home inspection. Doing your homework now will uncover any unwelcome surprises.
If you are buying, try not to make these four first home buyer’s mistakes. Memories of your first home should be cherished and regret free. May you have many happy years in your new home, and when it is time to move you know who to call.