Social Pressure : Ten Mistakes to Avoid when Buying Your First Home

Not looking carefully at the numbers, getting carried away when hiring the mortgage or forgetting some basic questions are some mistakes you should avoid if you are thinking of buying your first home.

The housing market goes through one of its sweetest moments of recent years. After a period of almost total drought, the sale of real estate has reactivated again.

Before making such a relevant decision, it is estimated that each consumer spends six months to analyze their real possibilities of purchase and, as stated in a report by Legal & General, the average age of a first time buyer is 31.

Let’s talk about the most common mistakes we do while getting on the property ladder.

Mistake 1 : Thinking that your only option is to buy

The popular expression that “renting is throwing money” should never be taken as a general rule. Neither renting is the ideal option for all budgets, nor buying either. Although acquiring a house will allow you to allocate money every month to get that, finally, the home in which you live is yours, remember that becoming an owner has some additional expenses that you will not normally have with the rent: insurance and other products linked to mortgage, municipal taxes (such as IBI), community expenses, etc.

A recent survey about life according to Society, shown that 46% of people think that they should buy a house on their 20s, but reality is that they cannot afford it until a decade later.

Therefore, before knowing what suits you best, take an account, analyze your situation and, only with the calculator and the paper in your hand, decide which is the best option for your pocket.

Mistake 2 : Wrong calculation of the real cost of buying a house

Before buying a home, you must remember that you will have to face several expenses. The main ones are the cost of the property itself, taxes and processing costs, and the interest you will have to pay to the bank if you decide to request a mortgage. We recommend you to have savings equivalent to 30% of the value of the house you want to buy.

But also don’t forget that you will need some money for renewal and decoration. You will find very useful some tips on decoration with a limited budget.

Mistake 3 : Accept what they lend you

Before taking any decision that affects your personal finances, be sure to make a correct decision. Therefore, before asking for a mortgage, do your homework and don’t let anyone decide for you. As you know, it is advisable not to ask the bank for more than 80% of the value of a home, but you should always make numbers to know if, in your case, you can afford a higher debt.

Mistake 4 : Not properly analyze the area where you want to buy

Before buying a house, you must analyze in detail the areas that you like the most. To do this, make several visits and check in detail issues such as available services (shops, transportation, schools, outpatient services, etc.). You might even consider renting an apartment in the area for some time to understand, whether you like it or not (check for example, these nice apartments for rent in weehawken).

Make a list of what you are missing comparing to your actual house and find a way to replace it.

According to research, only 18% of people are ready to move to a different city to find their dream location, and only 15% would change country.

Mistake 5 : Do not ask the seller the right questions

When visiting the properties that interest you most, take this list of basic questions with you and do not let the seller discuss any other questions that may arise.

• How many visits has the house had? And offers?
• How long has it been in the market?
• Can I see the latest invoice of electricity and gas?
• Have there been neighborhood fights?
• Why is it for sale?
• How many reforms have been made?
• How old is the boiler and when was the last revision done?
• When was the electrical installation last changed?
• Where do sellers move?
• What are the local taxes?
• Who lives up, down and next?
• How long have sellers lived there?
• What does the sale price (for example, furniture) include?
• How do you park?

Mistake 6 : Do not take pictures of the house you want to buy

When you visit the different houses that interest you, it is important that you make your own photos and, even, that you take measurements or ask for a plan with the detailed measures. Beyond the information that the seller himself can provide, this information will allow you to get a totally real idea of ​​the match that you can get to that property.

Mistake 7 : Do not visit the house at different times of the day

If you do not have much time, it is best to visit the house during daylight hours to have a better perspective of the space, the brightness of the rooms, etc. Of course, whenever you can, try to visit the house at different times to check things like noise, traffic and parking possibilities, the temperature of the house, etc.

Mistake 8 : Do not check certain basic things (or negotiate for them)

In addition to asking questions, you should check if the house has any kind of damage or if there is something that does not work well. Once the list of items that do not convince you is made, negotiate with the seller if he will take care of the arrangements or if he prefers you to do it in exchange for a price reduction.

These are the main issues you should examine:

• Check for moisture stains, cracks or any trace of leaks
• Open doors and windows
• Try the electricity switches
• Locate where there are plugs
• Inspect the plumbing
• Test the heating
• Ask about the type of lock the house has installed
• If there is a carpet, examine how the floor is underneath
• Turn on your phone (to check for coverage)
• Examine the outer walls
• Check the orientation of the house with a compass

Mistake 9 : Not talk to the neighbors

It never hurts to try to chat with the neighbors of what could be your future home. This will allow you to know details that the seller will not tell you, check the profile of those who live around you, know if those who live around you are mostly owners (or tenants), know the defects and virtues of the neighborhood with another perspective, etc..

Mistake 10 : Forget if the house has the potential to sell it again

You could think that a first home should not be looked at as an investment. In theory, your usual home should be designed to live in it in the long term and, if one day you decide to sell it, it would be normal for you to opt for something better. Therefore, even if sale prices are going up, keep in mind that so will the one of the new house you want to buy.

In case your economic circumstances change drastically or in case of emergency, you should be ready to sell and don’t lose money on the way.

Final words about buying your first house

When signing the mortgage loan with the bank you will have to take into account the need to hire some related products such as home insurance and life insurance. This will help you obtain a smaller differential, and some peace of mind.

And remember, after all this process that can seem scary, you will finally feel at home, and ready for other challenges in life.