6 Common Home Buying Mistakes to Avoid
While buying a home many people make deadly mistakes that cost them a lot of money. These mistakes increase the home buying cost. With little information, buyers can avoid paying more than the market value. If you are planning to buy a home then it is the right time to know about the most common mistakes most home buyers make. Here are the top 6 common home buying mistakes to avoid.
Buying home in sellers market
Many people buy a home in seller’s market which is a wrong approach. In a seller’s market home price is always high as there are few homes than the buyers. Due to the limited stock homes prices increase. At the end buyer pays more to purchase a home. Purchasing a home in buyer’s market is highly recommended. In a buyer’s market there are more homes than the buyers due to which prices decrease.
Selecting a bad location
Location is an important factor to consider while buying a home. Price of a prime location home increases whereas price of a bad location home decreases. This is because no one wants to live in a home which has worst location. Always prefer to buy a home which is near to schools, hospitals, commercial centers, business districts and important transportation links.
Buying beyond the budget
Another mistake to avoid is to buy a home which is out of your budget. Big homes with gardens are very attractive but also expensive. If you will buy a home beyond your budget then your mortgage will also increase. Then you will have to pay more on the loan repayment which will upset your monthly budget. So never go beyond your budget to buy a home.
Not looking other homes
Many people buy a home without seeing other options in the market. This is a big mistake which you should avoid. It’s always recommended to visit other homes too as you should have many good options. This will help you in selecting a good home with a reasonable price. Therefore always remain professional while buying and never fall in love with a home.
Not inspecting the home
Normally a new home is flawless as it has sound structure and new finishes. But old homes have many structural and finishing issues. Ignoring these issues will cost you more as you have to spend money on repairs. Home inspection has two major advantages. Firstly it helps in calculating the renovation costs. Secondly it helps in negotiating the right price.
No price negotiation
Some people make high price offer in hurry. They assume that home is reasonable and chances are high that other people will try to buy it. This is an unprofessional approach. Just keep in mind that it takes many months to sell a home. So always make a reasonable price offer as there is always 10% price negotiation margin. As a buyer you should negotiate to bring the price down.