Common Mistakes when Buying a Home and How to Avoid them

Owning and buying a home is the dream of many people, but it is a long and difficult process that can exhaust us if it is our first time or if we do not know what to do. Therefore, and to make the purchase process easier, we are going to tell you things to avoid. And  there are common mistakes when buying a home that every future buyer and owner must know yes or yes to make things easier.

Before commenting on the errors, we are going to tell you two factors that affect the purchase of a home, but do not limit it. The first factor is the economic one, in this sense it is good to have a budget limit to access the market . But that a home costs more does not mean that it is not affordable, we can exceed the price as long as we see that the property is worth it, it is a good investment and that we can get financing elsewhere.

The second factor that marks the acquisition of a property is that it is not something that is done every day, in fact, it is the investment of a lifetime and as a general rule most people only buy one property. By this we mean that you must protect your investment by taking precautions and avoiding real estate scams or bad deals. If you know the most common real estate scams, you will  not fall for them and you will be more protected .

Overthinking things

There is nothing wrong with being cautious and stopping to think a bit if the offer in front of us is good or is it a scam. Sometimes, it is an offer and other times it may not be worth the purchase since the apartment / property may have some big and hidden fault or flaw. With this we want to tell you that you should comb the market well and be patient, but it is not advisable to wait too long , sometimes we have an opportunity in front of us and we do not take it out of fear or distrust.

It is normal to have doubts and think about it, but for this reason we should not delay a decision. And this is our first advice, thinking things is fine but not too much.

Not be realistic

Another common mistake that many people make is taking on expenses that they cannot afford . With this we want to tell you that you mark a budget figure and do not go beyond it. Of course, leave a small margin in case an offer appears that you cannot refuse. But what you have to be clear about is that you will be able to face the mortgage and finance the home. So you must make calculations of your income, expenses and the savings you have to know how much you can access.

Marking an economic threshold is fine, but you should bear in mind that the purchase of a flat or home is not only marked by the price but by other aspects such as the location, the condition of the home and whether it is a new or second-hand home . In this case you have to be careful since the price of the renovations can vary from one place to another.

The case of a new home is easier in this sense than a second-hand home since there are no expenses such as reforms and works to be considered. I said, set yourself a cap and do not move from the initial budget.

And we continue with the numbers, a factor that is repeated more than the class struggle. That is why you must calculate before acting . That should be your motto. That should be the mantra you should say to yourself before making such a big decision. Because not thinking about the expenses that that house will entail once you are installed in it (and we are not referring to the money that is destined for the mortgage) is like jumping into the void from a plane with a defective parachute. Gas, electricity, telephone, water, furniture… Crush your calculator and make it smoke before making any decision.

Not knowing how a mortgage works

We understand that the economic aspect is the most important thing when purchasing a flat. If we don’t have money we won’t be able to pay it. And the same goes for the mortgage. Many people think that the cost of a mortgage works one way or that the bank finances everything and then it turns out that many entities only finance up to 80% of the mortgage or even a little less.

Before entering the market, it is advisable to do a study on our economic potential . For this we can go to our branch and do a study to see if they would approve us a mortgage. If we can get the bank to finance the purchase of an apartment, the next thing we must do is compare it with other entities and read the fine print so as not to have problems with unknown clauses that later result in expenses that we did not expect.

Not thinking about the type of mortgage

This is usually a recurring error and should be an issue to be addressed almost automatically. We do not recommend that you buy a home without thinking about the costs that this operation can entail . Going to the bank to ask for a mortgage is not the same as going to the bakery to buy a horn. You have to consider the number of years that you will be paying for the home, without forgetting an important fact such as the following: the fewer years, the more monthly outlay. So you decide the procedure. And do not lose sight of the VAT that you must add to the price, which seems like an appendix that goes unnoticed but is there.

Don’t compare prices

If there is a widespread failure where they exist, it is that of not collecting information. If you do, you will be able to know how the market is and you will be able to assess different options. You will not feel ripped off. You also don’t have to take it as if you were in Istanbul’s Grand Bazaar haggling for pashminas. But if you consult the prices of other homes, you can negotiate the amount to pay without feeling like you are completely ignorant. You don’t need to become a scholar, but being aware of the moment the industry is going through will help you identify a property whose value has ballooned like a puffer fish.

Spend all the money in the house

It is good that we save and spend time and money in the repair of our property. But we must bear in mind that we must leave some capital to furnish it, for expenses and contingencies and that money is easily spent and more on a house. Our advice is to save a percentage of the savings for contingencies. You never know what can happen.

The perfect scenario is not to borrow more than 30% of the income you have. 

Get carried away by the first impression

Whether we are sellers or buyers, the first thing to avoid is being impatient . By this we mean that it is okay to be cautious without going overboard. This is valid both to see apartments and decide to visit them as well as to carry out the purchase process. It is good to know houses and visit them, but don’t get carried away by the first impression.

It may happen that the apartment we are looking at has flaws that we do not know, that we find another one that we like more or that it simply does not suit us. Do not get carried away by the first impression. Think of buying a home as a tattoo, it is for life. Our recommendation is that you see the apartment, and if you like it, wait, if you still like it and tinker after a few days, then you will know that it is for you.

By the way, this works the same to make an offer, do not think that because you like a seller you will make a discount. If we want to buy we must keep cool and not get carried away by feelings or the first impression. Calm is our best ally.

Put emotion before reason

Being guided by impulses is very easy, you just have to let yourself be carried away by emotions until you end up where the current takes you. But that path, although it is simple, does not mean that it is the correct one. Situations have to be analyzed calmly and carefully , because a decision made without you having dissected it until you know its ins and outs can be a wrong decision. You must consider your needs and find a home that meets them. Why do you want to live in a property that is too big for you? Ah! Now it turns out that you want an attic? But if you have vertigo! I think, then I buy, versioning Descartes.

Dismiss the future

Mortgages last so long that they seem to have no end, which is why it makes sense to take a long-term perspective when you feel the need to buy a home . It is useless to acquire a home if after a few years you will need more space because a family member is about to arrive, it does not make sense if you know that there is a more than feasible possibility that in your work you will be assigned to another city. Setting your sights on a certain future is essential if you really want to be the owner of a property.

Paying no attention to the neighborhood

Maybe your house has everything you want: three bedrooms, a spacious living room, lots of natural light, two bathrooms, a terrace, a reasonable price … which has been a bargain. But of course, it is isolated. Or what is the same: it is far from everything. To go to the supermarket you have to drive the car, there are no schools nearby, the connections with other areas are dire. You even have to take a couple of valerians every day when you find yourself stuck in traffic on the way to work! And it is precisely at that moment, as you slap against the wheel, when you have a philosophical revelation and discover that the quality of life also depends on the neighborhood where you live. Big mistake not to find out what the neighborhood is like .

Ignore real estate agencies

Real estate agencies are like sharks. And no, it’s not because they bite. It’s because they have a bad press, a totally unjustified fame. A real estate agency can end up being your right hand when you want to acquire a new property . If before we made reference to the prices of the industry, nobody better than a company that is part of the sector so that you are advised. So you can listen to their advice as if it were Pepito Cricket and it will allow you to find profitable prices.

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