Home Buying: Four Common Mistakes Home Buyers Make

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“If I were asked to name the chief benefit of the house, I should say that the house shelters daydreaming, the house protects the dreamer and the house will allow one to dream in peace”-Gaston Bachelard

Buying a home is not a decision you make on a whim.

It is a significant task that requires you to weigh your options and at the very least, consider the best approach. For many prospective owners, buying a home can be rather daunting. After all, it is not regarded as one of life’s most noteworthy and momentous milestones for nothing. More importantly, it is a significant investment—and for some, their biggest one yet which means this is not a decision that one should make upon impulse. With all that considered, it can be easy to denote your prospective home buying endeavor as an intimidating task, but it does not have to be. Many homebuyers might regard it as an exciting prospect, albeit a rather overwhelming one, but that does not take away the fact that this transaction might be the biggest one you will ever make in your life.

From that alone, you need to ensure that you would approach the endeavor armed with research to guarantee that you would make good, if not better, purchase decisions. Do remember that in the real estate industry, the sellers are most likely to benefit as the scales of power would tip to their side and favor. But that does not have to mean that you are resigned to a position of disadvantage. However, it does mean that you need to tread cautiously when navigating through the waters of the real estate market and go with the best deal available to you. More importantly, it means having an awareness of the possible oversights you might be making in your home buying venture. So, do not immediately go for the first property you see and expand your options first. In any case, here are some of the most common mistakes most homebuyers commit and which you should incidentally avoid:

1.) Not doing enough research

  1. One of your foremost responsibilities in the prospect of buying a home is to do your research first. It does not matter whether you are in the market for a condo for sale in Quezon City or elsewhere, you need to understand what your family’s needs are and align that with the most appropriate property and neighborhood. Furthermore, you need to have a thorough understanding of your financial state to make better purchasing decisions. Apart from ensuring that your list of potential properties would fall within your budget, it also mitigates the possibility of disappointments stemmed from unmet expectations. After all, knowing what you can afford beforehand can significantly prevent you from falling in love with properties that fall beyond the scope of your budget.

2.) Choosing the wrong mortgage

Having the appropriate mortgage puts you in a better negotiating position. For optimal results, it is pivotal to have your loan pre-approved and not just pre-qualified before you go on your house hunting jaunt. Know how much you can afford and how much more you would need. Determine how much you would and can borrow and get a loan. Remember, there is a significant difference between what banks would indicate they can lend you and what they eventually will. In this regard, it is best to be a little meticulous in the finance packages you choose. Moreover, go to as many banks as possible or use an independent finance broker who has a myriad of finance products and access to a range of lenders.

3.) Choosing homes beyond your budget

It is very likely that you would fall in love with a home that is beyond your price range. Unfortunately, such a scenario can only lead to disappointment and frustration. But that does not mean that you should give in. You need to keep in mind that even if buying a home is your single most important investment at the moment, pooling your entire monetary resources to spend for it can potentially derail your finances in the future. It is normal for us to want something that is a little beyond what we can afford, but that does not mean we should give in to our wants and indulge the temptation. Keep in mind that the bank offers you a borrowing limit for a good reason and it is based on your ability to repay the loan you applied for. Always consider that whenever you are looking at potential properties and feel the impulse of going for something that is beyond your budget.

4.) Falling in love with properties

You will inevitably fall in love with a property in your search for a home. However, when you find a house ideal, do not make the mistake of letting your seller’s agents know. Apart from that, do not make it obvious as they are incredibly adept at reading your emotions. As a result, they would try to squeeze every last cent out of you knowing full well that you are interested in the property. Keep in mind that there is a myriad of properties out there, and there is bound to be one that would not only meet your needs but will be priced right as well. Do not bend your back over for a property you cannot afford. Keep looking instead.

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