Finally purchasing your dream home could be exciting, but letting it get in the way of being careful and cautious might cause you more than what you’re prepared for.
We’ve been hearing stories about Filipinos rushing to buy properties, especially houses, and later on regretting not slowing down or considering their decision very carefully. It might be due to urgency and lack of time, but if one is going to spend on one of the biggest purchases of his or her life, an ample amount of time, research, and caution are definitely necessary to avoid living with regret every day.
Any family would want to buy a budget-friendly home that will give them a lifetime of happiness and contentment. To make sure your next home is one that you’ll cherish for a long time, here is a list of mistakes to avoid when buying properties.
1. Being blinded by the beauty of a house
Purchasing a house for the sole reason of it being beautiful will never make sense. The beauty of a home does not equate to its quality and ability to provide you and your family with the ideal dwelling place. Yes, you will have that lovely front porch, but what will be its use if it offers you no picturesque views. The house you’re looking at could be as breathtaking as a model house, but the foundation of a happy house does not rely on looks alone.
2. Succumbing to wants more than needs
Plenty of homebuyers stretched their budget to the limit to purchase a home that has a lot of extra features they won’t really use. It is indeed nice to have additions, such as a powder room, a four-car garage, another master bedroom, a bar area, a fireplace, and balconies. But if you can live without them, then you don’t need them. It will be a better decision to get a house equipped with only what you need.
3. Deciding on a property in a haste
All properties require a considerable amount of money. It would be a waste if you spend a large portion (or all) of your savings on a home that will make you feel upset in the future because you discovered something unpleasant one month after signing the contract to sell. It could be a flaw in its structure, its history, its environment, its foundation, pests, or even if you realized that you’ve been duped into buying it. Doing everything in a rush tends to make you leave out actions required to ensure that what you’re buying is worth every cent—and that it promises a happy and good future for your family.
4. Not doing market comparisons
It is essential to make sure you have made a comparison of every possible option in the area you’re looking at. There could be a better and more pocket-friendly property located just one block away. Aside from the actual state of a property, there are a lot of factors to compare and consider, like accessibility to your workplace, schools, hospitals, and markets; history; environment; and its actual location. It is suggested to compare as many as possible to find the one that fits your checklist the most.
5. Skipping appropriate inspection
Water damages on the ceilings and walls are one of easiest house flaws to conceal.
It is advisable to consult a professional to assist you with home inspection. He or she will scrutinize every detail of the property to determine if there is anything that needs to be repaired, renovated, removed, or replaced before moving in. He can state the property’s potential and quality, as well as its risks and dangers that should be remedied. With the help of this professional’s thorough assessment, report, and advice, you can decide if the property is really worth buying or not.
6. Neglecting to have a pre-approved loan
Having a pre-approved loan is crucial before you go house-hunting. Knowing how much you can afford with the bank’s help before you go looking for your new home can save you a lot of trouble. Also, you will have a clear idea of how much you should pay monthly, thus letting you have an overview of what your future financial statement would look like.
7. Going beyond budget
However appealing that property seems to you, it is unreasonable to go beyond your means just to have it. Buying a property that’s way out of your price range will take a toll on your finances. Allow yourself to have a financial allowance, so when future events demand that you shell out extra money, such as increases in interest rates or even emergencies, you will have something to save you and keep you out of debt.
8. Forgetting the cost of design and renovation
Another reason to stick to your budget for a new house is to have enough money for designing, furnishing, or renovating your new home too. Take note that acquiring a new home does not end at just purchasing a residential property. There are still a lot of things to be done before you can claim it as a livable space, so make sure you have money to spare.
9. New home, new everything
Just because you have a new space does not mean you have to buy a whole new set of furniture, appliances, and other home needs. A new home does not require you to purchase the latest from the top-of-the-line brands. It won’t hurt if you bring some or all of your stuff from your old home to the new one. You can even have fun and be creative in thinking of ways to repurpose your old stuff. There could even be pieces that can be used to accentuate parts of your new home.
10. Disregarding after-sales and maintenance fees
If you were to buy a new property, it might get so exciting that you forget to take its maintenance fees into consideration. The bank could have allowed and helped you purchase your dream home, but what about the after-sales fees that won’t be covered by the bank? For instance, a larger home could translate to a higher electricity and water bill. If your new abode belongs to a condominium or subdivision, you could be looking at condo fees or homeowners association dues. Suddenly having a swimming pool or a lawn could mean needing the services of a maintenance company. And depending on the property’s size and market value, your annual real property tax might go up as well.
11. Not putting everything into writing
Once you and the seller or agent have decided and agreed on something, it’s important to always include it in your contract to make sure that both parties comply. This way, there will be a clear and legal agreement on how the transaction will take place. You should never rely on verbal agreement as there is a possibility of one not keeping his or her promise. A signed written agreement will also let you know what are and aren’t included in your purchase.
12. Only scanning through the contract
Contracts must be well-read and studied. Get the help of a professional to fully understand what you and the seller are agreeing to.
Knowing what’s written on the contract is vital. Aside from clearly knowing what’s included with your purchased property, you can check if your rights are protected. If you’re unsure how a contract goes, it is recommended that you consult with a lawyer to advise you. Let him or her check if there are any clauses against you and your rights. Furthermore, if you want to alter or add something to the contract, he would know what to do.
To give you a wider selection of houses for sale, MyProperty.ph has prepared a list of houses for sale just for you.
Photos are from shutterstock.com