Avoid These Common First-Time Homebuyer Mistakes
So, you’re moving out of your parents’ house and live the life you want for your own. Good for you! But, experiencing your first home shopping can be daunting, especially when making big decisions that could leave you with regret later on.
If this is your first dip in the real estate market, know these homebuyer mistakes with tips from our top brokers.
Tips to avoid homebuyer mistakes
Being a first-time buyer is overwhelming. That’s why we’ve collated these tips, so you would know what to expect and how to act on it.
Not deciding on a budget
Many first-time homebuyers start shopping right away without setting a budget. It’s a common mistake to think only of the upfront fee and forget the interest and monthly payments to come.
- 50% of income is set on essentials like groceries, utility bills, household items, and even home loans or monthly payments
- 30% of income will go to ‘wants’ like a new dress, books, dine-outs, etc.
- 20% of income should be allocated to savings
How much are you likely to spend on a home purchase? Some properties will costs you P5,000 to P18,000 a month. Can your budget fit for buying your new home? The best rule to save money for your monthly payment is to set aside 30% for home loans and needs.
No lists of what you want in a home
Of all residential spaces, why do you want that particular house? List down what you want in a home and it’ll save you time when gone for home shopping.
Here are the factors you might want to take note of:
- Property type and size
- Safety nets
- Location and accessibility
Search for properties that you ought to buy within a reasonable price range. You can start researching on your own or enlist the help of a real estate agent from Arreo Contractors.
Not arranging a home inspection
What you see online might be different than it is in real-time. Contact your agent for an ocular visit to your desired home. House tours are a great opportunity to inspect the property, but to explore the neighborhood as well.
This step will take you the longest as there are many houses to search for. Take into account the amenities, structural damages, and fixer-uppers you intend to do once you’ve moved in.
If you’re working with a real estate development, it’s also the perfect time to ask them about their company, portfolio, and past clients. This ensures the credibility of your broker as well.
Not considering the hidden costs of having a home
Aside from your monthly payments, most first-time buyers brush aside the hidden costs of owning a home. These costs include:
- Property taxes
- Maintenance and repair
- Utility bills that come with the electricity and water system
- Moving costs
- Furniture, decors, and accents to use for the home
When you don’t anticipate these costs, you’d tend to go over your monthly budget for your new home. Get a better idea of what you’ll get when asking the previous owner or real estate agent about the home you’re buying.
Thinking about your new home?
Shopping for real estate as a first-time homebuyer is scary and thrilling at the same time. There may be potential pitfalls, but, if you’re equipped with the knowledge to avoid these common mistakes, then you’re ready to commit.
Purchasing a home isn’t as simple as you would make. Contact the best players in the field to help you find the perfect one you’d want to have for life. We, at Arreo Contractors, want only the best for you at these trying times.
Call (+63) 02 8365 7430 or send an email at firstname.lastname@example.org and we’ll take care of your needs.