Buying a New Home? Don’t Make Any of These Mistakes!
So the time has come to move out and on to something new – a new home that is! If this is you, do yourself a huge favour and make sure to not make any of these common mistakes that many new home buyers make.
By doing so you will save time, money and heaps of stress – I promise!
#1 – Busting your budget
Shopping for a new home can make you a tad bit giddy to say the least. One viewing after another, in show homes that are typically decked out to the max with optional features definitely gets the blood pumping.
For just a bit more cash you could have those granite counters that you’ve always wanted, and a bit more than that, an upgraded appliance package in the kitchen.
Because a new home may be priced in the $400,000 to $500,000 range that extra $10,000 to $20,000 you could spend on optional upgrades may not seem like such a big deal. But that’s not a game that you want to play.
Ask yourself, what would happen if your income went down or had an unexpected change in employment? Could you afford to continue your mortgage payments and all other expenses?
That extra cash you dropped on upgrades which also increased your mortgage amount could very well be a tipping point if something like losing your job did happen.
#2 – Forgetting about additional costs
Buying a home isn’t just a matter of replacing your rental payment with one for a mortgage. There are a ton of additional costs for maintenance, utilities and property taxes on top of furnishing the home itself.
- See our list of Standard Maintenance Tasks here.
Also, many people tend to forget about things like property taxes and insurance when deciding on how much of a monthly mortgage payment they can afford. Make sure you consider these costs and factor them into your payments so that you don’t end up putting a strain on your finances.
#3 – Not looking at enough properties
This is one of the worst things you can do as a new home buyer as there are a ton of new home builders out there with a ton of different kinds of properties and design styles to choose from. You are selling yourself short if you don’t spend the time to browse them all!
With that in mind, don’t let anyone rush you or pressure you into a decision either. This is a big deal and you’re the boss; make a choice based on your own timeline and when you’re ready and make sure that you have seen enough listings to be 100 percent sure that the one you have chosen is the one.
#4 – Skipping the home inspection
Just because a new home looks like it’s in tip-top shape doesn’t mean that’s necessarily true. It could have structural defects or mechanical issues that would otherwise be caught by a professional home inspection.
Home inspectors are trained to spot the things that you don’t know to look for, like if those cracks in the concrete foundation are something to be concerned about.
As matter of fact, you should make sure that a professional home inspection from a third-party on the property in question is included in your contract and happens before signing on the dotted line.
If you are interested, you could also follow the home inspector as he / she checks the home and learn about the bones of your new home which never hurts to know!
#5 – Not understanding everything in the contract
Buying a new home may just be the largest purchase you’ll ever make. With that said, it’s absolutely crucial that you understand every clause in the contract inside and out, and if you don’t, to ask questions so that you do understand.
For example, you may walk into a new show home and automatically assume that those shiny stainless-steel appliances are included in your package – only to walk in later and find standard models in their place.
Some common points of contention you should be aware of include big appliances like washers and dryers, window treatments, light and bath fixtures and ceiling fans. Replacing one of these things once you find out that they are not included could cost hundreds of dollars – which is no small deal.
Do your due diligence, go through the contract carefully, make sure to ask about any items that are not there and get them added in writing if need be.
- Also see 21 Questions to Ask Your New Home Builder today.
#6 – Not using an experienced real estate agent
Perhaps one of the most important things you can do as a new home buyer is use a professional real estate agent to help guide you through every step of the process.
His / her third-party representation and experience is invaluable in negotiations with the home builders’ sales person(s) and will make sure that your best interests are looked after always.
When buying a new property it is also the builders’ responsibility to pay their commission, therefore, nothing comes out of your pocket. Just make sure to bring your real estate agent along on your first visit to the developers’ office otherwise they may not qualify to get paid!
See my professional qualifications, experience, education and client reviews today on my LinkedIn profile:
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As a top-producing REMAX real estate agent with well over a decade of experience, I promise to deliver only the best level of service, advice and third-party representation to you when buying a new home from a builder.
Call me anytime at 403-370-4180 or message me below. I am looking forward to helping you accomplish your real estate plans!