Tag: Budget

House-hunting can be both an exciting and daunting process. The idea of moving to a new home, especially if you’re a first-time buyer can be enthralling and yet there are many pitfalls you can easily fall into when it comes to choosing your new house. Here are some of the most common mistakes you’ll want to avoid when house-hunting.

• Try not to aim too high when looking for a house. If you’re buying through an estate agent, they might throw in a viewing that’s way out of your price range but right up your alley. Don’t waste your time viewing properties that are out of your budget, even if it’s only marginally. You should have calculated your budget accurately and precisely, and even an increase of a thousand dollars can have a negative effect on the rest of your calculations. If it’s too expensive, it isn’t for you. Move on!

• It could be that you find the perfect house for you, but that it’s in an undesirable neighborhood or it could need some major repair work. It’s important not to ignore any flaws in the houses you view, even if they are otherwise seemingly perfect. Small flaws or things that might need renovation could end up being extremely costly, so be wary when on your viewings!
• If you’re house-hunting on a budget another easy mistake to make is to over-compromise. You should make a list of the property requirements you want, such as a garden or off-road parking capabilities. If the property you’re viewing doesn’t have what you’re looking for then you can probably do better. Be realistic about what you’re looking for though, don’t expect a Jacuzzi and swimming pool if your budget won’t allow for it!
• You should also be aware of repair works that need to take place. You might be able to convince yourself that re-tiling the bathroom is an easy task, or that re-wiring the living room is perfectly acceptable for you to do. Try to remain realistic about your handyman capabilities. If you end up buying a house that needs cleaning and renovations you just aren’t capable of, you could end up paying a small fortune.
• Once you’ve found the place for you, it’s time to put in an offer. It’s easy to make mistakes here, so tread lightly. Don’t rush to make an offer if you have any qualms about the property. Take your time when making the final decision – home ownership is a big investment and not one to be taken lightly!

• When you’re absolutely sure you’re sure, you can make the offer. Don’t take too long in making your decision, as it’s likely that someone else has their eye on this property too. Try to ask your estate agent how long the house has been on the market or how many viewings the place has had, so you can figure out how long you have to act.

• The final thing to be wary of is how much you offer. Try not to go too high or too low, especially if you’re aware of exactly how many people are interested in the house. Don’t get caught in a bidding war if you’re new to the property market either, it’s all too easy to get lose yourself in the idea of your new home, without realizing you’ll actually have to pay! Offers that are too low are going to be rejected, but people that are looking for a quick sale may be more likely to jump on them – make sure you do your research!

A big thanks to Ella Andrews for the informative article on one of the biggest & most rewarding financial decisions that you will ever make!