Common Mistakes When Buying a Home | Real Estate Home Network

Buying a home can be an exciting experience for people who are tired of living in a rented home. When people have their own home, they don?t have to deal with the tantrums of the landlord and can make unlimited changes to the decor of their home. However, buying a new home may not be a pleasant experience for people who make mistakes when buying a home. Here are five common mistakes that people make when buying a home and how they can avoided.

Believing the Real Estate Agent

Most real estate agent scare the buyer by making them believe that there are several buyers for the property they want to buy. They will force you to increase your offer to maximize their commission and close the deal. Don?t fall for these tricks and stick to the original offer.

Going over Budget

If you have decided to buy a home, you must calculate the amount you are willing to invest to buy the new home. You must make a list of your income and expenses, and find out the amount you can set aside to pay your mortgage. When preparing the list of income and expenses, you must be completely honest with yourself as wrong estimate of your income and expenses can make it difficult for you to repay your mortgage.

Analyze Cash Flow Projections

There are many people who buy a property to rent out. These people must analyse the cash flow projections when buying a property. Before making an offer, you can ask your lettings agents to inspect the property. This will give you an idea of the rent you can get by letting out your property. When preparing the cash flow statement, make sure you take into consideration factors like repairs, potential vacancy and credit loss. You must also consider the fee you pay the property managers to manage your property. If the rent you receive does not cover your investments and expenses, it is best that you avoid buying the property.

Get a Proper Survey

There are many buyers who avoid getting the property surveyed because they want to reduce their expenses. Getting a survey is important if you want to find out the possible repair work that has to be carried out. There are two types of survey that you can commission:

Homebuyer?s Report

This survey is ideal for conventional properties that are less than 75 years old. Even though this survey is less detailed when compared to full structural survey, they are adequate for properties that use standard material. The cost of the survey is anywhere between ?350-650 and will vary depending on the price of the property.

Full Structural Survey

This survey is usually commissioned by buyers of unconventional property that is more than 75 years old. Full structural survey is expensive because it contains several details that are not included in homebuyer?s report.

The Value of Location

Before you buy a home, it is important that you check the neighbourhood and get the feel of the surroundings. You must check if there are plans pending with the local authority that can cause inconvenience to the residents. Also, check the distance between the property and places like grocery store, your workplace, public transport and hospitals. You must also visit the neighbours to make sure you don?t have any problem with them.

Source: http://realestatehomenetwork.com/common-mistakes-when-buying-a-home/

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