Buying a new home is very exciting. And if you do it right, buying a home can be a great investment. First, however, you’ll need to make sure that the home is truly a good buy. To ensure your new home isn’t a giant money pit, here are four mistakes you’ll want to avoid:
When you buy a car, you have to take into account how much factors like insurance and gas are going to cost you on a monthly basis. If you don’t, you’re not going to have an accurate picture of how much the car is really going to cost you.
The same applies to buying a house. In addition to the price it’s listed for, you also need to factor in closing costs, utilities, homeowner’s dues and property taxes. Even though it can be surprising to see the true total of these costs, doing so will prevent you from accidentally getting in over your head.
Passing on Inspections
Although you should always negotiate to see if you can bring down a home’s listing price, there are certain corners you don’t want to cut. Inspections are the most notable example. While passing can save you a small amount of money, it can also cost you a ton if you end up buying a home that has a severe problem like an issue with the foundation.
Getting Too Close for Comfort
If you haven’t already, calculate exactly how much you can afford to invest in a house. When you sit down and crunch the numbers, it’s crucial that you’re as honest with yourself as possible. Additionally, once you have your number, you need to stick with it. Even though this can be hard to do as you’re looking at lots of different houses, you’ll thank yourself in the long run for not stretching your budget too thin.
For example, if you’re looking at two houses and one is significantly more expensive than the other because it has a pool, you may be better off going with the more affordable one. Not only will this ensure you don’t commit to more than you can truly afford, but you can always add a pool down the line and then protect it with a safety fence from PoolGuardUSA.com.
Jumping Into The Decision
There are a lot of benefits to owning a home. However, as countless people have learned over the last five years, buying a house isn’t something you should do just for the sake of doing it. Make sure that you’re truly ready for the commitment of buying a house. If you or your spouse has a job that may force you to relocate in a few years, hold off – and continue saving money for your dream home. Once you’re fully committed to purchasing a home, congratulations! Enjoy your life as a homeowner.
Michelle is a blogger and freelancer. She’s written about almost every topic under the sun, and loves constantly learning about new subjects and industries while she’s writing. Whenever she’s able to step away from her computer she enjoys spending time outdoors with her dogs.