5 Crucial Mistakes First Home Buyers Make

Everyone dreams of owning a home someday. This important rite of passage brings with it a sense of independence and security. In addition, a house can be a great investment. The process of owning a home should, therefore, never be taken lightly. The potential for making costly mistakes such as the five listed below is high and as a result, this crucial undertaking needs to be approached with patience, thoughtfulness, and caution.


1) Mistaking a Real Estate Agent’s Friendliness for Friendship
Being friendly to potential clients is part of a real estate agent’s job description, and most of them become really good at it over time. So good in fact, that unsuspecting first time buyers make the mistake of believing everything their agent tells them. What they fail to realise is an agent is only looking out for the seller’s interests and not theirs. The only agent they should believe is a buyer’s agent that they have hired themselves.

2) Rushing to Get a Mortgage
Most people find it hard to raise the capital required to buy a new house and are, therefore, forced to turn to mortgage companies for financial assistance. Unfortunately, some are tempted to sign a financial contract with the first lender they come across in the zeal to buy a home. They then end up paying higher rates of interests than they would if they had shopped around for the right deal from various banks and mortgage lenders.

3) Failing to Seek Professional Advice
First time buyers are usually overconfident and, as a result, rarely seek professional advice on how to go about buying a house. Others feel that paying for such assistance is an unnecessary expense. Considering that an appraisal only costs between USD 250 and USD 500, the savings that can be made by failing to consult an expert are insignificant. In addition, there are many realtors willing to charge a fee for consultation services on issues such as how to negotiate or close a deal.

4) Lacking a Reserve Fund
One of the most common mistakes people make when buying a new home is to drain all of their savings in order to buy what they consider to be their dream home. They often do this because they want to buy a property that is priced higher than they had bargained for. What they should do instead is to have a reserve fund in case of any eventualities.

5) Not conducting an Electric Safety Inspection
It is a well-known fact that electrical faults are the most common cause of house fires in the country. The only way for people to nip this problem in the bud is to conduct electric safety inspections on any home they intend to purchase or have lived in for four decades. An inspection is also necessary before installing a new appliance or conducting renovations.

The valuable inputs put forth by power companies should also be adhered to when dealing with electrical wirings and fittings. It is the work of thorough professionals that can put in an effective solution to the problem.

However, unless you’re a certified electrician, you’ll have to hire an electrician to conduct the inspection. One good way to find a qualified electrician is to ask for references from real estate agents or conduct a search for independent electricians on local tradesmen directories like Plentific electricians.

The decision to buy a home can end up being regrettable if certain considerations aren’t made. However, if you’re realistic about a realtor’s motivation, seek professional advice, stay patient with lenders, keep some money for any eventualities, and conduct a complete inspection of the house, you should be able to find a great home in no time.

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