Owning and buying a home is the dream of many people, but it is a long and difficult process that can exhaust us if it is the first time or if we do not know what to do. For this reason, and to make the buying process easier, we are going to tell you some things to avoid.
There are 7 common mistakes when buying a home that every future buyer and homeowner should know about to make the process easier.
Before we get to the important aspect, we are going to talk about two factors that affect the purchase of a home.
The first factor is the economic factor, in this sense it is recommended to have enough budget to access the market. However, the fact that a property costs more does not mean that it is not affordable, we can exceed the price as long as we see that the property is worth it, that it is a good investment and that we can get financing on the other hand.
The second factor that marks the acquisition of a property is that it is not something you do every day. In fact, it is a lifetime investment and, as a rule, most people only buy one property. This means you need to protect your investment by taking precautions and avoiding real estate frauds or bad deals.
1- Overthinking
There is nothing wrong with being cautious and thinking a little bit to know if the offer you are getting is a good deal or a scam. Sometimes it is a good deal and sometimes it is not worth buying because the property may have a major defect or hidden flaw.
What we mean by this is that you should scour the market and be patient, but it is not advisable to wait too long. Sometimes you have an opportunity in front of you and you do not seize it because of fear or mistrust.
It is normal to have doubts and to think about it, but you should not delay a decision. That said, it is good to think about things, but not too much.
2- Not being realistic
Another common mistake that many people make is taking on expenses that they cannot afford. This means setting a budget for yourself and not going over it. Of course, leave a little wiggle room in case an offer that you cannot refuse comes along.
However, what you need to be sure of is that you will be able to pay the mortgage and finance the property. Therefore, you need to calculate your income, expenses and savings to know how much you can afford.
Setting an economic threshold is fine, but it is important to keep in mind that the purchase of a house is not only marked by the price, but also by other aspects such as the location, the condition of the property and whether it is new or used. In this case, it is important to be careful, as the price of renovations can vary from one location to another.
A new property is easier than a used property in that there are no costs to consider, such as renovations and construction.
So set a limit and stay within the initial budget.
3- Not knowing how a mortgage works
We all know that the economic aspect is the most important thing when buying an apartment. If you do not have money, you cannot pay it. In addition, the same goes for a mortgage. Many people think that the cost of a mortgage works one way or that the bank finances everything. It turns out that many entities only fund up to 80% of the loan or less.
Before entering the market, it is advisable to do a study of your economic situation. To do this, you can go to an agency and make a study to see if they approve a mortgage for you.
If you get the bank to finance your purchase, the next thing to do is to compare it with other entities and read the fine print to avoid problems with unknown clauses that will later lead to expenses you did not expect.
4- Spend all the money on the house
It is fine to save and spend time and money to fix up your property. However, you should not forget that you should leave some capital for furnishing, expenses and contingencies, because money is easily spent, and even more so in a house or Villa. Even if these are already furnished for the most part, it is always better to have your own furniture because it is sentimental.
Therefore, you should keep a certain percentage of your savings for contingencies.
The ideal scenario is not to go into debt for more than 30% of your income.
5- Letting yourself be influenced and not scrutinizing the market
This mistake is made by many people who think that it is never the best time to buy. That if the VAT increases, that if the house is badly located and a relative doesn’t like it, that if the market has peaked, that if it’s not the right time, these are all excuses we sometimes find, and thinking like this, you will never buy an apartment.
The first thing to do is to have clear ideas and not get carried away by the opinion of others or by external aspects such as market movements or the rise or fall of Euribor. You have to make a decision and act, and for that you have to know the prices and move, that is to say, rake the market and know how it moves and what prices are asked.
Only by knowing what you are up against can you make a realistic decision. Once you have made the decision to buy, don’t hesitate, because you don’t buy a house every day. It is okay to hesitate, but it is not okay to let others and their influences decide for you.
6- Getting carried away by first impressions
Whether you are a seller or a buyer, the first thing to avoid is being impatient. The idea is to always be careful but not too careful. This is as true for the visit of the apartments and the decision to visit them as it is for the realization of the purchase process. It is good to get to know the houses and to visit them, but do not be carried away by the first impression.
There may be aspects of the apartment you are looking at that don’t suit you, you may find another one that you like better, or it may just not be right for us. Do not get carried away by first impressions.
Think of buying a home as if it were a tattoo, it is for life. You need to see the properties, and if you like it, wait, if you still like it and if you still like it after a few days, then you will know it is for you.
By the way, it is the same with making an offer; do not think that because you like a seller you will get a discount. If you want to buy, we must remain calm and not are carried away by feelings or first impressions. Calm is your best ally.
7- Going it alone
In the real estate sector, we often make the mistake of doing without the advice of a real estate agency or buyer’s agent in order not to pay too much to save more. It is not a bad idea to ask for help, even if you have to pay to make sure that the offer we have in front of us is correct and good.
You should know that a real estate agent knows the market like the back of his hand, meaning that he will know immediately if an apartment is worth buying, if an offer is good or even be able to advise you on how to make a counter-offer. They are professionals who will save you time and money and are worth paying to avoid headaches and doubts.
Also, keep in mind that the help can be of different types, it does not have to be a buying commission, it can be partial advice, a session to ask all kinds of questions or whatever you need. Real estate professionals adapt to the services and needs of each client, so it is a good idea and a mistake not to approach them.
Now that you have been warned, do not hesitate to contact us. We can help you acquire your real estate properties in complete security.
