When you make a purchase you’re not pleased with you’re overwhelmed with a sense of brief yet understandable sadness. This is called buyer’s remorse. It’s one thing to buy a pair of pants and be disappointed by the way they washed because jeans are a relatively inexpensive purchase. However, when you’re buying a home the last thing you want is to feel is as if the purchase you made was the wrong one. Avoid these harsh home buying lessons and you’ll stay clear of buyer’s remorse.
Lesson #1: Don’t fall for love at first walk-through
It’s easy to get swept up in the allure of owning a new and more spacious place than your current residence. However, the more you fall in love, the more blinded you become about how costly the home is or how good of condition the home is in. Keep your head on your shoulders when you’re looking to make sure you find a home you love, is in good condition, and is in your price range.
Lesson #2: Buy a home you can afford now and later
One of the biggest mistakes people make is buying a home they can afford in their current financial situation. If you and your significant other are both currently working you can probably afford a much larger home. What happens if you want to have kids, or one of you can’t work for a while? Examine whether you can still afford the home in a year, or 5 years, when unexpected life events happen.
Lesson #3: Consider future wants and needs
Along with understanding how much house you can afford now and in the future, you will want to figure out what your needs and wants are for the future to determine the kind of home to purchase. If it’s just you and your significant other right now, figure out how long it will be until you have kids, if ever, if the home is big enough to support a family, and if the home is located in a decent school district. Think future when finding the perfect home.
Lesson #4: Use seasoned professionals
It’s best to use a professional Realtor when searching for a home as they’ll be the objective third party in your transaction. Although it would be nice to trust every seller you’re considering buying a home from, it’s easier to hire a professional you can trust. When searching for a Realtor, be sure to ask for their qualifications.
Lesson #5: Down payments are never a bad investment
You just found out you won’t need to pay a down payment on your home. Some might make a down payment anyway to start building equity. Others may invest their down payment money some place where it would gain interest.
Both ways are fine, but investing the money can be much riskier since there is a chance the money could be lost. If lost, it means the money is gone and there is no equity. When making the decision, remember investing in a down payment is never a bad option.
Lesson #6: Don’t feel pressured
You’re under enough stress as it is when finding a home, so don’t feel pressured by anyone, especially a Realtor to make an offer. If your Realtor claims others have looked at the home you’re in love with and they’ll be making an offer soon, you don’t have to place an offer if you still want to see what other homes are available or you have hesitations.
Lesson #7: Budget, budget, budget
When you’re figuring how much house you can afford, make sure everything’s accounted for. This includes monthly mortgage payments, estimated electric bill, property taxes, HOA dues, if you’re considering an HOA community, etc. Make sure to factor in any renovations you wish to do as well or money for emergency repairs in your new home. Oftentimes these expenses don’t get calculated into the budget and can be surprise costs after you close.
Lesson #8: Buy a house that fits your life
You may have had a dream to own a large house with a spacious backyard where you could grow an abundant garden. However if you’re the type of person who would never want to spend time doing chores or keeping up with yard work then choose a smaller home that’s more compatible with your current lifestyle. If you didn’t enjoy gardening before, you probably won’t enjoy it if you have a larger place.
Have patience
Perhaps the most important lesson you can learn is to simply have patience. Don’t rush into buying a home without feeling fully confident it’s the house you want. Be patient and you’ll end up with a home you love instead of a house that fills you with remorse.
What tough home buying lessons did you learn?
