When you’re ready to start looking at homes to buy, it can be easy to get carried away with excitement.
But before you make an offer on your dream home, do yourself a favour and make sure it’s in good condition—no matter how great the price seems or how much you want it to be perfect.
That’s why it’s crucial to hire a qualified home inspector before you make an offer, especially if you are purchasing the property as-is with no contingencies in place.
Don’t Disregard Your Financial Capabilities.
Buying a home can be an expensive proposition. You need to consider your down payment and closing costs, home inspections, and even furniture if you plan on purchasing it. The more money you can put down upfront, not only does it lower your monthly payments (and thus interest accrued over time), but it shows lenders that you are serious about ownership. Don’t make assumptions; ask yourself how much money I have saved up? How much is my credit score? What are my plans for financing? Make sure you’ve given enough thought to these questions before moving forward.
Do Not Ignore Minor Issues
Sometimes, minor issues will make it harder to sell your home later. For example, you can fix a large crack in your driveway with epoxy, but if you fail to fix it before buyers see it, they may be turned off.
It is also possible that prospective buyers may notice problems with other items on your property if one thing goes unaddressed. Do not risk turning potential customers away by neglecting minor issues that you could quickly fix.
Your goal should be getting rid of your home quickly and for as much money as possible, especially if you plan to buy a new house at some point down the road!
Avoid making unnecessary repairs or ignoring repair issues entirely so you can focus on selling your home sooner rather than later.
Do Not Expect House Flipping without Inspection Expediency
Many investors get fixated on flipping homes quickly and efficiently, but such an approach usually leads to disaster.
One of the main things that can derail an otherwise solid house-flipping project is poor timing. You need to factor in significant expenses that may come up with tax changes and other unanticipated costs.
Once you start work on a house, repairs and maintenance will take longer than you initially anticipated—especially if there’s severe damage underneath what appears to be superficial issues.
Do yourself a favour and make sure everything is covered during your home inspection; it could save you from costly mistakes down the road.
If you’re looking for speedy results, focusing solely on foreclosures may be your best bet (be sure to do your homework before buying one).
Do Not Be Overly Optimistic
Your home is likely your most significant investment, so you want to make sure you know what you’re undertaking.
While everyone is excited about buying their first home, it’s essential to take all the emotion out of the equation and do as much research as possible. Then, when it’s time to go through with an offer on a home, never let yourself be overly optimistic.
As discussed above, making an offer on a house that isn’t fully inspected could lead to thousands in repairs down the road—so definitely don’t take any chances!
Do Not Go into Debt
When buying a home, avoid going into debt. You’re taking on unnecessary risk by taking out a loan for 100% of your purchase price.
If you can’t put 20% down in cash, then take that as a sign that you shouldn’t be in a position to take on that much debt. But, unfortunately, the reality is when it comes to homeownership, what goes up will eventually come down.
It might seem significant to have an asset worth hundreds of thousands go up in value over time. Still, when it comes time to sell and buy something else if your purchase was with 100% debt or leverage, chances are your equity has evaporated over time due to interest charges and property taxes.
A home inspection is one of the most important undertakings you must do when selling or buying a home.