When you are on the journey of buying your dream home, a lot is riding on the line. Buying a home is a great investment, likely one of the biggest that you will ever make. For this, you need to precisely understand your current requirements and anticipate your future ones and in accordance with all that you need to find a dream home that fits the requirements well. While buying a home, always remember that you should not only find a house that fits the bill in terms of not just looks but size, price and location.
It comes as no wonder that house hunting can take anywhere from 6 weeks to 6 months, or more. With a lot at stake, house hunting in India is not a process that you can easily wing and hope for the best. Obviously, the house hunting experience of every home buyer in India is going to be different. Some homebuyers go into the process knowing exactly what they require and how they intend to get it. In contrast, others are pretty less sure on one or both fronts. Irrespective of your starting point, successful and flawless house hunting is possible, but only if some common mistakes are avoided.
So, in this article, we will grab an understanding of top house-hunting mistakes that one must avoid.
1. You are going alone
Going on a house hunt without a real estate agent can be appealing, but going alone can sometimes go wrong. Listings are all online anyway, then why not save the commission, right? However, house hunting alone can mean missing out on your dream real estate, and you might even spend more.
There are a handful of reasons why having a real estate agent by your side is a smart move. For newbies, a professional agent will be a true expert on your local real estate market. And likely, the real estate agent will have some useful insight that can help you narrow in on your best options. Also, real estate agents have access to a broader range of available listings than what you will find online.
2. You are not being open-minded
Not being open-minded is another mistake that one must avoid on the journey of house hunting. If you ever find yourself immediately passing on the home options just because they don’t look right, or if you are constantly nit-picking and finding something wrong with each home that you go for a showing, you must try to reframe your attitude a bit. It does not mean that you have to compromise on the things that really matter, but you should try to have an open mind when it comes to things that can be changed or modified with just a coat of paint.
3. You didn’t get a mortgage pre-approval
It is a competitive market out there, and anything that you can do to position yourself as an excellent homebuyer is a good idea. Getting a mortgage pre-approval is beneficial for two reasons. Firstly, it tells you exactly how much money you have to actually spend. Secondly, it lets home sellers know that you are good for your offer. Both these benefits will get you a bit forward on the playing field.
In an ideal sense, you must get the mortgage pre-approval before you start house hunting, though you can do it after you have started too. For getting a mortgage pre-approval, you are required to fill out a loan application and provide critical documents related to your income, assets, debt, credit history etc. A mortgage underwriter will verify all your documents and tell you how much you are eligible to borrow.
4. You are allowing others to get in your head
House hunting is a personal decision. If your relatives are not going to be paying for it or living in it, then you should not give much weight to their opinions. Nobody knows what you want in your dream home better than you do. If you find yourself being talked out of something that you really liked or being pressured into prioritising a home amenity that is least important to you, then chances are you allow others to get in your head, which is actually a big mistake most homebuyers actually commit.
5. Not knowing what you can afford
Another house hunting mistake that one must avoid is not knowing what they can afford. Once you have fallen in love with a particular property, it is hard to return. You start dreaming about how great your life would be if you lived in such a premium villa. However, if you cannot afford that villa, you are just hurting yourself by imagining yourself with your family in it. So, to avoid temptation, it is advisable to restrict your house shopping to real estate in your financial neighbourhood.
If you look up house options beyond your budget, you will end up lusting after something that you can not afford. And this will ultimately put you in a risky situation where you will try to stretch beyond your means financially or cause you to feel dissatisfied with what you actually can afford.
Buying a home is a significant decision but does not have to be challenging. However, since it is natural for the emotions to come into play, you need to make sure that you are making a rational choice rather than getting wrapped up in the motion of a dream house. In a nutshell, be realistic and take your time when it comes to house hunting and make a house purchase decision that is best for both your finances and feelings. Also, the “house hunting mistakes that one must avoid” listed above will surely help you go on the right track.
Also read: How To Buy Property Without A Broker