Many people who buy a new home wish they would have done a few things differently. Whether that means saving more money or putting more thought into the purchase, they believe things could have gone better, and in truth, things could’ve gone better if they had known what to avoid. Today we’re looking at the 4 Biggest Regrets Home Buyers Face and How to Avoid Them.
- Failing to budget.
Failing to budget is one of the biggest mistakes people make when buying a house. Some people have to take on extra jobs or work more just to support their lifestyle after buying a home, while others may end up losing it all and moving in with family members at best or living out of their cars at worst. So what can buyers do? Before you buy, figure out how much home you really can afford – that baseline will help keep your head above water and help ensure things don’t get too expensive down the road. Make a comprehensive budget before diving into any contracts so there are no surprises later!
- Buying a home that’s too small.
While failing to budget may mean buying a home that’s too big and expensive, buying a home that’s too small can also be a regret. Growing families need space, and if their space needs aren’t considered a move may be needed, or they may need a new addition built.
An addition to a home typically costs tens of thousands of dollars. So what can buyers do? They can start by planning ahead sufficiently. This may mean taking extra time to find the right home or renting for a little longer while they see what the market has to offer.
- Failure to research the property and location.
A lack of knowledge about how home buying and mortgages work could be a buyer’s downfall. Buyers may have no clue they can negotiate closing costs which adds to their financial burden. And many home buyers are so eager to buy their first property that they underestimate how much money a lower interest rate will save them in the long run.
Homeownership is a big investment both upfront and long-term. It’s not uncommon for buyers to get caught up with getting their first home, paying less attention to the neighborhood, or skipping vital steps like a home inspection that will reveal costly repairs before they buy it. This can lead them into issues, both financially and emotionally.
So what is the solution? Make sure you do research and use your knowledge. Use the advice of a good real estate professional. Figure out how much your house will cost, or even how much it will be worth later. And have a home inspection before you buy it!
- Failure to save up for your purchase.
There are many costs associated with buying a home, and buyers who aren’t prepared for them are sure to face problems. People often wish they would’ve saved up for a bigger down payment, but opted for the smallest down payment possible.
The National Bank of Canada says it takes Canadians an average of 60 months to save up for a down payment. In some Canadian cities, average home prices are way outside of most people’s price range.
For example, in Canada’s 7 most unaffordable markets, all in British Columbia and Ontario, the average home costs between 1 million dollars and 2.5 million dollars.
Thankfully, the Greater Saint John area is number 1 on the list of most affordable real markets in Canada! Smart buyers in Saint John should be putting away enough money every month to save up as much as possible.
This means that you can sell things or work more. You can ask for help from family and friends, or use your assets to build up a bigger down payment.
If you are a first-time homebuyer, it is possible to purchase a house with a small down payment. But the more you put down on your down payment, the less interest you will pay and the sooner you will be able to pay off the mortgage.