Buying a house is one of the most important decisions in life most of us will ever make. The enthusiasm of securing your dream home can sometimes overshadow the practical aspects, but it’s crucial to avoid common mistakes that could lead to future regret.
Not checking the RERA Number
The RERA (Real Estate Regulatory Authority) number is an official registration number that guarantees the legitimacy of the seller and the property. When buying a home, always make sure that the project is registered with RERA. By verifying the RERA number, you can confirm that the project is legally compliant and is being built as per the required standards. Failing to verify the RERA number can expose you to risks like delayed handover, legal issues, or unapproved construction.
Not getting pre-approved for a mortgage
Getting pre-approved for a housing loan before starting the house hunt is very important. Without pre-approval, you may fall in love with a home only to realize that it’s not in your range of budget. Getting pre-approved gives you clarity on how much you can lend, helping you focus your search on homes that are within your budget. It also signals to sellers that you’re a sincere buyer, which could give you an edge over others.
Ignoring additional costs beyond the listing price
It’s very simple to focus on the listing price of a home, but that’s only the start. Homebuyers often forget other costs combined with buying a house, like closing costs, home inspection fees, property taxes, homeowners insurance, and ongoing maintenance charges. These can add lots of bucks to the total cost of purchasing a home. A perfect thumb rule is to keep aside up to 3-5% of the purchase price for closing costs.
Skipping the home inspection
It’s tempting to skip a home inspection, especially if the property looks perfect or you’re excited to close the deal sooner rather than later. But, this is a critical stage in knowing potential problems that might not be immediately seen. A thorough inspection can show unforeseen or hidden issues with the structure, plumbing, electrical system, or even mold. Without proper inspection, you might end up facing expensive repairs after moving in. Always prefer to go for the home inspection, even if the house seems flawless.
Overlooking the neighborhood
The house might be flawless, but what about the neighborhood? It’s quite easy to just focus on the property, but the surrounding area is equally important. Consider factors such as crime rates, future development plans, proximity to work, educational institutions, health care, public transportation, and amenities. Even if the home is good to go, living in a locale that doesn’t meet your requirements can impact your long-term happiness. Spend time in the neighborhood at different times of the day to get an understanding of the area.
Failing to factor in long-term resale value
While it’s crucial to get a home that suits your needs now, you should also consider how easy it will be to sell in the future. Purchasing a home that is difficult to sell or not considered by a wide range of buyers could make it extremely hard to get back your investment down the line. Main factors such as location, property condition, and the property’s potential for future growth are extremely important when evaluating resale value. Choose a home that is not only a good fit for your present lifestyle but also has features that will make it desirable to future potential buyers.
Overextending your budget
It’s very easy to get carried away in the excitement and stretch your budget to buy a bigger or more expensive home than you can afford. While it’s tempting to purchase a house with all the bells and whistles, overextending your budget can lead to stress and hardship down the road. Don’t forget that your monthly loan payment should leave room for other important expenses and emergencies. Stick to a comfortable price range, even if it means compromising on some things on your wishlist.
Securing a home is an exciting and important milestone in life, but it’s crucial to approach the process carefully and thoughtfully. Avoiding the above common mistakes can help ensure that you find a home that meets both your present and future needs while staying within your financial limits. Best wishes for your house hunting.