Buying your first home is definitely an achievement, but what happens when that feeling is gone? Eventually, your dream will fade as reality takes its place. Soon enough, you’ll be filled with unexpected costs and surprising discoveries that will soon be regrets. Today, we’ve sifted through advice and data to bring you the 10 things first-time buyers always regret.
10. Ignoring the Neighborhood’s Future
You may fall in love with that quiet street, but did you even consider checking the zoning? That empty lot from across the street may turn into a 24-hour gas station or a metal scrapping business in the later years. That’s a real-life problem you’ll face! With that, learn how to look at the future by investigating local development plans and zoning regulations to avoid giving you problems in the future.
9. Misjudging the Daily Commute
While a weekend drive may make the commute seem fine, have you ever tried it in rush hour? Yup, that’s on mornings and evenings, when everyone around the neighborhood and surrounding communities is rushing to get to their workplaces on time. If you’re eyeing a home, make sure you do a test commute at peak times and try to spend time in the neighborhood at different hours of the day to test the traffic.
8. Falling for the Wrong-Sized Home
Getting the size wrong for a home is one major regret that will haunt you later on. Some buyers regret buying a home too small for the family, while others regret buying something too big, which is costly for maintenance. You may even regret not stretching your budget a bit for a home that fits you and the entire family! When deciding, consider your future needs.
7. Getting Seduced by a ‘Full Remodel’
That “fully remodeled” tag may look like a worry-free home. But what you don’t know is that it may hide shortcuts and questionable workmanship. Even the inspector hired by the seller might miss these home issues. With that, always hire your own independent inspector, even if you’re buying a newly renovated home, to check what’s hidden behind that fresh paint and new floors.
6. Getting Blindsided by Property Taxes
That initial tax assessment may be a lowball offer, especially with newly built houses. But that property tax may quadruple in the years to come. Remember that once that house gets sold, it gets reassessed for a higher price, which may cause the bill to double. That’s a lesson not to rely on the seller’s old tax bills. Learn to research local tax rates and expect that they will jump.
5. Overlooking the Property’s Full History
Remember, the seller’s disclosure is just the beginning. You might find out that the house that you bought was built on a filled-in lake, which causes regular basement flooding. Also, you might need a lawyer to negotiate that surprising $10,000 lien against your home. It’s a lesson to investigate for permits, liens, and crucial information that your realtor might keep from you. Dig into the property’s past.
4. Being Financially Unprepared for Closing Costs
While you focus on the down payment, you forget about the closing costs that typically range from 2% to 5% of the loan amount. These fees might include appraisal fees, loan origination fees, title insurance, and more, which will all come in last minute. Make sure that you won’t be financially drained before you even start a journey with your new home.
3. Taking the First Mortgage You’re Offered
Shopping for a home before a mortgage is a classic mistake for first-timers. You might regret not getting the best mortgage rate, which is a heavy error that adds tens of thousands to your loan. Financial experts advise getting pre-approved and comparing rates from three different lenders to make sure that you won’t overpay in the coming years.
2. Focusing on Aesthetics Over “Good Bones”
It’s no surprise that many buyers prioritize cosmetic upgrades over the home’s fundamental integrity. Yes, we’re talking about the bones of your home where you’d rather have an updated kitchen than new plumbing. This will definitely cause you expensive problems. You see, a fresh coat of paint is cheap, but those foundation issues will drain you financially.
1. Underestimating the True Cost of Homeownership
If you’ve rented for most of your adult life, then you’ll be shocked to know that there an ongoing costs of owning a house. We’re talking about maintenance and hidden costs. Beyond the mortgages, there are property taxes, HOA fees, and homeowner’s insurance that increase unexpectedly. There are also those heavy repairs to keep the house running. Make sure to budget annual maintenance in your home so it won’t give you costly problems later on.