Owning a home comes with a lot of responsibility that one needs to be aware of. Choosing the right place and the right house is a very exciting process but is daunting at the same time. No one can be approved of buying the right house at the first attempt. There is always room for improvement and being aware of common mistakes.
There are many mistakes that can be easily avoided only if a buyer is aware of them. In this article, we will be focusing on Florida and the errors people make while finalizing the purchase of real estate. We would like to mention some of these mistakes and also recommend avoiding them.
Not Planning for the Long Run
Property in Florida is prime real estate which needs to be planned for accordingly. It is granted that there is no state income tax and Florida but one cannot buy a house blindly. There should be a game plan in mind and it should relate to how one wants to deal with the property.
Even if you think of buying a vacation home and Florida it still needs to be focused with a long term plan. If your first home is going to be in Florida, looking at the potential of the property is a must while finalizing the purchase. The future potential of the house, the economy, and the market need to be looked at closely.
One needs to not only look at the neighborhood but also the related amenities in the home and make the purchase by sinking of what they would want in the future. For instance, a newly married couple should think about their future and if they want to raise a family. Buying a House in Florida is not very complex if one plans in advance.
Their focus should be with public transport and the school district along with other amenities like access to hospitals and shopping malls. There is a chance that the neighborhood is on the way to being developed. In such a case, look at what amenities would be included during the development process. Anyone who does not think long term will be stuck with a property they might eventually want to sell. The real estate agent is the most educated person who can guide you with long term planning and help in the purchase.
Going with the Trend
Do not go with the trend just because it looks nice. There are certain things that should be priorities because of their utility in the home. A house may have everything trendy and a beautiful kitchen. At the same time, if it does not have enough bedrooms or the right ventilation, you should not think twice about moving forward.
Going with the trend would be in advice because everyone’s subjective preferences are different. The easiest way to deal with this mistake is to have a list of your priorities at hand. There are certain factors which are non negotiable and hence the must haves. Then comes the list of things that you would like to have in the house.
This should be followed by everything that you absolutely would not want in your house. All of these factors would be deal breakers and would make the shortlisting process easier. All of these factors together will clear up a picture of the type of house you want which will make the job easier for your real estate agent as well.
Not Budgeting Well
People read about expected down payment costs and prepare their budget accordingly. However the downpayment is not everything that you have to pay for. This is an extremely common mistake which happens across the world. There are many additional costs that are related to the down payment and purchase price. People try to be focused on the down payment and do not think about additional repairs and maintenance of the new house.
One also needs to think about the utility bills and other other issues like taxes and insurance money. Taking a loan can decrease the value of the down payment but it will also increase the interest on the loan. The budgeting should therefore have a buffer value which can cover extra costs so that buying a new house is a celebration through and through.
Not Thinking About Getting Pre-Approved
Getting pre-approved for a mortgage is extremely important and cannot be ignored by any buyer. It removes the hustles from the entire process and makes the bidding much easier. One knows the threshold to which they can negotiate if their loan is pre-approved. It clears a lot of things up and gives the buyer enough foresight to plan their budget. It will be perfect to know how to plan the budget and go about house hunting.
Signing Final Contract Blindly
Whenever there is a legally binding contract involving money, one cannot sign it on pure faith. If someone signs a contract without reading the terms and conditions it is the worst decision a buyer can make. Read through all the details or hire someone who will do it for you. Just because you have discussed everything with the seller does not mean that would translate into the contract.
You need to remain on top of things and see that everything is mentioned and agrees with the negotiation. Having blind trust in someone, especially while buying a house, is an extremely common mistake which can be avoided.
The Takeaway
All of the mistakes mentioned above are directly related to the buyer not being vigilant enough. Not planning ahead and creating a half-hearted budget are some mistakes which can be easily prevented just by raising awareness. Negotiation is an important aspect of buying a property but one also needs to see that the contract involves all the conditions agreed upon between the buyer and the seller. Getting pre-approved for alone is also a must before going house hunting in any neighborhood in Florida.
