Biggest mistakes people make while buying a house | SECCPL

By Mr Rahul Grover- CEO, SECCPL

Buying a house is a huge decision, one that usually comes after years of deliberation and careful planning. But navigating the world of real estate can be tricky and can result in some missteps. To avoid these stumbles and problems, here is a list of common mistakes that people make while purchasing a house:

Not checking for hidden costs:

Cost of purchasing a house contains more than just the price of the property. There are a myriad of hidden costs, bubbling just under the surface, waiting to pounce. From agent fees to society maintenance charges; from renovation costs to home décor fixings, there are many little things that eventually add up to a high cost. So before purchasing the property, it is highly advisable to check all these hidden costs, to check actual viability of the purchase and ability of buying.

Trusting the real-estate agent blindly:

While the real-estate agent is possibly the biggest ally in the search for the perfect home, blind faith cannot be placed on them. The agent may be adept at knowing market trends, property listings and prices, one needs to do their own research in order to make the final decision.

Not getting everything on paper:

In real estate dealings, there have been numerous instances of sellers backing out of the deal, just before completion. This has led to people experiencing huge losses and immense stress. The best way to avoid this entire hassle is by getting all the paperwork done with all the parties involved, not just the seller, but also the lender and agent.

Relying too much on the advice of friends and family:

The real estate market is subject to constant change, and every sale and transaction is different from the next. Relying on advice from friends and family can be disruptive as generally, they will speak of the experience while purchasing the property but will not speak of intimate circumstantial and financial details that are actually relevant. The sale of property differs in every state, and what is relevant at this time is vastly different from a couple of years back. Thus the home-buying experience from two years ago is different from the experience now.

Waiting too long for the perfect house:

One of the biggest mistakes people make while buying a house is waiting for the perfect house. The real estate market is competitive and the chances of getting every desired feature in one house are very slim (unless it is built from scratch). One needs to be clear on the features they absolutely cannot live without and start from there. Otherwise, in the process of looking for the ‘perfect house’, one can lose an opportunity to buy the property they could have made into their ideal home.

Getting distracted by flashy details:

Houses can very easily be made-up to look pretty and perfect. It is crucial to carry out a deep inspection of the house before considering purchase. The basic structure, foundation and bones of the house are its most important parts, without which it will crumble immediately. Check for the quality of these while considering purchase.

Not putting the maximum possible amount as down payment:

Putting down a large amount as down payment significantly reduces the amount one has to pay as mortgage. It is a little problematic, but it is a good decision in the end as it leads to a reduction in time for possession.