Property Hunting: Pitfalls to Avoid

Searching for a property can be very exciting, but also very stressful! It is usually our biggest financial investment, so can be rather daunting. One way to minimize the stress involved is to consider the possible pitfalls in property hunting and buying. Here are a few to consider:

Panic purchases

You discover a home you like the look of and you find out there are other interested parties and panic. In a bid to not lose out, you overlook important factors such as is the property really suitable for you, and immediately put in an offer. Don't let panic override your senses to the point you are not being rational about your decision. You could end up buying a house you do not truly love, and surely you want to purchase not just a house, but a home. Make sure you are buying something you really desire, rather than just hoping not to lose out.

Indecisive

The flip side to the panic purchase, being too indecisive can cause you to lose out. Fine tune your timing and make sure you get a bid on a property you like in good time. However, if you do lose out on a property you very much liked, don't dwell on it; if you constantly compare it to other properties you look at, this will slow down future decisions.

Overbidding

When there is a lot of competition, you can sometimes make the error of bidding too high, in the hope of guaranteeing the property. If you overbid, well above the appraisal rate, your bank may not approve the higher mortgage amount required. You will then either need to try negotiating the buyer down the appraisal rate or coming up with the additional cash needed. Secondly, when you decide to sell your home, if market conditions are not favorable, you may find yourself significantly out of pocket.

Ignoring flaws

Don't let your love of a property or desperation cloud your judgment regarding flaws. If a property has some major issues wrong with it, be it structural or esthetic, it may take a lot of time and expense to correct, if it is in fact correctable. Keep your senses clear.

DIY enthusiasts

There is nothing fundamentally wrong with enjoying DIY. However, when choosing a "fixer-upper", be realistic as to whether or not you can really carry out the work required. DIY takes time and money and if can cause a lot of stress. If you have a full-time job, chances are when you get home, you are going to want to unwind and relax. A large DIY project may seem doable in theory, but in practice can cause a lot of grief. If you don't have a back-up budget to contract a company for you, consider if taking on the challenge is really worth it.

Remember to note that before going out house hunting, it is a good idea to check with a mortgage company what the top amount of mortgage is that they will offer you. Find out what are the best mortgage loans available, and, if remortgaging, what the best mortgage refinance company is. Then, budget what you can realistically afford. Using a mortgage calculator can help with that, and many can be found for free online, just search for the best mortgage calculator.

If you are planning to buy a new home, The Money Store will help you determine how large mortgage loan you can afford in order to buy your dream home. By using the best mortgage calculator, they help you save money on your home loan today.