Buyer Beware: Common Mistakes New Home Buyers Make

Despite the impact that Covid has had on many industries, the real estate market has been booming in 2020. Unfortunately, since the housing market is so competitive, it’s quite common for new homebuyers to make rash decisions and rookie mistakes. 

There is a lot of emotion involved in buying a home—but don’t rush into a decision out of FOMO (aka “fear of missing out”)! Your top priority should always be to find a house that fits your family’s needs and budget.    

Whether you’re looking for a new home there are several internal problems that new home buyers don’t catch before it is too late. Keeping these tips in mind could save you a ton of aggravation in the home buying process. 

Common Mistakes to Avoid When Shopping for a Home

Basic Tip: Focus on The Basics! 

Although it’s always tempting to judge a “book by its cover,” professional real estate agents caution against focusing on a home’s “cosmetics.” To continue with this metaphor, instead of focusing on a home’s “makeup,” be sure to look into its “skeleton.” Fine paint jobs and state-of-the-art appliances may be nice, but you need to be sure they’re built on a solid foundation.  

This may sound like common sense, but you’d be surprised how easy it is to fall for a home’s outside appearance. Conversely, some people give up on a great deal simply because the carpet doesn’t suit their style.    

To help you stay laser-focused on what matters, break out a pen and paper and write down essential considerations for your new home. Focus on features like electricity, HVAC, and plumbing. It’s also crucial to figure out how old the roof is and whether this house could comfortably fit your family.  

As for issues with the lawn, carpeting, or painting, please keep these on the low end of your list. It is far easier (and cheaper) to change these issues than it is to deal with a sewer line blockage!  

Don’t Trust “As Seen On TV” Renovation Prices

Have you noticed a recent surge in reality TV shows that focus on home renovations? While these programs may be fun to watch, they aren’t the best source of advice for renovation costs. Indeed, many relators nowadays say new homebuyers have unrealistic expectations for how much renovations will cost them. 

In most cases, you’re better off assuming a contractor’s estimates are well below what the actual price will be. In fact, some real estate brokers recommend doubling the cost of whatever estimate you receive. 

It’s also important not to rely solely on the numbers you get from agent-recommended contractors. Consider asking for a second opinion from another trusted contractor in your chosen area. 

Don’t Let Termites Take A “Bite” Out of Your Deal! 

Unfortunately, termites are an all-too-common problem. Indeed, the Heterotermes aureus species can cause extreme damage to homes if exterminators don’t catch an infestation soon enough. Indeed, recent statistics suggest termites cost over $5 billion in property damage every year. 

Unfortunately, most homeowner’s insurance policies do not cover termite invasions. Even worse, standard home inspections usually do not include a scan for pests like termites.

To avoid paying for a house with termites, you need to research an inspection known as a “WDO.” Short for “Wood Destroying Organisms,” WDO tests are your best defence against pests like termites.  

Don’t Forget to Ask About the Water Heater! 

A common question that homebuyers fail to ask is how old their prospective home’s water heater is. Replacing a water heater can cost well over $1,000, so it certainly pays to ask for a report on the health and age of this integral unit.

On average, water heaters have a lifespan of between 8 – 10 years. However, there might be warning signs of damage well before your water heater hits the eight-year mark. A few typical warning signs include rusting, leaks, and abnormally high water pressure. 

In addition to asking the age of a home’s water heater, you should also figure out how often these units have been drained. According to most plumbers, homeowners should drain their water heater at least once per year to eliminate sediment deposits. 

Work with a Buyer’s Inspector

While your real estate agent might have an inspector that they recommend, it is in your best interest to work with someone else. While your realtor should have your best interest at heart, they only get paid once you buy a house. 

In some nightmarish situations, inspectors will forego reporting serious issues for the sake of their relationship with the real estate agent. While these incidents are the exception, it is the safest bet to hire your own inspector who doesn’t stand to benefit from the sale of the home that they are inspecting.