5 Critical Things Most First-Time Buyers Overlook
Category Advice
Buying your first property is an exciting venture. You finally get to start your first property hunt and hopefully find your dream home by the end of it. Venturing out into the property landscape armed with the right advice will set you up for a successful experience.
Finding the right property for the right price may take some time depending on the status of the property market, but patience is always rewarded in the property game.
Whether you are looking to buy a rental property, development property, or a family home, there are some critical factors to take into account before you sign the deed.
Here are 5 key factors that most first-time buyers tend to overlook
1. Common hidden and added costs
First-time buyers often aren't fully aware of the additional costs that come with the purchase of their first property. The cost listed on the For Sale sign is unfortunately not the same as what you will end up paying in the end. Being prepared for these costs and creating financial margin for them will go a long way to minimizing those costly surprises.
Here are some of the most common hidden or added costs to be aware of:
- Legal fees
- Cond registration and transfer costs
- Registration of utilities like water, electricity or a landline (if necessary)
- Repairs, maintenance, and renovations
- Homeowner's insurance
- Property taxes
- Rates and levies
- Storage and transport costs
- Security costs (alarms, surveillance, etc.)
- Homeowner association fees
2. Surrounding areas
You don't just buy a property - you also buy into a neighbourhood. So take a good look at the property's surrounding area to make sure you could see yourself living there. Better yet, see if you can speak to some of the neighbours who might be willing to share their experiences living there.
Here are a few questions to keep in mind when you consider whether a neighbourhood is right for you:
- Is it near any important amenities, like malls, schools, parks, medical care, etc?
- What is traffic like in and out of the area?
- How are the noise levels?
- Is there sufficient parking available?
- How safe is the area? Is there a strong security presence?
3. Professional home inspections
As much as we all would like to have dealings with people in good faith, we can't always bank on them. Doing so could cost you if the seller doesn't follow through on their promises. This is often the case when it comes to compliance and property inspections.
Avoid the temptation to waive property inspections in order to win a bidding war. The integrity and safety of the property should never be compromised, no matter how much you want to buy it. Rather have peace of mind by reviewing the initial inspection reports for problem areas, and using them to negotiate further with the seller.
4. The future
As much as you might be able to see yourself living in your new home forever, it's never a bad idea to consider what the future might bring. Consider the resale value of your property, and how likely you are to sell in five, ten or even fifty years' time. Selling is not a done deal, but keeping your options open can be helpful further down the road.
Consider some of the following scenarios before buying your property:
- Will the property accommodate a growing family?
- What are the chances that you might immigrate?
- Would you like to eventually renovate or expand your property?
- Would you ever consider renting your property out?
5. The value of working with a professional
Doing it all yourself might seem like a better (and cheaper) option, but as a first-time buyer, you really want the A-Team on your side. It could make all the difference and help you avoid some big property pitfalls. When you consider how much you stand to lose if you make a poor choice in property, hiring the expertise of a professional agent is a wise choice.
Need help navigating your first property purchase? Give us a call!
Our team of seasoned agents have helped countless clients through all sorts of property purchases, and guided them right through to the key handover. We would love to meet with you to discuss your needs and set up some initial viewings. Contact an SAproperty.com agent near you today!
Author: SAProperty.com
