Buying a house is a big part of the American dream. Young adults are frequently in a hurry to buy a house before they have other parts of their financial houses in order. A home can be a great asset, but it can also be a major liability. Here are some regrets that are common among first-time home buyers.
Buying Too Much House
The top regret first-time home buyers have is buying too much house. Buying more home than is needed is a good way to become house poor. A big mortgage payment means that there will be less money around to pay for other needs or wants. Having a mortgage that takes up a huge percentage of a family’s monthly cash flow can lead to less flexibility in other areas of life.
Offering Too Much
Closely tied to buying too much house is the regret that can come from offering the full asking price. It’s a good idea to be ready to walk away from a home if the price is too high. Most people who are selling a home will set the selling price of their home at the highest possible level. They want to get the list price, but most are willing to negotiate if the house stays on the market for a while. Searching the listings for a home that’s been on the market for a few months might mean a discount. Regardless, it’s good to start with an offer below the list price and start negotiating from there.
Shopping At The Wrong Time
It might seem like a bad idea, but starting a home search during the winter can be a great way to save some money. The yearly peak for home sales comes in the spring and summer. By waiting until winter to begin a search, it might be possible to benefit from homeowners who are more willing to give a discount on the list price just to get their home sold. Because of the robust level of sales during warmer weather, paying the higher prices that come with the higher demand can be a major regret for first-time home buyers.
Buying a home is an important step most people will take in life. A home can be a source for increased net worth and financial stability. However, it’s important to avoid jumping into owning a home too quickly. Some major regrets can be avoided by taking the time to make a smart purchase.