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Common mistakes first-time buyers must avoid

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Common mistakes first-time buyers must avoid

/ 05:34 AM July 15, 2017

If you’re a first-time home buyer, chances are, you are having mixed emotions on how to go about in purchasing a home or a condominium unit. The thought can bring a lot of excitement but can, at the same time, also cause jitters because you are standing on unfamiliar ground.

Here are some common mistakes you should avoid.

Don’t buy without knowing what you really need.

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Some first-time buyers are easily persuaded by advertisements. While these come-ons may seem enticing, buyers must first know what they need to buy: a lot, a house and lot, a condo, or a townhouse? The right choice depends on the purpose and the concerns that buyers need to address.

Don’t allow yourself to be pressured into buying.

With so many sales agents and companies offering a wide array of choices, it is clearly a buyer’s market that is prevailing in the property industry.

This means first-time home buyers can take their time in choosing which one would serve their best interests. Buyers therefore, should take their time to compare and study the options in the market.

Given the stiff competition among real estate companies, it is also understandable that some agents tend to be too aggressive and persistent in closing a prospective deal. Don’t allow the undue pressure to influence your decision.

Don’t just look at the brochures and flyers. Also check the property.

While brochures and other sales materials are attractive, nothing beats checking the actual site of the property. While doing so, home buyers should observe and ask their agents for facts that may help them in making a good decision.

Some questions worth asking include the traffic condition in the area; proximity to schools, markets, hospitals, malls, and banks; development timeframe (if the project is not yet completed); and availability of water, electrical, cable, and wi-fi facilities, to name a few.

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If there are already existing homeowners in the subdivision or condo, it pays to interview one or two of them to ask of their experience. This would give buyers a first-hand feedback about the place they would be buying in.

Don’t buy without knowing the real cost of the property.

Most of the amounts reflected in flyers give low and affordable installments to catch the attention of buyers.

First-time home buyers must be aware that while these amounts may be true, they do not give you the whole picture.

Ask for comparative computations using different percentages of downpayment. A low downpayment may look good, but a buyer can save more if he pays a higher downpayment (at zero interest) because he lowers the balance which is normally interest-bearing. It also pays to ask the other hidden charges if any such as association dues, turn-over fees, transfer fees, etc.

James Aguila is the EVP of SLLI Global Marketing Inc., a marketing group of Sta. Lucia Land Inc. and Sta. Lucia Realty Development Inc.

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TAGS: Business, first-time home buyer, property
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