Making mistakes while buying a home could result in irreparable losses.
There are several things that can wreck your home buying dream and make your home ownership experience a nightmare.
If buying house for the first time, it’s always good to seek the help of agents, who can guide in the buying process. And if buying a property on mortgage, please explore and understand the terminology used in mortgage world. Above all, it’s always better to choose a reputed developer.
Below are common mistakes that you must avoid while buying a home:
Mistake 1: Paying initial money for buying a home before the loan is approved
Inexperienced buyers sometimes tend to pay deposit money merely to ensure that their dream house isn’t sold to someone else. However, it is advisable to take the rush, only after ascertaining the time that it will take, to get the home loan approved and the possible options, if it doesn’t get approved on time. Otherwise, you may get caught up in various legal issues or you loose the house
Mistake 2: Not reading the purchase agreement before buying a home
Many times buyers do not verify property documents and hence are not aware if the house has all the requisite clearances. This is where you need a lawyer, to read through the document thoroughly and watch out for any loopholes.
Mistake 3: Opting for a home in a location that faces problems, such as electricity shortage, water crisis or lack of infrastructure
This can end up being a long-term problem for the buyer. Such issues may also crop up in urban areas and buyers need to evaluate the location of a properly, before buying a project in the area.
Mistake 4: Not discussing the fixed and variable costs, with the builder
Most buyers are not aware of all the expenses that they have to incur. Several builders in Kampala are right now slashing property prices and concurrently increasing the maintenance fees and other charges quietly. It is therefore very important that you know all the expenses in advance.
Mistake 5: Ignorance of forced sale and market value of the property
There are occasions where by property owners wish to sell quickly for reasons of financial distress, to satisfy a legal claim, or simply to liquidate in order to move can result in a request to provide a forced sale valuation
Liquidation value and ‘distress sale’ are generally synonymous with the concept of forced sale, whereby all imply a reduced sale period and a compulsion to sell.
Mistake 6: Being overly too emotional
Experts say this can be quite common with first-time buyers. Check the emotions at the door and think with your head.
When you fall in love with a property, it can be hard to walk away. Stick to your budget and be aware of the risks of forgoing a home inspection for a chance to win a bidding war. Making your offer conditional on a home inspection is a smart decision because a qualified home inspector, engineer or contractor can identify underlying problems with a home’s major systems, like heating and electrical. Skipping an inspection is a gamble because you’ll leave yourself vulnerable to a much more costly problem later on.
Always keep in mind the re-sale value of the home you want to purchase, and remember that in real estate it’s all about location, location, location.
And “If you’re just going to buy something as a stopgap, then why are you buying it at all? You need to buy something that you can see yourself in it for 5 years”. Richard Malinga- Property Consultant.