If you are on the market, or have been in the past, you know how hard the home buying process is. Searching for the right home, budgeting prices, and planning school district issues – these are just a few of the problems. Sometimes people can forget the simple things and mistakes happen. Below, we will discuss some of the simple mistakes buyers will commonly make when searching for a home.
Allowing for Purchasing Costs
Sometimes when planning a budget, customers forget that you have to pay about 10% above the actual price. This is paid at closing and is for services rendered, mainly to realtors, lawyers, notaries, as well as the taxes on the transfer of ownership. When purchasing primary real estate, there may also be other costs involved, so it is best to see what these are before signing the contract. If you are unsure, speak to your local letting agents in Petts Wood. They will be able to help you through the process.
Many people will compare the costs of rent and mortgages, and tend to favor the latter, but they are often wrong. This is because they forget to take into account maintenance costs. Utilities and maintenance normally cost 1-3% of a home’s total value. If the property is worth $500,000, you’ll have to pay $2,000 per year in maintenance. Even in today’s housing market, land and homes are not cheap. If you have a large plot of land, the cost of watering and upkeep will be great. Many people prefer to build houses on plots of 5-10 acres, up to a maximum of 12 acres. Just remember that no matter what you buy, you are responsible for the upkeep.
Learn the Currency Market
The transaction date is often a few months away from the moment you decide to buy a house. If you are moving abroad, the foreign exchange rate may really hurt you if you aren’t familiar with it. Even a slight exchange fluctuation when transferring money abroad can significantly affect the cost of purchasing of real estate. Try to agree in advance on a fixed rate of exchange rates and currency by hiring a broker or letting agent. In some cases, you can save thousands of euros or dollars, etc.