Mistakes to Avoid When Buying A New Property
Updated: Sep 5, 2019
Buying a new property can be the perfect asset for you and your family if you have made the right choice and decision. While buying a newly constructed house is a bit challenging than buying a previously owned house as you can get enough information and data for a previously owned house but for a newly constructed property you will have to work along with the builder.
Builder or Agent whoever you decide to go along with to buy your new-house, make sure to get complete details and do background checks. It’s always good to avoid mistakes and risks in the initial phase of your search. To make your home buying experience hassle-free, listed are 6 major mistakes made by people while buying a newly constructed house so that you avoid making them.
Lack of Research
Research is the most essential step in buying a new property. People tend to listen to other’s opinions and forget to do this critical step.
Select a city based on your preference and make a list of your preferred localities. Gather data and information by reading reports from the real estate developing authorities and consultants about the areas so that you are well aware of the locality. If possible, go and visit the localities you have chosen to live in your future. Shortlist localities from your visiting experience and the information you have gathered previously.
Select the kind of houses you are looking for your family by thinking long term (hope you have a list ready). Ask basic questions about the neighbourhood, development of the areas in near future, infrastructure, safety and so on. Keep options in hand to avoid any unimaginable circumstances like – legal issues, mosquito problems, sewage problems, water issues, etc.
Weigh Pros and Cons
Comparing the shortlisted houses will help in weighing all pros and cons according to your preferences. Visit all the houses personally and talk to the neighbours who are living there for quite some time. Talking to the residents will give you internal information about the locality and area which is not available anywhere else. Getting firsthand information is always better than relying on secondary resources.
Look for the lifestyle in the area to suit you and your family by checking vicinity of local markets, malls, schools and hospitals. These are the basic requirements to consider if you are planning to move in with your family.
Don’t overshoot your Budget
Don’t fall in love with a house while sight-seeing. We usually fall in love with the beauty and furnishings of the house that we tend to forget about our own budget and financial status.
Plan your budget and home-loan in advance to avoid any unforeseen financial situation. Financial planning is as crucial during buying a house as planning future of your kids. Don’t forget to take into account additional cost involved in registering a property, living cost and ad-on cost while settling with your family and kids in your newly constructed home.
When I bought my first house, I was not aware about the hidden charges or the cost that will incur when I am going to move in. As I was a newcomer without any experience and no one to guide me through the process, I ended up paying few lakhs extra for all the legal and builder / agent charges. Make sure to discuss each and everything in the beginning if you have finalized on your dream house.
It is always advisable to consult an expert before you make a purchase and involve a lawyer throughout to handle any such unforeseen situations.
You wouldn’t be the first one who forgot to document all the points discussed during your meetings and later on faced too many challenges of not having your dream house built the way it was supposed to be.
Always make sure everything is documented which you and the seller has agreed to. As a newcomer we are not aware about the points to be documented and might miss on something that is crucial and important for our house. To avoid any such situations always include an agent or an experienced lawyer who has dealt with buying properties earlier.
Replacing something might cost you thousands or lakhs if you did not get what you initially agreed on. Small additions or replacements add up to the additional cost later on and you will have a very negative experience on your first purchase. Do not assume anything during your interactions with anyone involved in the process of buying. Be professional in the entire process and insist on documenting all the necessary changes.
Listening to too many people
Everyone is an expert when it comes to buying a property. Family, friends, colleagues all will offer advice and try to influence your decision based on their incomplete information. Avoid making such a mistake by going and visiting the site personally during and after construction.
If you don’t have that flexibility, then hire an expert to do the bidding for you. These are the people with complete knowledge about the real estate, legalities and documentation required to purchase a house.
These days there are many online resources available to check and validate the information. You can also compare different property rates and get review from people. Use these resources to get the required information. Make logical decisions and take steps which are necessary.