Home Buying Mistakes to Avoid
Too often I see people getting overwhelmed from the process of building a new home and giving up before they even get started. Here are some of the most common mistakes I see people making when it comes to building:
Don’t Begin Looking For Your Home Until You Know This!
It sometimes amazes me how many people are ready to build a new, custom home but have no idea what they want or how much they can spend. Stop right here! It’s crucial, before beginning the design/build process, to determine what you can afford. If you plan to finance, talk to an experienced professional mortgage lender who can help determine what you can comfortably afford.
Sadly, people who begin the design process without first counting the cost often design to their dreams, only to find out later they have far exceeded what they can afford. They end up mad, sad, or extremely frustrated. This situation is almost entirely avoidable when we realistically determine what you can afford. After that we go to work to design a quality, custom home, that’s 5 to 10 percent below the target number. We begin below the budget because we know from experience that changes may occur during the building process. For instance, a homeowner may upgrade the finishes as the construction process unfolds, or other variables may arise that would add to the cost of their home. If we start with a number that is below your budget, we leave you some cushion common changes.
Now that you understand what to do first, let’s look at some of the other mistakes that people often make when looking for a new home:
Focusing on a floor plan.
When you work with a builder it’s important to understand the personalize/build process. You’re not buying a floor plan, you’re partnering with a firm to personalize and build a home to your specifications within your established budget.
Getting 3 bids.
Now I know what you’re thinking- here’s a builder I might choose to build my home and he’s telling me not to check my price! Let me explain. There is a specific process of obtaining competitive bids which I will explain in detail in the Pricing section. What I’m referring to is using a low bid to choose a builder. This normally ends in disaster for you as the consumer. I will help you find potential builders to work with in my Choosing a Builder section- including giving you detailed questions to ask any potential candidates.
Not allowing enough time.
We’re all busy juggling work, family and everything else in our lives. It’s important for you to realize building a new home is an investment of both money and time. And think about this. How many years do you want to live in your new home? Isn’t it worth taking the time to make sure your new home is designed and built just the way you want it?
Settling on a used house.
There’s a good chance you may be looking at used houses right now or have done so in the past. Maybe you’re using a Realtor® too. That’s okay. Just keep a couple of things in mind. Used houses are attractive for a couple of reasons. They’re already built and you can move right in plus used houses are priced lower than a brand new home. In my Price section I’m going to share with you the difference between low price and low cost. A lot of people buy a used house based on a low price only to realize the house needs remodeling for antiquated design and deferred maintenance. When you add all the extra costs of ownership up you could have built a brand new home for less than the cost of the used house.
Building a new home is too expensive.
Probably the biggest mistake I see. The #1 cost of ownership home buyers don’t take into consideration is remodeling. Remodelers get calls all the time from people who own homes that are less than 10 years old. They’re requesting new kitchens, bathrooms, owner’s suites and additions. These projects can run from $20,000 – $200,000+ and when they’re done you still own someone else’s dream home. The #1 reason to build a new home is to avoid having to remodel because the home was design for someone else!
BOTTOM LINE: Know what you can afford before you begin.