What to Expect When You are…Buying a New Home

© Image Source/Rex Features
© Image Source/Rex Features

Buying a house with that front porch and white picket fence is every American’s dream. However, buying your first home is not all what you would expect. Yes, you sign a contract and pay for your deposit. But there is so much more time and effort to the entire home buying process than most would believe!

If you spot any damage to the house that you are about to purchase, be aware that the seller is not at all obligated to fix these issues before you buy the house! It makes sense that the seller should fix their home just so they could sell it at a higher value, but it is not a requirement for them to do so. However, as the buyer, you can rescind your offer if these required repairs are too costly for you. So if you hire a home inspector and are presented with a long list of issues with the house, you may need to reevaluate the worth of your purchase. Since the seller isn’t forced to fix these problems, the money that is needed for these repairs will just be an added cost to your purchase! Therefore, if you are setting a budget for the maximum amount you are willing to pay for a house, you need to factor in the costs for repairs to that total as well!

In addition to that, if you do not fix the crucial parts of the house that is in need of repair, you may even be dropped from your homeowners insurance! This is serious because sometimes they give you a limited timeframe where you need to finish your repairs, and you might not be able to afford the costs of these repairs just yet. So be sure that you read the fine print when you are applying for a homeowner’s insurance and are aware of all of the policy measures. But first, before you even settle on a specific homeowners insurance provider, make sure that they will cover the basic but important things that you will need. These may include, floods, break-ins, earthquakes, etc.

Another thing you might not be expecting is that even if you get an inspector to check for needed repairs in your potential home, which is pretty costly, it won’t even be as thorough as you would prefer. Home inspections are pretty expensive. Usually, most buyers are so eager to speed up their timeline that they fail to do their research and compare the fees between inspectors. So the opt for the first one that they find, which may not be the cheapest. And even if a regular home inspector completes a sweep-through of the house, you might need specialized inspectors to check the more detailed parts of the house. However, just because a home inspector said your house doesn’t have any significant issues, doesn’t mean that you are free from any worries, especially if the house is an older one. These inspectors have a limited scope as to what they can see since they are not allowed to break through the walls to check the internal structure. Therefore, you need to consider the fact that the projected worth and safety of the house is not a guarantee.

When buying a house, there will be many aspects in this process that you will not be expecting. Overall, it will be very time consuming and you will face many obstacles if you are not prepared. So before you decide to accomplish every American’s dream of buying your own house, make sure you do your research and have the proper amount of money that it realistically entails!

(Source: HSH, Select Underwriters)

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