A new home is a huge investment that stands to appreciate significantly if you invest wisely. By avoiding the following five mistakes you can turn your home into a major asset instead of a draining expense.
Don't sell too soon
Usually, it takes about three to five years to gain home equity. It's best to avoid reinvesting the money you've just spent on professional movers for at least this long. Moving is expensive, tiring, and time-consuming. If you tend to move often or crave freedom you should consider moving into an apartment or condo instead of buying a single-family home.
Don't forego the inspection
Having a local inspector take a look at the house is definitely a necessary step in buying a home. Their job is to identify any potential issues with the house - problems, which left undetected, can cost you hundreds of dollars down the line.
Common issues include:
- Leaky pipes
- Eroding foundation
- Improper insulation
- Faulty chimney
- Water damage
- Pest infestations
Don't go too big
Always think in the long term when buying a home. Who's going to live in the home? Are you starting family? Is the house for just you or you and your significant other? If you buy an overly large home you could be stuck with way more maintenance than you signed up for. So make sure you're not pouring thousands of dollars into a home that doesn't suit your needs.
Don't overspend on landscaping
You'll probably want to do a lot of yard work in your new home - having a nice looking yard can improve your curb appeal tenfold. However, unless your home requires some kind of immediate renovation - try to spend the first year making smaller changes an building up your budget. Maybe reseed the grass if its looking shabby but don't add a new deck. It's best to wait at least two years before considering large exterior improvements. That way you're better prepared for any surprise issues that could pop up.
Don't forget the warranty
If your home doesn't come with good appliances, you'll have to buy them. Make sure you add a warranty on anything you buy. Cheap appliances are more likely to break before the warranty is up; high-end appliances are more likely to outlast the warranty.
And don't forget to enjoy your new home!