Basics of Property Management: Screening Potential Tenants

Buying Your First Home? Don't Make These 3 Mistakes That Can Cost You Money

26 January 2017

Jesse Obrien

Buying a home will certainly be the biggest purchase you'll ever make in your life, and that first home will introduce a variety of things you'll be thinking about for the very first time. It can cause a first time homebuyer to make mistakes along the way, and end up regretting them after they move into the home and realize what they did. Don't make any of these mistakes the first time you make that big purchase and can end up costing you money.

Not Considering The Re-Sale Value of the Home

The first home that someone buys is typically not their forever home. There is usually a smaller budget in mind, a smaller family to consider, or even just the desire to get out of apartment living. These desires can cause someone to overlook the re-sale value of the home for when they go to sell in the next 5 or 10 years.

If there happen to be extensive repairs that must be done, realize that house expenses might not yield a higher selling price when you sell the home. For instance, if you know you need to replace the HVAC system soon after moving in, you might not be able to get the money back on that big purchase. Future buyers will look to see if you have an HVAC system that is working, not that it is new or energy efficient.

Not Being Aware of Emergency Assessments

When buying a unit in a shared space, such as a condo building, you must consider when you are going to eventually sell the unit and what costs could come up in that time. If the condo association plans on doing major renovations while you're living in the condo that require an emergency assessment, you may be stuck with a bill and major improvement that you never get to enjoy.

Always look at the condo association's board notes before moving in, and see how much money they have in reserve funding for big purchases. If they have no cash on hand and plan on doing a renovation, you end up paying for it no matter how long you live in the unit. Tenants that have not been hit with an emergency assessment in years pay the same amount as those that are planning on buying and selling within a year.

For more tips on things to avoid, work with a real estate agent in your area. Click here for more information.

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