Making mistakes while buying a home, could result in irreparable losses. Home buyers, who are lured by offers, discounts and freebies, tend to forget their actual requirement and hence, make mistakes.
Mistake 1: Paying token money for buying a home, before the loan is approved
Inexperienced buyers sometimes tend to pay the token money, merely to ensure that their dream house isn’t sold to someone else, points out Sushil Raheja, CEO of Raheja Homes Builders and Developers. “However, it is advisable to take the plunge, only after ascertaining the time that it will take, to get the home loan approved and the possible options, if it doesn’t get approved on time. Otherwise, you may get caught up in legal cases, or will have to forego the said house,” Raheja cautions.
Mistake 2: Not reading the purchase agreement before buying a home
When a buyer does this, he makes himself vulnerable to fraud or forgery. This also means that the buyer has not verified the document and hence, is not aware if the house has all the requisite clearances. This is where you need a lawyer, to read through the document thoroughly and watch out for any loopholes.
See also: Here’s why you should thoroughly read your builder-buyer agreement
Mistake 3: Opting for a home in a locality that faces problems, such as electricity shortage, water crisis or lack of infrastructure
This can end up being a long-term problem for the buyer. Such issues may also crop up in urban areas and buyers should, therefore, evaluate the location properly, before buying a project in the area.
Mistake 4: Not discussing the fixed and variable costs, with the builder
Home buyers who are not aware of all the expenses that they have to incur, may be in for a rude shock. Nowadays, several builders are slashing property prices but simultaneously increasing the maintenance and other charges quietly. Therefore, it is very important to know all the expenses in advance.
Mistake 5: Ignorance of super built-up versus carpet area
Properties, whose prices are based on the super built-up area, always cost more than those based on the carpet area. It is better to insist that the builder quote a rate on the basis of carpet area.
Things to keep in mind
- Home buyers should enlist the help of professionals, who can guide in the buying process.
- While buying a new property, preferably, choose a reputed developer.
- “One of the worst mistakes that a buyer can make, is extending on their budget. You must calculate the monthly costs before you buy a house and also evaluate your loan eligibility. Any kind of negligence, can lead to problems in ownership of the property,” suggests Hariprakash Pandey, senior vice-president – finance, HDIL.
- “Buy a house in a location that is not only convenient, but provides better value in the future. It should also have good connectivity to other places and adequate social infrastructure,” Pandey adds.
- The buyer should also check the title and the legal aspects of the property, maintain experts.
Amit Sethi is an accomplished professional with a distinguished background, holding an MBA in Finance. As an Independent Journalist and Data Provider with 20 years of invaluable experience, his expertise lies in meticulously covering stories on Real Estate, Personal Finance, Business and Banking. He writes journalistic content for leading media publications in India and also provides analytical data to real estate and fintech companies. Amit is driven by a purpose to disseminate insightful narratives, using verified information to empower individuals with financial literacy. Through his work, he aims to assist people in staying aware and making informed decisions that positively impact their financial well-being. Amit is a fitness freak, a marathoner and likes trekking.
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