Over the years, I have learned a lot about first-time homebuyers and the mistakes that they sometimes make. So today, I am going to tell you about seven costly missteps new homeowners make in their first year so you can avoid them:
1. Remodeling with the lowest bidder. While the lowest bid may save you some dollars upfront, it will typically cost you more in the end. Too often, I hear about someone choosing the least expensive contractor and ending up losing money because of correcting mistakes. Make sure you do your due diligence, your research, and find the contractor right for you.
2. Submitting small insurance claims. Small things happen. They may not seem small to us, but they are relative to our deductible. Submitting these claims to your insurance agency, in the grand scheme of things, ends up costing more in terms of increased premiums down the road.
3. Making improvements without evaluating your ROI. Certain things that you do to a home will generate a positive return on investment, such as upgrades in kitchens and bathrooms. Other areas of your home will not. So be aware that not all improvements will generate a positive outcome in terms of return on investment.
4. Going on a furnishing spree. This is not always the most practical spend, as you may buy something, have it in the home for a few months, and then decide that you don’t really like the piece. What I would encourage you to do is buy the necessities but wait on other things until you become familiar with your home.
5. Throwing away receipts and paperwork. Save the receipts and paperwork because warranties and returns happen. Organizing the paperwork might save you some dollars down the road.
6. Ignoring small items on your inspection report. Once you move into your home, take care of the little things that showed up on your inspection report right away. A couple small fixes are no big deal and taking care of them is a good idea.
7. Remodeling without doing the research. This is not the same as the ROI I was discussing earlier. This topic I will discuss in future videos, but for now, do your research on the cool, edgy things that are showcased on HGTV right now. Will the new features you add increase the appeal of your home to not only yourself, but to future buyers when you sell the home?
These are the seven things that you should consider as a first-time homebuyer in your first year of homeownership. If there is anything else I can do for you, please reach out to me. I would love to help in any way that I can.