5 Scary Things New Homeowners Forget About When Buying A Home
5 Scary things new homeowners forget about when buying a home
In recent months, mortgage rates have been going down so for many people, this may be a good time to buy a home. If you have never purchased a new home, there are a number of problematic issues to look for when searching for the perfect home for you. To help you have a successful home buying experience, below you will find a list of 5 Scary things new homeowners forget about when buying a home.
1. Abundance of trees and stumps
When house hunting, it is important to examine the entire property. Trees and stumps too close to the home, garage, and septic system can cause future problems and expensive repairs. Tree roots can grow into the septic system causing damage, a tree too close to the house can fall down on the home during a windstorm, and a tree can fall onto a garage causing costly repairs. As well, tree stump roots close to the home can cause cracks in concrete garage floors.
2. The Scary “As Is” home
If you buy a home that is advertised ‘as is’, be wary of potential problems. There could be issues with appliances, electrical systems, mold, fire hazards, leaky roof, cracked foundation, basement flooding, and other home system issues. Also, don’t forget about pesky termites and cockroaches. It is best to invest in a trusted home inspector to look for problems. You may also want to get professionals to look at the plumbing and electrical system. Along with home insurance, it is very beneficial to have a home warranty plan in the event of unexpected breakdowns due to normal wear and tear.
3. Get All of The Permits
Unfortunately, not everyone gets the appropriate permits when renovating or adding a new room or even pool. If there is damage such as a bathtub flooding and falling through to the kitchen, without proper permits, it will likely not be covered under your home insurance. You will then have to get the permit and possibly pay hundreds or thousands in repairs. You may also have to sue the previous owner for failure to produce all pertinent documents. This can be very stressful and time consuming.
4. Disappearing Home Items
Unfortunately, there are some really awful home sellers out there who will clear just about everything out of the house. Once all agreements have been signed, before the new homeowners arrive, some sellers take just about everything, including: light bulbs, fuses, batteries, scissors, tape, blinds, closet organizers, shoe rack, toilets, etc. Some may even pull the flowers and take the garden shed. The thing to do is have a signed notarized list of what will be taken and what will remain. Oh yes, get new door locks right away.
5, An Investment that is too Costly
Sure, you may be looking at the home you dreamed of since you were a child, however, can you afford it for the life of the mortgage? Just because a loan rep or online calculator says you can afford it, this does not mean you should go all in and max out everything. You need to sit down and figure out such expenses as: utilities. Hydro, mortgage payments, groceries, gas, incidentals, and taxes. Speaking of taxes, they can increase each year. You may start out with $1800 one year and then have it jump to $2500 the next year.
Using a planner, create a household budget. Make a few budgets for different scenarios. For instance, do you have money if something breaks down that is not covered by your home insurance. A good remedy for this scenario is a home warranty plan. To protect appliances and home systems from breakdowns due to normal wear and tear, a home warranty plan is an excellent investment. In addition, consider how much you want to contribute to retirement or how much you wish to set aside for vacations? Asking these types of questions will help you make the right decision.
Another important point: you should not only be aware of future rising rates such as taxes, living expenses, gas, recreation, etc, but ensure you have plans in place in case of an emergency such as one partner or both losing a job, an illness in the family, addition of children, car break down, college fund, new renovations, new roof, etc. It pays to plan for new and future costly events in life.
Do Your Home Shopping Research
Buying a house can be easy when you know what to ask and what to look for. Do your research and ask for advice from professionals. Hire a trusted home inspector. Home Insurance and a Home Warranty plan are excellent protection. At ARWHome, we are a one-stop shop providing coverage not only for major home appliances and systems, but also for new and existing home and computing entertainment products. Homeowners can pick and choose which home appliances and systems they want covered in their plan. There are no long-term contracts so you may hold a policy for as little or for as long as you would like.
Benefit from Customizable Plans
Look for plans that are customizable and cover a wide range of appliances and systems, such as: central heating & cooling units, ductwork, plumbing & electrical systems, water & sewer lines, kitchen appliances, ceiling fans, garage door openers, water heaters, and new & used electronic devices. You can save even more with bundle plans.
If you have home insurance, buying a home warranty plan is that extra layer of home asset protection. This may be the perfect time to purchase a home warranty for your home.