Purchasing your first home is an exhilarating experience. The excitement and joy are often overwhelming and may make you forget about the technical side of buying property. But foregoing the essentials leads to disappointment, and even years of financial devastation, if you’re not careful to learn about first home buyer mistakes and how to avoid them before you embark on your own journey.

1. Not Considering Other Expenses

Homeownership and rental tenancy are on opposing scales. As a tenant, your home or apartment is serviced, you’re not responsible for maintenance or maintaining the properties value, and you don’t pay strata fees or council rates. But, as a homeowner, all of this falls squarely on your shoulders. If not planned for, these expenses can quickly add up to be much more than you anticipate.

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How You Can Avoid This

Besides budgeting for a home by determining how much you can afford to pay for a mortgage, do a cost analysis. In your cost analysis determine how much you would spend annually on maintenance and other fees. Since these fees and payments will be in addition to your mortgage, you’ll have a better idea of what you can afford to repay.

2. Becoming Emotionally Attached To A Home

Buyers often fixate on the notion of a dream home with world-class amenities and ultra-convenience the reality is usually a stark contrast. Because of lifelong fantasies surrounding a dream home, it’s easy to get lost in the whimsy and develop an attachment to a home.

Although purchasing a home is an accomplishment, you need to look beyond your emotions to consider and focus on what is practical. Consider whether you can afford a home and determine if you’re looking past obvious flaws that can eat into your budget further down the line.

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How You Can Avoid This

Assemble a team of trusted advisors. Include your parents or friends and relatives who already have experience buying property. They can help you be reasonable when you find yourself fixating on a property.

Also, create a checklist for your ideal home. Include what you want in the property and its surroundings. Once you’ve completed your list, share it with your friends and family, so they’re aware of what it is you want.

Remember, if you want a home with amenities and ultra-convenience to consider purchasing off-plan where you can make adjustments to a home during the building phase.

3. Purchasing A Home With “Good Bones”

If you don’t have experience renovating homes do not purchase a home based on its ‘good bones’ or because it is under market value in an area where home costs are far higher. Why? Unless you have infinite resources and time, such a home can end up costing far more than purchasing a turnkey home, because a home that requires significant repairs to bring it up to code will have hidden expenses. What could appear to be a good deal on the surface can end up breaking the bank instantly when the first nail hits the wall.

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How You Can Avoid This

Purchase a home where the costs of living are apparent upfront. If there are uncertainties about a home and its conditions, it’s not necessarily an opportunity. The learning curve, combined with the cost of the project, will prove to be more than most first time buyers can afford.

4. Making A Hasty Decision

It can take months to find a suitable property, and even then it may not be everything you envisioned. The only thing worse than purchasing a home because of emotions is buying a home in desperation or because you are overwhelmed by choice. When you are desperate, every home looks appealing.

Additionally, once you no longer have the desire to keep searching it’s also possible to buy a home for the sake of buying and not because you are interested in the property. This phenomenon is known as over choice. Overchoice is a cognitive impairment that makes it difficult to make good decisions once you have too many choices.

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How You Can Avoid This

It is common to experience multiple choices when shopping. But, unlike the aftermath of retail therapy splurge, you cannot return a property. Therefore, if you are having a hard time finding a home, take a step back. Reexamine the homes you have toured and are interested in. If a home you were considering was taken off the market while you were examining your next steps, don’t force yourself to act hastily with other properties you like. Finally, if you feel yourself experiencing any cognitive impairment,  don’t make any decisions. Making no decision is better than making a decision you will later regret. And remember, never buy a home because you feel pressured.

But the best decision you can make as a first time home buyer is to find a real estate agent that understands your needs and ambitions and can guide you through the process from beginning to end.