Common Items First-time Home Buyers Waste Money On
Being a homeowner is often more expensive than most first-time home buyers expect. There are countless things to spend money on that they simply overlooked. This includes things like the expense of lawn care and larger utility bills. Some of these expenses are necessary while others are expenses that can wait.
Don’t make the same mistakes as many first-time home buyers and waste money on the following things:
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Buying a house that is too big
When you overbuy, you hurt yourself in more ways than one. For starters, your mortgage is going to cost more, as well as your property taxes. You will also end up spending more on your heating and cooling because you have additional space that you need to keep comfortable.
Think about the areas where you can afford to sacrifice space.
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Over the top landscaping
When you first move in you might have dreams about what you want your yard to look like. However, it’s best to wait before making a lot of changes.
Get familiar with the yard and how you will really use it before spending a lot of money on it. You might end up spending a lot of money on plants only to find that you can’t keep the wildlife from coming in and chewing them up.
You also want to make sure you can comfortably afford the house and the bills that come along with it prior to spending extra money on something like additional lawn care.
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Homeowners’ insurance
It’s easy to get homeowners insurance from the same company that you used for renter’s insurance, but you could be paying more than you need to if you didn’t shop the prices. Compare the prices from several different companies to see where you get the best deal with the best coverage.
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Extra “stuff”
Once you have more space in your house, you are going to feel a natural pressure to fill the rooms up. If you went from a one bedroom apartment to a three bedroom house, you have two extra rooms that you don’t have furniture for. Remember that you don’t need to fill all the spaces right away. Wait to see how you are going to use the space and buy pieces one at a time.
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Extended Warranties
If you have to purchase appliances for your house, the salespeople will try to sell you on buying extended warranties. Don’t waste your money. The chance that your new appliance is going to quit working right after the regular warranty is unlikely.
And even if you need to have it repaired, the cost is usually not more than what you will pay for the extended warranty. You’re better off saving your money and taking your chance.
When you buy a house you are making a major financial decision. It is smart to wait several months before making a big purchases to see which ones you really need and which ones you just thought you needed. Chances are you will be much happier with your purchases if you don’t rush into making them.