What NOT to Do if You Just Bought a Home

What NOT to Do if You Just Bought a Home

There are certain traps you can fall into as a new homeowner, that can put your financial well-being at risk. Avoid doing the following too soon:

Don’t Forget About Your Home Inspection. New home buyers tend to think the home inspection is only about negotiating the sales contract when in fact, it is your most useful too when getting settled into homeownership. Scrutinize every detail of your home inspection and make a list of maintenance issues. Keeping up with regular maintenance is the best thing you can do to preserve your home’s value.
Don’t forget to change the locks. I probably should have put this first on the list. It’s something you’ll want to do maybe even before you set foot in the door of your new home. Perhaps the previous owners and the realtor gave you their keys, but you never know who else might have had a key to your new home.
Major Remodeling: Unless there’s something in need of immediate repair, put the brakes on any major remodeling project. You’ll need time to assess the cost vs. return, meaning that you’ve considered whether or not it will increase the value of your home. A short delay will also give you time to research and secure the best professionals if you need help. Always consider energy efficient projects first as these will save you money on utilities over time.
Furnishings: Your new house may not immediately feel like home. Take a moment or two to let your home reveal its own personality. This will also allow you to budget over time as opposed to taking one big financial hit.
Taking out an equity loan. Good real estate investment strategy dictates that your equity should serve as a cushion for the future. As time progresses, there may be issues that aris that will require financial outlay. If you’ve already exhausted your equity, you won’t have that emergency buffer available for… well, emergencies.
Moving up. You may consider this new property, a first step to get you to your dream home, but wait it out a bit. Make sure you have available finances to do so comfortably. Staiying in your current home for a few years will help you decide what your ultimate goal should be and give you a reasonable amount of time to figure out exactly how to get there.
Bold asthetics. Don’t go over the top with paint colors or wallpapers, construction, or any other risky design statements. I can tell you from experience that bright colors and glaring design choices do not ‘sell’ well. If you are at all considering moving on to your next phase of homeownership, make sure your choices are eye pleasing, not eye popping.