There is a lot of advice out there for people looking to buy a home. It can be hard to sort through fact from fiction, and the advice before the purchase can be just the beginning. There is a lot of advice for new homeowners, too, and it is critical to separate myth from reality. Recognizing what advice to pay attention to can potentially save you time, money, and headaches. So what are some top new homeowner myths?
New Homeowners Can Worry About Home Maintenance Costs Later: Regardless of if you purchased a new construction home or a resale home, home maintenance costs are something you should absolutely budget for. Often times, older homes will come with higher maintenance costs, and though that is not always the case, most homeowners can expect to pay 1-4% of the home's value each year on maintenance costs. Keeping up with maintenance and staying on top of small issues can end up saving you big time down the line by potentially avoiding big repairs.
Buying Everything and Decorating Before Move-in is Best: It may be tempting to think you need to decorate the entire space or purchase all new furniture immediately after purchasing a home. However, you may already have furniture or decorating pieces that go with your new space and not even realize it. Consider living in the space for a while before making a big investment in new furniture.
Skipping the Inspection is No Big Deal: You might be tempted to waive an inspection in order to save money or be more competitive in your offer. This can be a huge mistake! It is important to get a home inspection in order to uncover any potential issues with the home. Uncovering issues with the home can allow you to negotiate fixes with the seller as part of the purchase, or at least know what kind of money may be required to make certain repairs when buying a particular property. It can also ultimately help you make the decision to move forward on a purchase or not.
Home Warranties and Home Insurance Are the Same Thing: Almost every homeowner will have homeowners insurance given that most mortgage lenders require it. Homeowners insurance covers repairs and or replacement costs if your property is damaged or destroyed due to a fire, natural disaster, or theft. In addition, it can also cover personal liability if someone is injured on your property. There are also additional coverages available on many policies as well. Home warranties, on the other hand, are service contracts designed to cover the repair or replacement cost of items in your home such as appliances, HVAC systems, electrical, plumbing, water heaters, and more. Additional coverage for things such as pools may also be available. As with homeowners insurance, home warranty coverage can vary depending on the policy or company, so it is important to do your research.
Home Improvement Projects Always Add Value: Homeowners often think that doing home improvement projects will always add resale value to a home. However, the reality is, sometimes home improvement projects will add resale value, while others can actually decrease resale value. Improvements should always be made while keeping in mind the market value and location of the home. For example, you wouldn't want to make luxury upgrades to a home if the home is in a less affluent area with mid-range home values.