Purchasing a new home is exciting, and it’s easy to get caught up in overspending. Keep in mind, there are lots of extra costs when owning a home, such as property taxes, urgent repairs and energy bills. If you’re out of savings due to unnecessary spending, you may put yourself in a sticky situation when unexpected costs pop up. Here are four major cash outlays buyers should try to avoid.
1. Too Much House
This requires some thought, how much house do you really need? Just because you’re pre-approved for a hefty purchase price doesn’t mean you should go as big as you can. Consider eliminating an extra bedroom or the formal dining room.
2. Fixing Up Your Outdoor Space Right Away
Put this one on hold. Updating your outdoor space shouldn’t be your first priority. Make sure you spend money on more essential and functional things such as living room and bedroom furniture.
3. Outdated Insurance
You may really like the insurance company you’ve been using for several years for renters insurance, but it might be time for a change. Take the opportunity to shop around with different carriers, as you may find something that’s a better price for the same coverage. Look for something that works for you financially but will also best protect your home.
4. Space-Filling Stuff
If you’re moving from an apartment, you’ll probably be astonished by how much space you have in your new home. Don’t feel like you have to fill all the space at once. Give your home some time to form a personality. Wait to see what you really need and like. In the meantime, stick the money you save into a renovation fund.