As a new homeowner, it’s natural to experience some growing pains as you adjust to your new life, and you’ll probably make a handful of mistakes during the first few years of owning your own home as you get used to your new responsibilities. Some mistakes, however, can have a huge long-term impact on your life as a homeowner. Fortunately, they are also easy to avoid. By familiarizing yourself with some of the most common mistakes new homeowners make, you can take the necessary steps to ensure you don’t make them yourself.
Paying a deposit in advance – When hiring a moving company to transport your belongings to your new house, avoid any company that asks for a deposit upfront before the move is complete. A reputable company will ask that you simply pay the bill in-full upon delivery, so you have the chance to make sure that everything arrived and got to your home in one piece.
Filing their own tax returns – Filing taxes as a homeowner is vastly different from filing as a renter. Now that you own your own home, you qualify for a number of deductions and credits that were never previously available to you. New homeowners are often confused the first time they file taxes after purchasing a home, and are prone to overseeing big write-offs that could have raised their return amount – or awarding themselves deductions they don’t really qualify for and getting audited. For at least the first year of owning your own home, hire a professional to file your taxes and explain the process to you.
Failing to get proper insurance coverage – Not every homeowners insurance policy offers the same amount of coverage, and new homeowners often fail to take out enough insurance to fully cover their homes. This becomes a problem when an accident or disaster occurs and homeowners don’t have enough money to repair the damage – and their policy doesn’t award enough to pay for it either. From your liability provision to your additional living expense coverage, make sure that every part of your homeowners insurance policy provides adequate coverage.
Failing to keep up with routine maintenance – When you’re used to renting, you’re used to having a maintenance man to keep up your property and make any necessary repairs at no cost to you. When you own your own home, you become your own repairman, and it’s your job to keep every element of your house in top shape. New homeowners often neglect to perform seasonal checks and maintenance on their home systems, appliances and landscaping, which can lead to the need for big repairs down the road.
Selecting repairmen based on cost rather than reputation – In the event something in your home breaks down and you’re no longer protected by LGI Homes warranty plan, you’ll need to hire a repairman to fix it. New homeowners often try to save money and hire the cheapest repairman they can find, but oftentimes, you get what you pay for when it comes to home repairs. While quality, low-cost repair companies may very well exist, it’s essential that you thoroughly research a company before hiring to ensure that they have a positive reputation. Otherwise, the repairs could be done incorrectly – and cost you even more to have the repair done the right way by someone else.
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