5 Expensive Things That Can Go Wrong When Buying a House and How To Fix Them

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Buying the right house at the right time and price can be one of the best financial moves you’ll ever make, and it’s something that will keep paying dividends for the rest of your life. But if something goes wrong during the homebuying process, you could end up spending a lot of money and many years digging yourself out of a financial hole.

Here’s a look at five expensive things that can go wrong when buying a house — and how to fix them.

Also see 60 questions to ask when buying a house.

Making the Wrong Down Payment

One of the biggest decisions you’ll make when buying a house is determining how much money to put down. The standard down payment is 20% of the purchase price, but that’s not set in stone. As Rocket Mortgage noted, you can go below the 20% threshold if you are willing to pay for private mortgage insurance.

Not calculating the right down payment can be an expensive mistake. If you put more down than you can comfortably afford, you might face liquidity issues that force you to go deeper into debt just to pay your bills. On the other hand, if you don’t put enough down, you’ll likely face a higher interest rate — and mortgage payment — for years to come.

The best solution is to put down as much as you can without stretching yourself too thin financially.

Property Title Problems

Homebuyers typically hire a title company to make sure the property’s title is legitimate. They do this to make sure they’ll be the rightful owner when they buy the house, according to Northwestern Mutual. But title issues do happen — which could lead to an expensive legal process of sorting through liens, judgments, unpaid taxes, easements, property boundary conflicts and other issues.

Northwestern Mutual suggested finding a reputable title company by asking for recommendations from friends, your real estate agent and your attorney. 

Nearby Development Projects You Don’t Know About

As a homeowner, you don’t want a lot of construction going on around your house or neighborhood. Some projects might last many years, which means you could face construction noise and traffic for a long time. If you buy a home without knowing about upcoming construction or development projects, such as a new office tower, it could be an expensive mistake, as it could lower the resale value of your home.

Before buying a home, be sure to research local government records to learn about pending construction and building projects in the area immediately adjacent to your home and what they involve.

Waived or Inadequate Home Inspections

Home inspections are a standard part of the homebuying process because they make you aware of potential structural and system problems. If you waive a home inspection — or hire an inspector who misses important details — you could end up paying a lot of money down the road for repairs and upkeep.

To fix this problem, Rocket Mortgage recommended making your offer contingent on a home inspection. Also, make sure your real estate agent hires a reputable inspector with a good track record.

Pre-Construction Homes That Go Wrong

Most buyers purchase homes that are already built, but that’s not always the case. You can also buy a home that is still in the pre-construction phase.

If you do opt for a pre-construction home, it’s important to be aware of things that can go wrong. These can range from delays that end up costing you money or poor workmanship that leaves you with a house that needs expensive repairs.

To avoid this problem, research the developer or contractor to ensure they have a good reputation. Realtor.com recommended looking at developers’ online reviews and testimonials, as well as additional information that can help you learn more about them.

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