Purchasing your first home: What to splurge and save on

You decided that homeownership is right for you.

Congratulations! This is a major step in a series of decisions. One of the benefits of owning a home is the ability to customize. Outfitting a home can be costly, and you may want to cut corners. There are times when it makes sense to splurge and times when it makes sense to save.

The first thing to keep in mind is that you cannot and should not do everything yourself. Tasks such as electrical work, plumbing, or any changes to the structure of the home require the professional expertise of a licensed professional. The type of expertise only obtained from extensive schooling and years of experience. Know when to do it yourself and when to hire a professional. It might seem like a simple task but certain jobs are better left to the professionals, which saves you valuable time and helps you avoid complications down the line.

If you decide to work with a professional, ask for recommendations, check online reviews and request several quotes to compare prices. A contractor license does not ensure the quality of the work. It is important to hire a reputable contractor that produces high quality projects.

Consider purchases that will add value to your home. If you plan to resell eventually, investments such as updated flooring, bathroom and appliance upgrades, changing the walls to neutral colors, and enhancing the landscaping will increase your home’s value.

Lastly, reduce the urge to furnish your home all at once. Prioritize the rooms that you would like to furnish, then furnish them as your finances permit. A home is a long-term commitment and you don’t have to rush to furnish every room. Here are a few items that you may consider splurging on when furnishing your new home.

Appliances

While energy-efficient appliances with warranties may cost more, they are worth the investment. You will use the appliances more than other features in your kitchen. Up to date appliances also add to the home’s value.

Mattresses

A good night’s sleep is important and it’s quite possible that you will spend most of your time on this piece of furniture. If a high-quality mattress is out of your price range, then a quality mattress topper might just do the trick until you can afford a high-quality mattress.

Homeowners insurance

The cheapest insurance plan might be good for your wallet, but it might not be helpful long term. Cheap insurance may allow you to pay less, it may not cover you in the event of a fire, robbery or a natural disaster. Make sure that your home is adequately covered and that you can afford the deductible.

A new home is an exciting adventure but you have to spend consciously. Research shows that consumers spend the most amount of money during major life transitions such as a new job, a new family member, or the purchase of a new home. It’s easy to get carried away with creating your dream home but weighing your options and exercising patience is key.