While there may be some merit to the idea that you get what you pay for, it isn’t true in every case. While the price of an item should be an indication of its quality, it isn’t always. When you spend a few hundred dollars or less on an item that doesn’t turn out to be worth the price, it’s not generally a big deal. When you spend several thousand dollars or more, it can actually lead to financial ruin. Here are 3 big purchases that can actually break the bank when you don’t do your homework.
Real Estate
There is probably no larger purchase you can or will ever make then real estate. When the stakes are this high, doing your homework is a major necessity. Doing your homework includes getting a thorough inspection from a reputable inspector, reading all contracts carefully, crunching the numbers carefully to make sure you are really getting a good deal and ensuring you have enough of a financial cushion saved to carry you through the unexpected.
Cars
Most people rely on their cars to get them to and from work every day, so ending up with a car that breaks down frequently or racks up major repair bills can be a serious issue. While you don’t have to buy a new car to get a good, reliable car, you definitely want to do some homework. This can include taking cars for sale to a reputable mechanic to check it over with a fine-tooth comb before purchasing, reading reviews on the car from other owners or even using the Consumer Reports car buying guide.
Major Home Repairs or Renovations
While home repair and renovations might not be products, they are definitely services that you purchase. If you aren’t careful, they are services that can end up costing you double or even triple the price you anticipated, not to mention severely decreasing the value of your home. When contractors fail to get the necessary permits before doing any kind of major construction, you can actually end up having to pay to have the work undone before you can sell it. If they don’t do the job right the first time, you can also end up paying again to have someone else do it right. Last but not least, shoddy construction is a major liability that can end up getting you sued if someone ends up injured as a result.
The bottom line is, the more you spend on something, the more important it is to do your due diligence before shelling out cash or signing on the bottom line. While it may sometimes seem overwhelming to wade through all the many options, let alone find the best one, it will be well worth it in the long run. Doing so can save you thousands of dollars worth of regret.
