9 First Time Home Buying Mistakes To Avoid
/Are starting to house hunt? First time home buyer? Here’s 9 common mistakes house buyers make when it comes to buying their first home.
Not getting pre-approved before looking at homes. You should always speak with a lender before you officially start looking at homes. Your budget is extremely important when it comes to buying a home and an official pre-approval letter from a lender will be required to view most homes outside of Open House events. You don’t want to fall in love with a house you can’t afford. Or have unrealistic expectations of what’s truly in budget. Not to mention there’s different types of loans that have different requirements for the home buying process. If you’re loan is an FHA vs. conventional loan there will be differences in the home buying process. Not sure who to talk to about lending? Reach out to me, I’d be happy to recommend some amazing local lenders with knowledge and experience.
Understanding compromise and flexibility. As a real estate professional, I’d love to tell you that you can have your cake and eat it too. However, that is rarely the reality of the home buying process. Have a firm idea of what are needs vs. wants are and what you’re willing to compromise on verse what you can’t budge on. You may need to have a further commute to get the acreage you want or sacrifice that beautiful remodeled kitchen to be closer to work. Curious about a specific neighborhood? Reach out, I’d be happy to provide some insight to recently sold homes in the neighborhood.
Finding the right agent. So, you go to an Open House and you love it. You start talking to the agent- disclosing your budget and how much you'd pay for the property and what you LOVE about the home. You want to write up an offer on the spot. You’ve just made a HUGE mistake. That agent represents the homeowner who is SELLING the home- not you. You just disclosed a ton of information that could be used against you. YOU COULD HAVE JUST COST YOURSELF THOUSANDS OF DOLLARS! Start house hunting smart- choose an agent you are comfortable with, an agent who sits down and discusses your wants, your needs, an agent who knows the market, someone who can protect your interests from the start. I’d be happy to sit down and talk with you.
Looking too much online. A smart homebuyer does their due diligence. Knowledge is power! Check Megans Law, research the local school district, the local municipality, and other things that are important to you. Looking too much online, referring to county assessment, Zillow estimated value, and other ‘real estate’ sites with conflicting information. Sites like Zillow simply use an algorithm to make an educated estimation of a home values. The home could be worth significantly more or less depending on multiple variables. When it comes to pricing a home or calculating an ‘offer’ price there is significant research that goes into it. Zillow hasn’t been in every home in the neighborhood. Zillow doesn’t know if the home has a new kitchen, granite countertops, or if the home needs a new furnace or roof. Ask your agent to show you comparable sold properties, review market conditions, and ensure you’re offer is solid.
Expecting your home to increase in value. Markets can change drastically. You could build equity at a very modest pace or in some rare cases lose value.
Underestimating repairs and expenses. Even a new home will require maintenance and upkeep. And unexpected expenses are bound to occur when you own a home. Play it safe and don’t exhaust yourself financially. General rule of thumb, budget 1% of the homes cost for yearly upkeep and expenses.
Feeling rushed. Go with your gut. You should never feel rushed or pressured into buying a home you aren’t comfortable with. The pressure could be from family, friends, or your agent. This is going to be your home, you’re going to be making one of the largest investments of your life. You should be comfortable and confident. However, this does not mean drag your feet. In a hot market it’s not uncommon for a home to be on the market less than a day. Take your agents advice and be prepared to make that dive. You’ll kick yourself in the rear when you see the home you loved get sold because you were second guessing yourself. It’s an all too common mistake.
Falling in love with a home. Getting emotionally invested can be easy when you’ve found the perfect home and you’ve already envisioned your life there. Stay focused and remember a house is an investment.
Buying when you should be renting. I know, it’s crazy right? A real estate agent telling you that buying might not be right for you. But the truth of the matter is- it might not be. Should you be renting or should you buy a home? Let’s talk and find out.
If you have any questions please don’t hesitate to reach out! I would be happy to answer any questions you have and help you with your real estate journey!
