home buying

Don't Make These Mistakes When Buying Your First Home!

When it comes to buying a home, theres a lot of moving parts to keep track of and things can fall through the cracks. Especially when its your first home purchase, you're bound to make mistakes. But some mistakes are more costly, time consuming, or detrimental than others and it's easier to just avoid them in the first place. We're breaking down the most common first time home buyer mistakes and how you can easily avoid them!

The number one mistake that first time home buyers make is not figuring out what they can afford and how much home they can get with their money. Without knowing what you can afford, you can end up wasting your time looking at homes that are well above your budget, or settling for a home because you aren’t sure of how you can maximize your money or what you can actually afford. In order to avoid this, it’s important to sit down and take a look at your finances and use a mortgage calculator to see what you can and are willing to spend on your first home purchase. Check out the link in the description for a free and easy to use mortgage calculator and some additional resources.

Another common mistake is shopping without a real estate agent. While browsing around to see what you like and don’t like and how homes are priced in areas you’re looking at is good practice, it can be detrimental to try and tackle your entire home shopping process without the support of a real estate agent. An agent is able to pull insider information on your housing market, access listing databases that are unavailable to the general public such as Multiple Listing Service, and help you make your offer, negotiate price, and file the required paperwork all which is extremely beneficial for an inexperienced buyer. Feel free to reach out to us with any questions about how to choose the best agent for you, or check out our video covering the most important questions to ask a potential real estate agent.

As a first-time buyer, you can be drawn in by the style or feel of a home and easily forget about the other factors that you need to consider when making a home purchase. Something that many buyers forget when buying their first home is the home’s resale value. If you’re looking for your “forever home” resale value might not feel important and can be easily dismissed, but it’s essential to remember that life and situations change and you may find yourself needing to sell in the future. Make sure you’re asking questions about any potential developments in the area and doing research about the neighborhood to see what you can expect to make when reselling your home.  

A common mistake that a lot of first time home buyers make is buying a home without completing a home inspection first. Home inspections only cost a couple hundred dollars and are essential to making sure that you’re getting a good deal and won’t run into any issues down the road. With some listings a home inspection has been purchased and completed by the sellers, but it never hurts to hire someone to come in and look on your behalf as well. An inspector will provide a thorough report of the electrical, plumbing, heating and cooling systems, and more to spot anything that could be a potential problem. If the inspection turns up anything, you can then decide if you want to buy the home as is, try and negotiate with the seller to fix problems or reduce the price, or even walk away from the deal. But if you’ve already purchased the home, you’re likely stuck with it as is.

Our final common but extremely avoidable mistake is leaving closing costs and moving fees out of your budget. When you’re taking a look at your finances and calculating what mortgage payments you can afford, don’t forget to factor in your closing costs and moving fees as well as additional cushion for anything that may arise. By including these extra costs, you’re way less likely to end up over extending your money or buying a home you can’t actually afford. Closing costs can fall anywhere between 2 and 7% of your home’s value, and moving can get costly, so it is important to add in these factors at the beginning so you aren’t pulling from emergency funds or your down payment.

WORK WITH US

We help our clients make the best decisions by focusing on their long-term goals. Our mission is to help our clients build wealth through real estate. Contact us today and we are happy to serve you.

CONTACT US

FOLLOW US ON INSTAGRAM