Six “First-Time” Homebuyer Mistakes That Can Cost More Than Just Money

In Buyers by Doug PhelpsLeave a Comment

It’s difficult to sit back and watch someone you care for do something that is detrimental to their goals in life. In that respect, time and time again, real estate professionals have watched first-time buyers struggle with their home buying experience.

Although this article is directed at the first-timer, anyone buying a home will find these tips helpful.

Let’s take a look in this post at the first three mistakes to avoid:

Don’t guess at what you can afford.
Many novice home buyers spend hours researching homes, only to fall in love with something they simply can’t afford. One of the first things buyers must do is to talk with a qualified lender and get pre-approved for a mortgage. In our current Front Range market you can’t afford to guess at how much you can afford. You must know your limit or you may lose a deal because the sellers accepted a “sure thing” offer from a pre-approved buyer.

Don’t fail to budget for taxes and other expenses.
There’s no getting around property taxes, so they must be budgeted into your financial equation. However, there are many other expenses the first-time buyer may neglect to consider. Homeowners association dues, interior and exterior maintenance, and higher electric and water bills associated with owning a home are some of the other costs first time home buyers tend to underestimate when shopping for a house.

Have realistic negotiation expectations.
Our market is a seller’s market and low-ball offers likely will eliminate you from consideration. Your offer should be reasonable, and if a bidding war breaks out, having a few other homes in mind makes it easier to walk away if the price soars beyond your comfort zone.

In my next post I will take you through the remaining three, to help you bypass the pitfalls often related to first-time home buying.

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