Avoid First-Time Buyers Mistakes

Selecting the most high-priced home. Simply because you can qualify for a loan to buy that high, doesn’t mean you necessarily should. Some buyers maximize the amount they spend but then have nothing left over for savings. They get over their head quickly then when they move into home ownership.

Not shopping around enough. This applies to seeing enough homes and searching for the right mortgage. “We are in a crazy market, and many buyers feel rushed,” says Mark Ferguson, a real estate professional and creator of Invest Four More. Buyers likely should be in a position to act quickly in certain areas but they don’t need to feel pressured to buy the very first house they see. They need to take the time to understand the markets as well as its values so they can feel well informed regarding their purchase. They also should take into account the many costs of home ownership, including mortgage, insurance, taxes, maintenance, utilities, and unexpected incidentals, Ferguson says.

Being indecisive. On the same note, home buyers can’t be paralyzed to do something in the market either if they want a home. Many first-time home buyers “suffer from the fear of missing out,” says Kwame Joseph, a real estate professional with Coldwell Banker Residential. “They may find a home that they love, and though their gut tells them it’s the right house for them, they believe that there’s something better.” Joseph says he’s had markets make an offer and then still want to view other properties. But backing out at that time could become costly.

Working with the seller’s agent. Some buyers receive the assistance of the seller’s agents, but they are there to represent the seller, not the buyer. Often, they don’t realize that the buyer’s agent will be compensated via a commission split from the seller’s side so there’s “no out of pocket expense” to first-time home buyers seeking an agent for themselves.