And how to avoid them!
Buying your first home can be exciting, but it is important that you steer clear of these common mistakes.
1. Not getting pre-approved first. It’s important to speak with a local lender before
shopping for your first home so you have a clear picture of what you can afford, and also what your payments will be.
2. Calling the real estate agent listed on the For Sale sign. The agent on the sign is the listing agent and he/she works for the seller. Their job is to sell the house at the highest price possible. You should consider finding a buyer’s agent to represent YOU. Their job is to get you the house for as little as possible (or negotiate some other favorable terms for you, like getting all repairs done or having the seller pay all of the closing costs). The buyer’s agent fee is generally paid by the seller.
3. Working directly with the site agent at a new construction site. Again, that site agent works for the seller, the builder, not you. Get your own representation.
4. Skipping the home inspection to save a few dollars. While the buyer is responsible for paying for the home inspection at the time of the inspection ($200-350 depending on the size of the home), deficiencies brought to your attention during the home inspection which are documented on the report can then be requested to be repaired by the seller. Oftentimes the seller will agree to make hundreds or even thousands of dollars in necessary repairs.
5. Making a lowball offer on every house. Your buyer’s agent can assist you in determining if the house is overpriced, competitively priced or bargain priced. Making a lowball offer on a well-priced home (and asking for all closing costs to be paid as well) will likely result in a rejected offer and possibly a missed opportunity for that perfect home.
6. Opting out of purchasing owner’s title insurance. Again, trying to save a few dollars could result in having to pay thousands in court costs or possibly losing your home if title problems surface after you purchase the home. Owner’s title insurance is only paid once and protects you while you live in that home and even after you move.
7. Wanting to see EVERY house on the market, even those that don’t really meets your criteria. Spend some time creating Must Have, Don’t Want and Like to Have lists. If you find THE house of your dreams, you should act on it or risk losing out on that home. Taking a “wait and see what else comes along” approach may result in losing the right house for you.
8. Not asking your agent, lender, home inspector, etc. questions. This is likely your largest purchase to date so you want to be sure that you understand the entire home buying process. Ask before you sign the initial paperwork and continue to ask questions throughout the entire process.
9. Not looking past the paint colors, carpet colors or seller’s lack of housekeeping and decorating ability. When considering a home, look past the things that are relatively easy to change, such as paint and carpet colors and existing furnishings (that won’t be there when you move in). Look at things you can’t easily change, like location and floor plan.
Questions on the home buying process? Email us at concierge@lizmoore.com, we'd love to help! We have many agents who specialize in working with first time home buyers. Or, click below to download our free Home Buyer's Handbook.
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