18 common mistakes homebuyers make and how to avoid them
Navigating the complex world of homebuying can be fraught with pitfalls, so we’ve compiled insights from seasoned realtors and real estate experts to illuminate common missteps. From reflecting on true desires and affordability to comparing mortgage offers carefully, discover the top 18 pieces of advice to avoid the all-too-common errors that homebuyers make. Here are 18 common mistakes homebuyers make and how to avoid them:
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- Reflect on True Desires and Affordability
- Avoid Rushed Purchases With Research
- Plan for Realistic Home-Buying Timelines
- Review Property Disclosure Statements Carefully
- Lock in Early to Build Equity
- Research Neighborhood’s Long-Term Potential
- Invest in a Thorough Home Inspection
- Understand All Costs Before Buying
- Get Pre-Approved for a Mortgage
- Consider Long-Term Needs and Goals
- Be Cautious of Market Trend Beliefs
- Get Professional Inspections for Hidden Issues
- Inspect for Unseen Water Damage
- Check Roof and Attic Condition
- Assess Property’s Future Flexibility
- Understand Building Codes and Co-op Rules
- Consider Seasonal Impacts on Properties
- Compare Mortgage Offers Carefully
Reflect on True Desires and Affordability
Let me share some wisdom I’ve gathered over the years as a realtor here on the Big Island of Hawaii. You see, buying a home is one of the most significant decisions you’ll ever make, and it’s easy to get caught up in the whirlwind of excitement and anxiety that comes with it. But if there’s one common mistake I’ve seen homebuyers make time and time again, it’s not being honest with themselves about what they truly want and how much they can genuinely afford.
Picture this: you’re standing on the shores of the Pacific, gazing at a stunning sunset. You dream of a life here, but dreams can be tricky. They need to be anchored in reality. Many buyers start their journey with grand visions—maybe it’s a sprawling estate with ocean views or a cozy cottage nestled in the lush hills. But along the way, they often lose sight of what they genuinely need and want. They get swayed by properties that don’t align with their lifestyle or budget.
The first piece of advice I’d give you is to take a step back and reflect on what truly matters to you. Do you need that extra bedroom, or is a spacious yard for your kids to play more important? Are you dreaming of a quiet retreat, or do you crave the hustle and bustle of a vibrant community? Be honest with yourself. It’s easy to get dazzled by features that, in the end, might not make your heart sing.
Next, let’s talk about money. Ah, the root of many a homebuyer’s woes. It’s tempting to stretch your budget, especially when you fall in love with a place that seems just out of reach. But here’s the thing: financial stress can turn that dream home into a nightmare. Work out what you can afford comfortably. Factor in all the costs—mortgage payments, maintenance, taxes. Be realistic. There’s no joy in a beautiful home if you’re constantly worried about making ends meet.
And finally, make decisions based on forward momentum, not fear. Fear is a sneaky thing. It whispers in your ear, makes you second-guess, holds you back. When you find a home that feels right, that aligns with your needs and budget, don’t let fear paralyze you. There’s no rewind button in life, my friend. You can’t go back and grab that opportunity you let slip away. Trust your instincts, make your move, and keep looking ahead.
In the end, buying a home is about creating a space where you can thrive, where your dreams can take root and grow. Be honest with yourself, be wise with your money, and don’t let fear hold you back.
James Morrison, Realtor, The Papakea Collection
Avoid Rushed Purchases With Research
A common mistake homebuyers make is rushing into a purchase without understanding the long-term implications. Impulsive decisions often lead to buyer’s remorse. To avoid this, I always advise homebuyers to take their time, conduct thorough research, and seek professional guidance.
Understanding the local real estate market, evaluating future resale potential, and considering their long-term housing needs are crucial steps. Patience and a well-informed approach can help buyers avoid costly mistakes and find a home that aligns with their lifestyle and financial goals.
Catherine Mack, Owner, House Buyer Network
Plan for Realistic Home-Buying Timelines
A common mistake is underestimating the time needed to buy a house. Many clients think transactions happen overnight. Buying a house usually takes weeks or months due to paperwork and inspections. Being patient and planning your time can prevent unnecessary stress. It helps to have a realistic timeline and stick to it.
Garrett Lamb, Owner, We Buy Houses Fast
Review Property Disclosure Statements Carefully
As a real-estate lawyer, a common mistake I see homebuyers make is not thoroughly reviewing the property disclosure statement. The property disclosure statement discloses important details about the property, such as known defects or issues. Homebuyers sometimes treat this as unimportant paperwork and rush through signing it. However, failing to carefully review the disclosure statement can lead to unexpected and expensive issues later on.
For example, I had a client who purchased a residential investment property without reviewing the disclosure statement. Shortly after purchasing the property, they discovered foundational issues which required $30,000 to repair. Had the client reviewed the disclosure statement, they would have seen that the seller was aware of minor foundation cracks. While minor cracks may not seem significant, in this case, they were an indication of a larger issue.
To avoid this mistake, take the time to thoroughly review the property disclosure statement with a real-estate lawyer. Ask your lawyer to explain anything that is unclear and ensure any concerns are addressed before finalizing the purchase. A small investment of time upfront can save you from major headaches and unforeseen costs down the road. Your real-estate lawyer can also review the disclosure statement to determine if further inspection is required based on the information provided.
Ladislav Beganyi, Owner, Beganyi Professional Corporation Law Firm
Lock in Early to Build Equity
One common mistake I have seen first-time home buyers or investors make is waiting to save enough to buy a property. While I agree that it is important to have a solid financial situation before buying a house, this mistake often causes them to pay more than what they planned. Historically speaking, property prices have always gone up. So, while a six-month or a year-long wait might not affect much, a lot can change over five years or more.
People need to understand that not only do property prices go up, but interest rates also go up. As a result, their savings will keep falling short the more they wait. So, to avoid this mistake, it is better to get locked in as soon as possible and build your equity with the market. Spending time in the market will cost you less compared to saving first and then entering the market.
Peter Juhasz, Property Investment Expert, Founder, Pluxa Property
Research Neighborhood’s Long-Term Potential
A common mistake homebuyers make is overlooking the long-term potential of a neighborhood. Often, they focus solely on current conditions rather than future developments. To avoid this, I advise clients to research planned investments in infrastructure and local amenities. Understanding the broader trajectory of an area not only ensures a wise investment but also aligns with their long-term living needs. This forward-looking approach has helped many find homes that grow in value and enhance their quality of life.
Lance Doty, Owner, Home Buying Guys
Invest in a Thorough Home Inspection
Skipping the home inspection is a common mistake. It can lead to unexpected repair costs down the road. Always invest in a thorough inspection to uncover any hidden issues before finalizing the purchase. This step ensures you’re fully informed about the property’s condition, helping you make a more confident and financially sound decision.
Liz Hutz, Owner, Liz Buys Houses
Understand All Costs Before Buying
One common mistake that I have observed as an agent, especially for first-time home buyers, is that they do not have a clear picture of the costs that go into buying a home.
When buying a home, there are hidden costs that are usually not advertised in the home-buying process and are always realized after the process has already begun. These hidden costs include property taxes, homeowners’ insurance, and, in some cases, repairs or renovations. These costs can greatly increase the cost of purchasing a home, and most buyers tend to either ignore or lack information about them.
The solution to this is to take time to get the correct information prior to pulling the trigger on a home purchase. This information can be made available to you by the agent and even through research.
Chris Hoffman, Owner, Lehigh Valley Just Listed Real Estate
Get Pre-Approved for a Mortgage
One common mistake that many first-time homebuyers make is skipping the pre-approval process for a mortgage before they start looking for a home. Pre-approval is exactly what it sounds like: It’s typically a letter from a lender indicating that they are tentatively willing to lend a certain amount to you, pending further verification of your financial details.
Although a pre-approval isn’t a guaranteed loan offer, it does require a lender to review your income, assets, debts, and credit history. The advantage of getting pre-approved is that it clarifies exactly how much you can afford, which prevents the heartbreak of falling in love with a house that’s out of your financial reach. It also signals to sellers that you are a serious buyer, which can be a significant advantage in competitive markets. Additionally, some real estate agents insist on seeing a pre-approval before they’ll start showing you homes.
My tip for avoiding this mistake is straightforward: contact your mortgage lender and get pre-approved before you begin your house hunt. This will ensure you’re looking at homes you can realistically afford and will streamline the entire buying process.
Michael E. Farah, Founder, Realtor and Real Estate Attorney, The Farah Law Firm, P.C.
Consider Long-Term Needs and Goals
It’s crucial to work closely with a trusted and experienced real estate agent who can help you identify potential red flags and guide you towards making a smart investment. They can also provide valuable insights and advice based on their knowledge of the local market and industry trends.
Additionally, it’s essential to take the time and effort to thoroughly research and understand the neighborhood you’re interested in buying a home in. Factors such as crime rates, school districts, and nearby amenities can significantly impact your overall satisfaction with your new home.
One common mistake that homebuyers make is not considering their long-term needs and goals when purchasing a property. Many first-time buyers may focus solely on their current needs, such as the number of bedrooms or proximity to work, without considering how their lifestyle may change in the future.
It’s important to have a clear understanding of your long-term plans before making a significant investment like buying a home. Are you planning to start or expand your family? Do you foresee any job changes or potential relocation in the future? Thinking about these factors can help you make a more informed decision and avoid making a costly mistake.
John Jones, Real Estate Investor, Sell My House Fast Now
Be Cautious of Market Trend Beliefs
A lot of homebuyers mess up by overestimating market-trend sustainability. We tell clients to be cautious about believing markets will always rise. Trends can change, causing value dips you didn’t plan for. Research past trends and be ready for changes to avoid getting caught. This keeps you from buying a home at a bad market peak.
Amber Couron, Owner, Home Buying Hounds
Get Professional Inspections for Hidden Issues
Falling in love with a property without fully assessing its condition can be a mistake. Early in my real estate career, I encountered a couple who fell head over heels for a charming older home, only to discover later that it needed extensive repairs they hadn’t budgeted for.
To avoid this, I recommend always getting a professional inspection before committing. It’s like having a mechanic check under the hood before buying a used car—essential for uncovering any hidden issues that could turn into costly surprises down the road. Taking this precaution can save both money and headaches, ensuring your dream home doesn’t become a nightmare investment.
Jordan DeGusipe, Licensed PA Realtor, RE/MAX Professionals
Inspect for Unseen Water Damage
As someone who has seen many homebuyers struggle with costly repairs, one mistake buyers often make is not thoroughly inspecting the home.
When my team does water-damage restoration, we frequently find issues that went unnoticed during the initial home inspection. Small leaks or minor mold problems can turn into major headaches if left unaddressed. It pays to hire specialists to check the plumbing, attic, basement, and any other areas prone to damage.
Don’t rely only on a general home inspector. Get multiple expert opinions on any areas of concern. It may cost a bit up front, but can save tens of thousands in unforeseen repair costs down the road. Also, check if any permits were pulled for remodels or additions—and if work was done to code.
Buying a house is a big investment. Do your due diligence to understand exactly what you’re getting into. If issues are found, don’t be afraid to negotiate with the seller to get repairs done or lower the selling price. Your dream home might still be the right choice if the fundamentals are solid and problems are properly addressed before closing the deal.
Jiri Smetana, Owner, PuroClean of Southlake
Check Roof and Attic Condition
One common mistake homebuyers make is not checking the condition of the roof and attic. As a home exterior specialist, I’ve seen far too many buyers purchase homes without realizing the roof needed replacement or that water damage existed in the attic.
Have a professional roof inspector evaluate the roof’s age, condition, and estimated remaining lifespan. If it is nearing replacement, negotiate with the seller to get it replaced or lower the offer price. Check the attic yourself for any signs of leaks, like water stains, mold, or damaged insulation. These issues are expensive to fix but often missed during a standard home inspection.
Also, check that all attic vents are clear and functional. Proper attic ventilation is key to preventing premature roof aging and high energy bills. If vents are blocked or missing, the attic temperature and humidity can spike, damaging the roof from underneath.
As a final tip, choose a local roofing contractor to inspect the roof. They understand regional weather challenges and building codes to properly assess conditions. An investment in a professional roof inspection and any necessary repairs will save thousands down the line. Take it from me—a new roof and attic remediation are not costs you want to inherit as a new homeowner!
Kevin McLaughlin, Owner, Heritage Exteriors LLC
Assess Property’s Future Flexibility
Another mistake that homebuyers make, but is not often thought about, is the “future flexibility” of the property. Future flexibility is a term used to describe the ability of a property to accommodate changes in needs and conditions over time, such as family growth, working from home, or a change of lifestyle.
Rather than just meeting your present requirements for a house, consider how it may serve you going forward. For example, your changing needs can render a home with inflexible layouts or limited expansion options useless, resulting in expensive renovations or even moving. This may include things like adding rooms in the future, creating multifunctional spaces, or altering layouts without carrying out major structural alterations.
When looking for houses, consider ones with adaptable features that are inherently flexible, e.g., space for future renovations or easy-to-alter configurations made by architects. Speak with realtors about what could be done to protect your investment’s value and see your ideal future home.
This can prevent you from outgrowing your home too soon due to its future adaptability, making sure it always best suits your life situation.
Johnny Austin, Owner, Sell My House Now LLC
Understand Building Codes and Co-op Rules
As the founder of Intrabuild, a common mistake I see homebuyers make is failing to understand NYC’s complex building codes and co-op rules. These guidelines significantly impact what renovations are possible and their costs. Every building has specific requirements outlined in their proprietary Alteration Agreement. If you don’t review this document with experienced professionals, you could end up with an apartment that doesn’t suit your needs or budget.
We’ve had clients buy apartments they loved, only to find their renovation plans weren’t feasible. For example, one couple wanted to reconfigure their master bathroom, but plumbing rules prohibited moving fixtures. They had to abandon their plans, losing time and money. With the right guidance upfront, they could have found an apartment better suited to their goals or negotiated a lower price.
My advice is to work with professionals like architects and contractors before purchasing. Have them evaluate the building and unit to determine what’s allowed and estimate renovation costs. If the numbers don’t work or the rules are too restrictive, keep looking. Buying an apartment is easy, but making it your own in NYC is complicated. Do your due diligence to avoid problems that can derail your dream renovation.
The investment in expert advice will ensure you find an apartment aligned with your needs and budget. Then you can renovate with confidence, avoiding unexpected costs and roadblocks. With proper planning, you’ll love the end result of your NYC home renovation.
Nick Chatzigeorgakis, CEO, Intrabuild
Consider Seasonal Impacts on Properties
Home sellers will choose the time of year that will best showcase their home. This can be problematic for homebuyers, who often take a home at face value. I’ve met many homebuyers who have fallen into this trap, viewing a home in all its summer glory, with roses and a manicured lawn. Unfortunately, winter months can present a very different reality for some properties, with flooding and deep snow.
It’s important to take a deep dive into social media and press reports to get a clear picture of how properties fare in bad weather. Ask around the area and look for telltale signs. Check if the property is in a flood zone or near a river, creek, or lake.
Richard Ala, Director & Founder, Six Brothers Contractors LLC
Compare Mortgage Offers Carefully
Accepting the first mortgage offer without comparing rates is a common mistake made by homebuyers. This mistake often happens when buyers feel pressured to finalize the financing quickly.
I highly recommend taking the time to shop around and compare mortgage rates from different lenders. This approach can lead to finding significantly better deals, saving thousands of dollars over the life of the loan. By carefully evaluating multiple options, securing a lower interest rate and more favorable terms becomes possible. This process highlights the importance of patience and thorough research in making financially sound decisions.
Shawn Plummer, CEO, The Annuity Expert
