01/26/2025
The 13 biggest mistakes people make when buying a home
1. Assuming every home's price is negotiable. Sellers use different strategies when pricing their home. Sometimes it is priced with room for negotiations, but other times it's priced to get multiple offers, potentially going over the asking price. It's not uncommon for a buyer to lose the first couple of properties they make an offer on because they've underbid when the home is priced to sell.
2. Getting distracted by the "flashy" details and ignoring the actual quality of a home. They focus too much on flashy things, like granite counters and stainless steel appliances, that often have many other problems or are in a bad location, and bypass homes that have been very well taken care of and are in a great location but aren't updated,
3. Not putting down the largest down payment possible. Putting a larger down payment could significantly reduce your monthly spending on your mortgage. It's okay to ask for outside help, like a gift for a down payment if it will help you obtain homeownership faster.
4. Making a lowball offer. One big mistake is offending the seller with lowball offers — let the brokers gauge the clients informally with each other. They are paid to negotiate and have a fiduciary duty to their clients. Buyers think they can simply make all-cash lowball offers and they'll be accepted. While cash is king, it doesn't always get deals done.
5. Limiting your search to a specific style of home. A home is where you make it and if it works for your lifestyle, not necessarily what it looks like on the outside.
6. Not thinking about selling the home one day. Buyers often forget that they'll most likely sell their home at some point. Most everything can be fixed but location, location, location can't be fixed. Buy location, NOT price.
7. Trying to buy without a broker. Buyers are "leaving money on the table" if they don't let a good broker represent them, for theoretical savings of 1% or 2%. Buyers who come direct, without a broker, always overpay.
8. Overlooking important details. Buyers go with what they feel and many times ignore the 'important' details in a home. Such as the condition of the roof, the hot water tank, and the boiler, etc.
9. Passing on a great home early in the search because you think you'll find something better. Some clients pass over ideal properties early on in the search in the hope that they'll find something better. This strategy almost never works. They will pass it up because they saw it too early in their search process and they will spend years looking for that one perfect house they wish they made the offer on. Now the market has moved on them and they are paying more for less which no one likes to do. Buyers should trust their instincts, even if they find something they love right off the bat. Love is hard to find and should be cherished when it happens
10. Not seeing the true potential of a home. Many buyers don't look at the "bones and potential" of a home and instead get "distracted by something immaterial such as bright red walls or ugly kitchen cabinets.
11. Holding out for the "perfect" home. Waiting too long to move forward is a big mistake. If you find a place that checks seven of the 10 boxes you're looking for, you should take it, so later you don’t regret delaying.
12. Focusing too much on online listings. So many clients are adamant about only seeing the one listing they found online in their own research, that they don't realize there are other, often better, options out there. Online listings often portray an artificial picture of a home. People often become disappointed when finally seeing that dream listing in-person and become discouraged.
13. Buying a home you're hesitant about. Overall, I would say, if you have any doubts, second guesses or are spending more time worrying about some aspect of the purchase, rather than being excited about it, then it's not the right home for you and it's probably best to walk away from it.
