Top Mistakes First-Time Home Buyers Should Avoid

According to the National Association of REALTORS®, approximately one-fourth of the people who purchase houses each year are first-time home buyers. Many locals rely on real estate agents in Jefferson City, MO to help them avoid the most common first-time home buyer mistakes.

Although a REALTOR® will help you sidestep them, keeping these potential mistakes on your radar is important.

Here are the top first-time home buyer mistakes.

Failing To Establish a Budget

How much can you afford to pay for a home? Before doing anything else, seek to answer this question.

A recent CBS News report revealed that about 18 million Americans are “house poor,” meaning they devote over 30% of their monthly income to covering their mortgages and other household expenses.

You should never shop for a home without a clear budget. Crunch the numbers to determine a budget for buying your first home.

Take things a step further by obtaining a mortgage preapproval that clearly outlines how much a lender will provide. This will prevent budget overestimation and enable you to perform accurate home loan comparisons.

And don’t forget about the other costs that sometimes accompany buying a house. Examples include:

• Appraisal fees
• Closing fees
• Property taxes
• Homeowners’ insurance
• Ongoing maintenance expenses

Shopping for Homes in the Wrong Locations

Whether you’re purchasing your first or tenth home, the first rule of buying real estate remains “location, location, location.” This age-old cliché dates back to a real estate advertisement printed in the Chicago Tribune nearly 100 years ago. It spells out the only thing that should be on your mind when initially considering buying a home.

Oftentimes, first-time home buyers fall in love with houses without spending enough time considering their locations. It isn’t until they move into them that they begin questioning their whereabouts and realizing they aren’t ideal.

Make sure to only shop for homes in safe locations close to amenities, like schools, hospitals, shopping centers, and other essential destinations. This will make living in your first house more convenient and ensure it maintains its value over time.

Focusing Exclusively on How Homes Look

As you walk through a house during your first home search, you might fall in love with its appearance. You will see its shiny kitchen countertops, spacious walk-in closets, and beautifully finished basement and think, “I can’t wait to live here!”

This could be the perfect home. However, you shouldn’t decide this until you’ve looked at it from every angle. Does it have:

• A durable roof that will last for at least a few more years?
• A strong foundation that doesn’t have any cracks?
• A reliable heating and cooling system that keeps the temperature comfortable?

One of the biggest first-time home buyer mistakes is overlooking these aspects of a house.

Choosing Not To Schedule a Home Inspection

Buying a house is one of the biggest investments you will ever make. For this reason, you should never pass up the opportunity to conduct a home inspection before purchasing one.

In the past, scheduling a home inspection was a no-brainer for both first-time and repeat buyers. However, as the real estate market has heated up recently, some people have begun waiving their rights to home inspections to make their offers more enticing. The National Association of REALTORS® reports that between 15 and 20% of people do this.

Do not skip a home inspection under any circumstances. Hire a reputable home inspector to conduct the inspection and verify that they have “Errors and Omissions” insurance coverage to protect you from potential home inspection oversights.

Rushing Through the Home-Buying Process

Although the home-buying process is exciting for many first-time buyers, the process can sometimes be long. You might spend anywhere from a few months to over a year finding the right home and getting an offer accepted.

This may leave you feeling emotional about buying a house and send your stress levels skyrocketing. As a result, you might be tempted to rush through the process so you can start moving into your first house sooner.

Resist the urge to rush, taking your time at every turn. This will increase your chances of avoiding unnecessary mistakes.

Let Us Help You Steer Clear of These Common First-Time Home Buyer Mistakes

Purchasing a home is a big step. Depend on the REALTORS® from Associated Real Estate Group to help you avoid first-time home buyer mistakes.

Contact us at 573-632-8500 to get your first-time home buying experience off to a strong start.