First-time home buyers are facing some stiff competition this summer, and while they may feel compelled to make a hasty real estate decision, doing so could lead to financial remorse or home buyer regret, according to Curbed.com. In their article, real estate professionals share some of the most common mistakes by first-time home buyers, including:
Choosing the most expensive home. Just because you can qualify for a loan to buy that high, doesn’t mean you necessarily should. Some buyers max out how much 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 shopping 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 need to be able to act quickly in some areas but they don’t need to feel pressured to buy the first house they see. They should take time to learn the markets and its values so they can feel more confident about their purchase. They also should take into account all the 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 act 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 point could become costly.
Working with the seller’s agent. Some buyers get the help 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 through 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.