First-Time Homebuyers: Common Mistakes to Avoid

by Robin Anderson Real Estate 05/24/2020

Photo by Mohamed Hassan via Pixabay

It’s part of the American DNA to want to own a home. It can be your immense joy or become a nightmare if you don’t avoid some of these first-time buyer lapses in judgment.

What to Avoid

  • Overbuying. The mantra used to be “buy the biggest house you can afford.” After all isn’t bigger always better? The challenge is that affordability is subjective. If you’ve never owned a home, you don’t know the intangible costs. A bigger house has more space to live, but it also has more space to heat and cool. A large yard is fantastic for the kids, but it comes with landscaping and maintenance responsibilities. Go big if you like, but do it with your eyes wide open. Ask your agent to help you determine ongoing costs for the homes you visit in your quest.
  • Buying just to buy. Yes, that down payment is burning a hole in your virtual pocket. You want it invested in property so that you can get on with the business of living. But unless you have a time-restriction on funds that need reinvesting, take your time to get what, and more importantly, where you really want. Visit neighborhoods during the day on different days, in the evening and on weekends. Drive around the nearby streets too. This will help you get more of a feel for the overall area.
  • Becoming emotionally attached to a home you don’t yet own. When you’re shopping for a home, it’s easy to find “THE ONE” that checks all your boxes — except the budget box, or the timeline box, or the practicality box. When home stagers’ do their job well, you’re guaranteed to have an emotional reaction to a house. Their entire goal is to trigger your emotions so that you “have to have” that house. But emotions can be fickle. What you love today in this house could be the thing you despise in 10 years of living there. It’s essential that you spend time with your buyer’s agent to determine the non-negotiables you want for your new home.
  • Entering a bidding war. When you have unlimited funds, perhaps you can afford to pay more for a home than the market price. But lenders limit the size of a mortgage based on a lot of factors you may not be aware of in the housing market. Just because the price of a house goes up doesn’t mean you can get a loan to cover the full difference between what you pay and what the market says it’s worth.

Most of all, don’t buy without representation. Your expert buyer’s agent knows all the ins and outs of the local market and can steer you clear of pitfalls, potholes, and potentially poor choices. They negotiate on your behalf and represent your (not the seller’s) interest in those negotiations. Rely on them to show you homes that fit your list and check your boxes without breaking the bank or putting you in an overstretched situation.

About the Author
Author

Robin Anderson Real Estate

“My Passion is people and relationships and I promise to provide my clients with exceptional service tailored to their individual needs.” -Robin Anderson 

Georgia native, Robin Anderson brings her passion for people and her love of homes to work for her clients. She and her husband, Andy, have been married for over 30 years and have two adult children, Ellen and Drew. They currently live in Fulton County, but Robin has lived and invested in properties throughout metro Atlanta as well as helped clients buy and sell. She has been integral to many real estate endeavors including designing and building several custom homes, remodeling homes, subdividing land, managing rental properties, and buying and selling properties. She spent her first 3 years in real estate working with a new home builder, and she has spent the last 6 years working with buyers and sellers in her own community. Robin is highly motivated but sensitive to the fact that buying and selling homes can be an emotional experience, so she makes it a priority to keep clients closely informed throughout the process and strives to produce quick results. She appreciates the opportunity to help her clients navigate the real estate process, and she aspires to deliver quality customer service that is both informative and positive. She is driven to provide outstanding service for her clients and she is focused on building successful and lasting relationships with her clients. This personalized service earns her enthusiastic referrals from clients she is pleased to call friends.Edit

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