First time home buyers often make mistakes that prove to be costly. As a Real Estate Agent I spent a lot of time with first time home buyers, and here are the top five mistakes that I noticed.

Mistake # 1

Not hiring a Buyers Agent - A Buyers Agent is an Agent that will represent only the Buyer. Why is that important to first time home buyers? Well I actually think that it is important for all buyers to hire their own agent. Most people do not realize that Real Estate Agents work for the sellers, unless you have a Buyers Contract with them. This means that without a contract there are certain things that the agent can not disclose to you the buyer. It also means that her number one priority is to get the highest price and quickest sell for her client the seller.

Mistake # 2

Being too Anxious - Sometimes first time buyers are so anxious to get into a home that they often will neglect to look at all homes in their price range. They find a home that they like and are ready to go full steam ahead, instead of looking at all options. Once the offer has been accepted and the Earnest Money has been paid there's no backing out without loosing that money and possibly being sued by the sellers. This is where having a Buyers Agent also helps. A good Buyers Agent will write in enough contingencies that the Buyer can legally back out.

Mistake # 3

Procrastination - Yes I know, we just discussed being too anxious. There are some first time buyers that tend to go too slow, and miss out on a good deal. With the buyers that I worked with fear seemed to be the main factor that caused this problem. They enjoyed looking a homes, but when we started discussing the need to place an offer it suddenly became very real to them that this was a big investment. I am not saying that one should not consider that, of course it is a big investment. But often times waiting too long costs many people to loose out on a home that was perfect for them.

Mistake # 4

Not considering all aspects of Home Ownership. When renting if our plumbing gets backed up or we get infested with termites or other pests we simply pick up the phone and call the landlord. Not so simple when you own. From the very inexpensive to the most expensive repairs, they are all on the owner. Sometimes first time buyers don't budget for such occasions and find themselves unable to make the repairs. Other aspects of ownership that need to be considered are taxes, insurance, and maintenance.

Mistake # 5

Buying too much house - Time after time I have seen people, especially young couples that will buy $150,000 home just because the Bank or Mortgage Company told them that how much they could afford. Remember the Banks and Mortgage Companies are going to approve you for the maximum amount that you can afford. I would always advise my customers to get pre-qualified, and then take the estimated payment that they are qualified for and save it every month until the loan is closed. The purpose of this is too see just how hard it is to make that payment every month. If you can't do it for two or three months then chances are you won't be able to do it for 15 - 30 years.

Learn more about this author, Regina W.
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