Buying a house is a really stressful situation. There is really no way around it. But there are a few things to avoid when buying a house. This list is not exhaustive, it’s just some of the biggest mistakes that I have seen homebuyers make. Let’s dive in!
Buying More House than You Can Afford
Of all the things to avoid when buying a house, this is number one.
I have seen it dozens of times when working with clients. Please, don’t buy too much house.
If you are unsure of how much house you can afford, my guidance is to have a mortgage payment (principal, interest, taxes, insurance, and HOA dues) that amounts to NO MORE than 25% of your gross monthly income.
Additionally, all of your debt payments need to be NO MORE than 35% of your gross monthly income.
If you want a more detailed explanation on how this works, here is an article that I wrote that dives into how much house you can afford deeper.
Not Hiring a Realtor
I know it can seem tempting because you don’t want to have to pay someone for a job that you think you can do yourself.
But a GOOD realtor will be able to help you out a ton. They should know the market in your specific area, the different neighborhoods, schools, what current offers on other properties are going for, and a whole bunch of other knowledge that you will not have.
A realtor will save you time, money and headache.
When you are buying a house, make sure that you get a realtor. A good realtor is well worth the money.
Buying the Right House in the Wrong Neighborhood
One of the other things to avoid when buying a house is buying the right house but in the wrong neighborhood.
When you are looking for a home to buy, you need to be thinking into the future as much as you can. Where will your kids go to school? How far of a commute to work is it? How far do you live from your friends and family?
Make sure that you are not just shopping for a house in a particular price range. There are other factors to consider besides just dollars and cents. Buying a house in the correct location that is not the perfect house is better than buying a perfect house but in a bad location.
Paying Too Much for the “Perfect” House
First of all, there is no such thing as a “perfect” house. Although some of us convince ourselves that there is one when we are house shopping. But for the sake of argument, let’s pretend that there is a “perfect” house.
If you find the “perfect” house, don’t lose your mind and overpay.
Yeah, the housing market has been pretty weird for the past few years, but that doesn’t mean that you should make it an excuse to spend thousands of extra dollars on your next home.
When home-shopping, you have to remember that you are trying to make a business decision first. You are willing to trade a certain amount of dollars in exchange for a home to live in.
Sometimes you may want to overpay for a particular home, but don’t go crazy.
I have seen people spend $50,000-100,000 MORE than the house was worth just because it was the “perfect” house. Don’t be one of those people. Be rational and responsible.
Your ten-year-older self will thank you for that.
Forgoing Inspections
For the love of everything, of all the things to avoid when buying a house, DO NOT FORGO INSPECTIONS.
Unless you are a general contractor or are a home inspector yourself, you need to have a professional show you what is all right and wrong with your home.
Do not forgo inspections because there is a bidding war or you just have to have that house.
I have seen people get stuck with repairs that have bankrupted them and/or put their family in a dangerous living situation because they didn’t pay $1,500 to have an inspection when buying the house.
Final Thoughts
There are several things to avoid when buying a house, and this list is not all-encompassing. But if you follow the things that I have told you, you will be in pretty good shape when you decide you want to start looking for a home.
You can do this!
I am here for you!
Until next time!
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