10 Common Homebuyer Mistakes To Avoid: A Local Guide To Smarter Decisions

In this blog, we’ll break down the most common pitfalls homebuyers make and how you can steer clear of them. Let's dive in.

1. Not Getting Pre-Approved Before Starting Your Search

Picture this: You fall head over heels for the perfect home it’s got the backyard of your dreams and that charming open-concept kitchen. It’s everything you’ve been dreaming of, but you haven’t been pre-approved for a mortgage yet. Another buyer, who is pre-approved, swoops in with an offer, and you lose out. It’s a tough pill to swallow!

Getting pre-approved not only shows sellers you’re serious but also gives you a clear understanding of your budget. Before you start touring homes, connect with a lender and secure your pre-approval it’s your golden ticket to house hunting.

2. Choosing Online Lenders Over Local Experts

Online lenders may offer convenience, but local lenders have something they don’t: a deep understanding of the local market. A local lender is more likely to know the nuances of Northeastern Pennsylvania’s housing market and provide personalized service.

Plus, a local lender can help you navigate challenges specific to our area, like unique zoning laws or property taxes. Don’t underestimate the value of having a real person you can call or meet with in person when questions arise.

3. Skipping the Expertise of a Real Estate Agent

Buying a home can feel like something you might tackle on your own, especially with so much information available at your fingertips. But the truth is, the process is often more complex than it seems. From navigating contracts and negotiations to avoiding unexpected pitfalls, it’s easy to get overwhelmed or make costly mistakes. Think of it like learning to ride a bike for the first time, you might feel brave enough to try on your own, but having someone experienced by your side to guide and steady you makes all the difference. Schedule interviews, ask questions, and look for someone who understands your goals, listens to your needs, and feels like the right agent in this exciting journey.

As of August 17, 2024, you’ll need a Buyer-Broker Agreement in place before touring homes. Don’t let that sound intimidating, it’s really just a simple way to outline the services your agent provides and set clear expectations so everyone’s on the same page.  To make things even easier, here’s a helpful consumer guide that explains everything you need to know!

4. Not Saving Enough (or Draining Your Savings Completely)

It’s easy to get laser-focused on the down payment especially for first-time buyers. But even seasoned buyers know there’s a lot more to the financial picture! Here are a few other costs to keep in mind:

• Closing Costs: These typically run between 2-5% of the home’s purchase price.
• Home Inspections: Expect to spend $300-$650, depending on the property, 
• Moving Expenses: Whether you’re hiring movers, renting a truck, or buying packing supplies, it all adds up.
• Repairs and Maintenance: Even brand-new homes can surprise you with a fix or two right away. And remember that FHA and VA loans might require specific repairs for loan approval.

One of the smartest moves you can make is keeping an emergency fund intact. Life has a way of throwing us curveballs, and dipping too deeply into your savings can leave you financially vulnerable when unexpected expenses pop up.

5. Overlooking First-Time Homebuyer Programs

First-time buyers often miss out on programs that can save them thousands and they are available in most states. In Pennsylvania, programs like the Keystone Home Loan Program or HOMEstead Downpayment Assistance provide grants, reduced interest rates, or help with down payments.

Check out Pennsylvania Housing Finance Agency (PHFA), they provide grants to help with down payments and closing costs when obtaining an HFA Preferred™ (Lo MI) loan. If your credit score is below 680, attending an in-person education session is required, ensuring you’re fully prepared for the responsibilities of homeownership.  

6. Rushing to Make an Offer Without Researching the Neighborhood

The house might be perfect, but what about the neighborhood? Before making an offer, spend time exploring the area. Check out schools, commute times, local amenities, crime rates and future development plans. Visit at different times of day to get a feel for the vibe.

Remember, you’re not just buying a house you’re buying into a community. A dream house in the wrong neighborhood can quickly turn into a nightmare. Make sure the location fits your lifestyle and long-term goals.

7. Waiting Too Long to Make a Decision

On the flip side, waiting too long to make an offer can cost you, especially in competitive markets, homes don’t sit on the market forever. If a property feels right, fits your budget, checks your boxes and aligns with your goals, don’t overthink it or hesitate. The longer you wait, the more likely it is someone else will swoop in.

Trust your research and lean on your agent to guide you through the offer process quickly and confidently.

8. Letting Emotions Take Over

It’s easy to fall in love with a home’s aesthetics or imagine yourself hosting the perfect holiday dinner in that dining room. But emotion can cloud judgment. Stay grounded by focusing on the facts:

Is the home in good condition?

Is it priced fairly?

Does it fit your long-term needs?

Make sure your head and heart are aligned before making a decision.

9. Waiving the Home Inspection

In a competitive market, waiving a home inspection might seem like a way to strengthen your offer but it’s a risky move. Inspections can reveal critical issues, like faulty wiring or structural problems, that could cost you thousands to fix later.

The average inspection costs $300-$650, a small price to pay for peace of mind. Skipping this step could mean walking into a financial disaster.

10. Forgetting About the Future: Your “Why”

It’s not just about finding a home for today, it’s about finding one that fits your long-term plans. Are you planning to expand your family? Is the commute to work reasonable? Will this home grow with you, or will it feel too small in a few years?

Remembering your “why” is what truly matters to you and it's key to making confident, informed decisions throughout the home-buying process. So, the home you choose is one you’ll cherish for years to come.

Final Thoughts

Buying a home doesn’t have to be overwhelming. By avoiding these common mistakes, you’ll be in a better position to find the right home, stay within your budget, and enjoy a smooth buying experience.

If you’re buying in Luzerne or Lackawanna County, don’t hesitate to reach out with questions or for guidance. With the right preparation and support, your future home is just around the corner!

Comment below if you found this helpful or share mistakes you made while purchasing your home.  Share this post to others.