Mistake #1: Not get financing in order before trying to make an offer on a home
Unless you can afford to pay all cash for a home, it’s important to get a pre-approval before you start looking for homes. Don’t fall in love with a home just to be told that a lender won’t give you enough money to buy it.This would be a good time to tell you that there is FREE money available home buyers that qualify. For example, Missouri has a grant program that gives up to 4% closing costs to first-time home buyers who qualify.
Mistake #2: Not Considering Your Commute to Work
This could have been included with #6 but I felt it was important enough to highlight on its own. An average commute in St. Louis is roughly 20-30 minutes. But if you have a typical 9-5 job and have to take highway 270 north in the morning….be sure to add several minutes to your commute thanks to the standard congestion of rush hour. (PS – my home search tool shows the average commute time to work for each home listed, as well as other interesting metrics like Walk Score)
Mistake #3: Not getting an inspection (or the right ones)
You’re about to make one of the most expensive purchases of your life. You should spend the money to make sure it’s a safe home. Inspections aren’t cheap BUT you could save yourself tens of thousands of dollars by having one if you find a serious issue with a home you’re trying to purchase. The types of inspections you should get depend on the type of home you are pursuing (i.e does it have a septic system? If not, you don’t need a septic inspection). Ask your Realtor which inspections they recommend for your situation.
Oh, and did you know that in Missouri home inspectors aren’t required to have a license (but real estate agents do??). Real head scratcher there, I know. Fortunately, there is a certification that some inspectors have that signifies a high level of competence called the American Society of Home Inspectors certification (or ASHI). You can find an ASHI certified inspector here or you can call/text me for a referral.
Mistake #4: Not having accurate expectations about the amount of work a house might need
Don’t go into a home that will make you overwhelmed. You might never finish the project you envisioned and regret purchasing the home in the first place. Conversely, don’t rule out homes because you don’t like paint colors.
Sometimes, you can get a “steal” of a deal on a home that doesn’t need much more than paint, which can be a DIY project if you’re tenacious enough but is easily and inexpensively hired out.
But be sure to ask your Realtor what their thoughts are on larger projects. Even little projects can add up and become overwhelming.
Mistake #5: Not asking questions
If you don’t understand something, ask! Don’t let your Realtor make all the decision for you (they shouldn’t be doing that anyway). Make your Realtor explain something to you as many times as you need to ensure you are comfortable with your transaction.
Mistake #6: Not thinking about what you want your lifestyle to look like
St. Louis is a wonderfully diverse place full of many cultural activities and events. Too often home buyers get caught up in finding a perfect house and forget to consider the neighborhood they are moving into. For instance, do you love being able to walk to restaurants, bars and grocery stores? Or do you prefer a rural setting where you privacy?
When my wife and I purchased our first home, we bought a house on a busy highway with no sidewalk. We didn’t think about being able to walk out the front door and go for a walk or a run. She had to hop in the car before she could safely go for a run.
These are things you need to decide before you start looking or at least narrow down as you are searching for your home.
Mistake #7: Not using a Realtor, or even worse PAYING for a Buyer’s Agent
This one is a two-parter:
Not Using a Realtor: Buying a home is something you’ll likely only do once or twice in a decade and contract laws, building codes, and title laws change frequently. So, you’ll never be able to keep up with it all. This is why it’s helpful to have someone on your side who works in real estate every day. And best of all, it shouldn’t cost you anything.
Paying for a Buyer’s Agent: A Seller pays a commission to a buyer’s realtor. You should pay nothing! These days, however, larger firms are making their agents charge Buyers fees that range from $350-500. You simply should not have to pay an agent to help you with your purchase.
Many of these agents claim their services are “free” then will later tell you their Brokerage charges a fee so that the Broker can “keep their lights on.” A lot of agents do this but it’s not right. If you’re working with an agent who is charging this fee, tell them you’d prefer not to pay it.
Thinking of moving soon? Download my free home buying guide!