Top House-Hunting Mistakes — NIC, THE REALTOR

Don't underestimate your feelings or

overestimate your finances

As a prospective homebuyer, it is natural to feel emotionally invested in the home-buying process. However, it is crucial to exercise caution and avoid common mistakes that can be a result of strong emotions. Due to the widespread implications of homeownership, it is vital to keep your sentiments in check and make informed decisions based on rational thinking.

As you embark on your quest for the perfect home that fits both your budget and preferences, it's important to be cognizant of the common pitfalls that may thwart an otherwise successful pursuit. Regrettably, many individuals unknowingly perpetrate certain house-hunting errors that impede them from attaining their desired abode. So, let's delve into some of the most prevalent house-hunting missteps and explore ways to circumvent them, ensuring a smooth and satisfactory home-finding experience.

1. Not Knowing What You Can Afford

When you really love a place, it's tough to let go. You imagine all the amazing things you could have if you lived there - the gorgeous streets lined with trees, the fancy bathtubs, the sprawling kitchen with top-of-the-line appliances. But, if it's out of your price range, you'll end up feeling disappointed and frustrated. Trust me, you don't want that. So, the best thing to do is to stay within your budget when you're hunting for a home. If you start looking at places that you can't afford, you'll just end up wanting something that's impossible for you to have. That can lead to major problems like stretching your finances too thin or never being happy with what you can actually afford. To avoid all that mess, start your search at the lower end of your budget. If you find a place that meets your needs, stick with it. Remember, the more money you spend on a house, the more you'll pay in interest over time. That can seriously add up! It might be a smarter move to use that cash for something else instead of blowing it all on a fancy place.

2. Skipping Mortgage Pre-Approval

Basically, when you're trying to buy a house, the bank might approve you for more or less money than you think you can afford. It's important to get pre-approved for a loan before you start looking so you don't waste your time or the seller's time. Plus, it helps you know what kind of houses you should be looking at. Even if you're pre-approved, make sure to keep your credit score in good shape because any negative changes could make you ineligible for the loan.

3. Not Shopping Around

Looking for your dream home can be tough, but remember to be realistic and willing to make some compromises. Just make sure you don't compromise on things that are really important to you, like the number of bedrooms you need for future kiddos or your desire for privacy. Don't settle for a condo just because it's cheaper if you hate sharing walls with noisy neighbors! While you may have to give a little, you don't want to end up stressed and unhappy with your choice. Keep an open mind and explore all your options - if you have your heart set on a certain neighborhood, there might be similar homes available at a good price. And don't forget to use real estate websites and apps to help you find potential homes from your couch!

4. Not Using an Agent

When you reach a point where you are genuinely looking to purchase a home, it is important to avoid attending open houses without the guidance of a real estate agent or broker. These professionals are obligated to abide by ethical standards that require them to work in the best interests of both parties, the buyer and the seller. However, engaging in conversations with a seller's agent before reaching out to an agent of your own may result in a less advantageous bargaining position.

5. Lacking Vision

House-hunting can sometimes feel like being Goldilocks in the three bears' house: This is too big, this is too small. It's important to distinguish between fixable and non-fixable aspects of a property. If you find a home that meets your needs in terms of important factors like location and size, it may be worth living with some unsightly elements, like outdated wallpaper in the bathroom, until you can afford to make changes. On the other hand, don't be swayed by superficial improvements made by sellers to increase the home's value. Minor upgrades and cosmetic fixes are often inexpensive tricks that may not be worth the higher price. Doing upgrades yourself, even with the help of a contractor, is often cheaper and allows you to personalize the home to your own tastes.

6. Overlooking Important Flaws

If you're working on a tight budget, consider searching for homes that have untapped potential. These are properties that you can upgrade or improve, which can increase their value and help you make headway in the real estate world. However, if you're eyeing a fixer-upper, make sure that renovations are doable in terms of finances, time, and skills. Don't buy a house that needs more repairs than you can handle. You might think you can do it alone, but then get overwhelmed by the work once you start. The cost to repair it will also balloon once you face difficulties finishing it off. Also, take note of the additional costs that come with renovation work, like damages or wasted resources. Settle a project that you can handle financially and skill-wise before investing in it.

7. Ignoring the Neighborhood

As you're on the hunt for your new pad, don't forget to zoom out and check out the surrounding neighborhood too! You can't predict everything that might come up in your new area, but it's definitely worth exploring to avoid any unpleasant surprises down the line. Take the time to do a little digging or even chat with locals to get a feel for what the community is like. Remember, there's more to your new digs than just the walls around you!

Some questions you should ask include:

  • What kind of development plans are in the works for the neighborhood?

  • Is the street likely to become a major street or a popular rush-hour shortcut?

  • Is there talk of a bridge or a highway to be built very nearby within five years?

  • What are the zoning laws in the area?

  • Is there a lot of undeveloped land around? What is likely to get built there?

  • Have home values in the neighborhood been declining or rising?

If you're happy with the answers to these questions, then your potential house's location can keep its rose-colored luster.

8. Rushing to Put in an Offer

Hey, homebuyers! When you find a house that's perfect for you in a competitive market, you might want to jump on it as soon as possible. But hold on a second! It's important to balance your excitement with making sure the home is a great fit for you. Don't skip essential steps such as checking out the neighborhood safety at different times of the day and potential noise issues, like a nearby railway line. Take your time and sleep on it for at least a night. How you slept and feel the next morning about the home will give you important information on if it's a good choice. Plus, taking your time lets you research the actual value of the property and make a fair offer.

9. Dragging Your Feet

Buying a property requires finding the right balance between taking your time and making quick decisions. But waiting too long could mean losing out on your dream home to someone who beats you to the punch. This can be especially frustrating for self-employed individuals who need to prioritize their time for work. Delaying the home-buying process can negatively affect their business and their ability to make mortgage payments in the future. So, it's important to act fast and make informed decisions to avoid missing out on potential homes that can prolong your search, disrupt your routine, and waste your time.

Fast Fact


Nearly two-thirds of families in the U.S. own their primary residence, according to the United States Census Bureau.2

10. Offering Too Much

If you're planning on buying a home in a competitive market, I know it can be tempting to throw out high prices to avoid a bidding war. But here's the thing: that strategy could come back to bite you. If the home's appraisal falls below the price you offered, you'll have to cough up extra cash or hope the seller will lower the price. Plus, if you sell when the market is tough, you could end up owing more on your mortgage than the home is worth. To avoid all of that, take a deep breath and make sure you're offering a reasonable price for the area. Check out similar sales and talk to your agent before throwing out any numbers. Trust me, you'll be glad you did when you're not hit with any surprise financial issues.

11. Neglecting to Inspect

When you find the perfect place and your offer is accepted, it might seem tempting to think that you're a homeowner right away. But hold on! Before closing the sale, it's crucial to know the condition of the house. You don't want any unexpected repairs or money pits. To avoid a financial mistake, have a thorough inspection of the property, which your mortgage lender might also require. Keep your emotions in check until you have a complete picture of the house's physical condition and the soundness of your potential investment.

12. Getting Desperate

When you've been house hunting for a while, it's easy to get desperate to find something you like. But, settling for a home that you don't love could be a big mistake. If you end up hating the residence and want to sell, it could cost you a lot in agent commissions and closing costs. Plus, you'll have to deal with the hassle and expense of moving again.

So, it's best to be patient and wait for a home that truly suits you. As long as your expectations are reasonable for your budget, there's bound to be something out there. Keep in mind that new homes are listed every day in some areas.



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