First-Time Homebuyers: Mistakes to Steer Clear Of

by Rossi Real Estate Services LLC 04/25/2021

It’s part of the American DNA to want to own a home. It can be your immense joy or become a nightmare if you don’t avoid some of these first-time buyer lapses in judgment.

What to Avoid

Overbuying. The mantra used to be “buy the biggest house you can afford.” After all isn’t bigger always better? The challenge is that affordability is subjective. If you’ve never owned a home, you don’t know the intangible costs. A bigger house has more space to live, but it also has more space to heat and cool. A large yard is fantastic for the kids, but it comes with landscaping and maintenance responsibilities. Go big if you like, but do it with your eyes wide open. Ask your agent to help you determine ongoing costs for the homes you visit in your quest.
Buying just to buy. Yes, that down payment is burning a hole in your virtual pocket. You want it invested in property so that you can get on with the business of living. But unless you have a time-restriction on funds that need reinvesting, take your time to get what, and more importantly, where you really want. Visit neighborhoods during the day on different days, in the evening and on weekends. Drive around the nearby streets too. This will help you get more of a feel for the overall area.
Becoming emotionally attached to a home you don’t yet own. When you’re shopping for a home, it’s easy to find “THE ONE” that checks all your boxes — except the budget box, or the timeline box, or the practicality box. When home stagers’ do their job well, you’re guaranteed to have an emotional reaction to a house. Their entire goal is to trigger your emotions so that you “have to have” that house. But emotions can be fickle. What you love today in this house could be the thing you despise in 10 years of living there. It’s essential that you spend time with your buyer’s agent to determine the non-negotiables you want for your new home.
Entering a bidding war. When you have unlimited funds, perhaps you can afford to pay more for a home than the market price. But lenders limit the size of a mortgage based on a lot of factors you may not be aware of in the housing market. Just because the price of a house goes up doesn’t mean you can get a loan to cover the full difference between what you pay and what the market says it’s worth.

Most of all, don’t buy without representation. Your expert buyer’s agent knows all the ins and outs of the local market and can steer you clear of pitfalls, potholes, and potentially poor choices. They negotiate on your behalf and represent your (not the seller’s) interest in those negotiations. Rely on them to show you homes that fit your list and check your boxes without breaking the bank or putting you in an overstretched situation.

Home Buying

Homeownership

Mistakes

About the Author

Rossi Real Estate Services LLC

Rossi Real Estate Services LLC is a boutique real estate brokerage firm that provides close personal attention to buyers and sellers in the Capital Region and surrounding areas. “Typical” is not a word that clients use to describe Rossi Real Estate's approach to home buying and selling. Building upon years of experience, Rossi Real Estate employs creative marketing approaches, combined with a vast network, to quickly sell homes. By creating home floor plans, professional photography, and online marketing videos, Rossi Real Estate is able to depict home layouts and professional marketing to potential buyers before stepping foot in your home; this saves the seller valuable time by attracting only those buyers who have greater interest in the home. Additionally, by employing targeted online marketing, Rossi Real Estate targets buyers searching for homes just like yours.

Joe Rossi, the Principal Broker at Rossi Real Estate, builds upon over 12 years real estate experience in every transaction. Joe zealously advocates for his clients by combining his diverse background in law, finance, complex negotiation, and management, with compassion and exemplary communication skills creates. He explains transaction details and guides his clients through every step of the buying and selling experience. Furthermore, Joe listens to his clients’ wants and needs. In a recent transaction, the buyer profusely thanked Joe, stating he was, “[T]he only one in the transaction that was capable of communicating with the sellers in a way that ensured we were able to close on our dream home”.

Our real estate practice includes leading professionals, all of which are NYS Licensed Real Estate Sales Associates: Joseph R. Rossi, Ryan Hart, & Dustin Cogswell. Their experience includes work at a fortune 100 company, military operations, and technical recruiting.

If you're looking for a real estate broker who goes above and beyond the industry, who genuinely cares about their clients, and who will drive results, contact Rossi Real Estate Services LLC today.

The Stuff our attorneys make us include...

In accordance with Real Property Law §442-H, Rossi Real Estate Services LLC implemented a Standardized Operating Procedure governing client engagement. As such, prior to any engagement, Broker:

1. Requires a buyer to produce identification if the identity of the buyer is not readily known through a personal relationship with the broker or licensed sales person;

2. Requires an exclusive agency agreement (i.e. exclusive broker agreement) prior to engagement with any buyer;

3. Does not require pre-approval for a mortgage loan; however, a pre-qualification letter for a mortgage loan or, for cash buyers, proof of funds is required.

Although Broker may not require certain information, a seller of real estate may require this information prior to showing the property and/or as part of any purchase offer.