Owning a home is a dream for many, but in today’s housing market, it can quickly turn into a nightmare. With high interest rates and low inventory, buyers are navigating steep challenges that often lead to costly missteps. Here are five common mistakes homebuyers are making in 2024—and expert advice on how to steer clear of them.
1. Overextending Financially
The excitement of buying a home can sometimes cause buyers to stretch their budgets further than they should. This can lead to unnecessary financial stress and a tight living situation.
“With interest rates at a 20-year high, buyers often fall into the trap of stretching their budget too thin,” said Yawar Charlie, a senior real estate agent and director at Aaron Kirman Group. “I’ve seen buyers get caught up in the excitement, only to find themselves house-rich but cash-poor. Trust me, no one wants to be eating ramen in their dream home because they overextended.”
2. Skipping the Preapproval Process
Skipping preapproval might seem like a minor oversight, but in this fast-paced market, it can have serious consequences. Sellers need to know you’re financially prepared before considering your offer.
“Showing up to a home viewing without a preapproval is like going to a fancy dinner without your wallet — it’s just not going to work out,” Charlie shared.
“In this fast-paced market, sellers need to know you’re serious. I can’t tell you how many times I’ve seen buyers miss out on their dream home because they weren’t preapproved. Get your ducks in a row before starting house hunting — this isn’t amateur hour.”
3. Underestimating the Importance of Location
The perfect house might turn into a disaster if you overlook its location. Always consider how the neighborhood aligns with your lifestyle needs.
“You might fall in love with a house, but if you ignore the neighborhood, you could be setting yourself up for disaster,” Charlie emphasized. “Imagine buying a gorgeous home only to find out the nearest coffee shop is 20 miles away, or worse, the area isn’t as safe as you’d like. And let’s talk about traffic — L.A. traffic is no joke. You don’t want to spend half your life stuck on the 405 just to get to work. Make sure the location suits your lifestyle — you’ll thank yourself later.”
4. Failing to Consider Future Resale Value
Your dream home today might not be the best investment for tomorrow. Many buyers overlook the potential resale value, which could cost them down the line.
“You don’t want to be stuck with a property that’s hard to sell when it’s time to move on,” Charlie explained. “Consider factors like the neighborhood’s growth potential and the quality of local schools. And remember, your first home doesn’t have to be your dream home — it’s about building wealth and making a smart investment for your future. A little foresight can save you a lot of headaches down the line.”
5. Overlooking Home Inspections
Skipping a home inspection is one of the biggest mistakes homebuyers make. It could leave you with unexpected repair costs that quickly add up.
“Skipping the home inspection is a rookie mistake that can lead to serious regret,” Charlie warned. “I’ve seen it all — from hidden mold to faulty wiring that could cost thousands to fix. Do yourself a favor and get a thorough inspection. It’s better to spend a little upfront than to be hit with unexpected repair costs after you’ve moved in. Your future self (and your wallet) will be grateful.”
