First Time Home Buyer MISTAKES | 9 Mistakes First-Time Home Buyers Make | First Time Home Buyer Tips


Buying a home is an exciting time of your
life. And buying your first home is a great accomplishment. But there are some things to be aware of so
you don’t get buyer’s remorse. How’s it going everyone, welcome to the
video, my name is Matt Leighton and if this is your first time here, be sure to subscribe
so you always stay up to date on the latest real estate video. Today’s video is all about first time home
buyers. First time home buyers often get pulled in
so many different directions on guidance from parents, friends, neighbors, and others on
how to best to go about their home search. And because of all the noise out there, I
thought it would be beneficial to you to come up with a list of 9 first time home buyer
mistakes that I’ve seen so that you can avoid making these mistakes. Let’s begin — The first and biggest mistake that first-time
home buyers are making is that looking before you’re financially qualified. This one is so important. And I don’t know if all first time home
buyers are getting together and saying, “OK, we’re not going to get pre-qualified until
we’re ready to write an offer”, because it certainly feels that way sometimes. There are a lot of mortgage calculators and
sleek looking websites out there that you can punch in your income and what you want
your monthly mortgage to be and it will spit out your budget, but that is the wrong way
to go about getting pre-qualified. You need to talk with a lender before you
start looking at houses. Why? Why is this so important? Because you don’t know what you can afford
until you’ve been told what you can afford. You don’t get to determine your budget. That’s the lender’s responsibility. You are setting yourself up to fail if you
don’t talk with a lender. You may think you an afford a $600,000 house
in Arlington when in reality you can only afford a $300,000 home in Woodbridge. Listen I know you’re excited to see houses
and I know you have your checklist, but that is meaningless without financial qualification. So go out there and talk with a local lender. — The second mistake is looking for a unicorn
— Speaking of your checklist, hopefully you wrote it using a pencil and not a pen
because you might need to make adjustments on what you’re looking for. Yeah, that home with a 2 car garage, fenced-in
backyard, finished basement, with the open kitchen that’s walkable to your favorite
shops and restaurants does not exist. It only exists in your mind. And if it does exist in real life, it’s
twice your budget. Think about what’s most important to you
and know that you’re not going to get everything. The goal is to find a home that meets 75%
of your criteria, and then it’s up to you to make up that last 25%. You are not living on HGTV. There’s a lot more value in buying something
outdated and slowly making it yours than only considering homes with granite counters and
stainless steel appliances. — Mistake number three is Using the listing
agent to represent you. Let’s say you walk in to an open house,
you decide you love the house and you want to write an offer so you talk with the listing
agent who’s at the open house and that agent agrees to help you. Who better to help you write the offer and
facilitate the transaction, than the listing agent who knows the home and can directly
talk with the seller, right? Wrong. The listing agent’s best interests are in
helping the seller get the most money in their pocket. Oh maybe you thought the agent would cut their
commission if they represented both sides? Maybe, maybe they cut it 1%. But if the property is overpriced by 5%, are
you really saving money? And what happens when the deal goes sideways. Do you think the listing agent is going to
have your back? This is probably the largest financially transaction
that you’ve made in your life up until this point. Do you want someone that represents the other
side’s best interest, or your best interest? You want someone in your corner to guide you
and lead you with your best interests in mind. You want a buyer’s agent. Do your research and find a good buyer’s
agent who’s an excellent negotiator. If you’re in the D.C. Metro area, you already know who to call. And in your local area, just as you research
homes, and mortgage companies, research and find a great buyer’s agent. — Mistake number four is Looking too much
into online home values. I’ve held hundreds of open houses. I’ve interacted with thousands of people
in the D.C. Metro area and not one time has someone said,
Hey I’m here from Zillow and I’m going to walk the property to calculate the Zestimate. It’s because it doesn’t happen. Zillow never goes into properties. How can they have an accurate pricing tool
if they don’t step foot inside of a home? Zillow even admits that their Zestimates are
inaccurate. Just to give you an idea, Zillow’s own CEO
sold his home for 40% less than the estimated value. It’s almost comical when someone presents
an offer and cites the Zestimate as the logic behind the offer. A better way to determine a home’s value
is to study the market and look at what comparable properties have sold for. That’s it. You don’t need a fancy algorithm. — Mistake number five is Expecting the value
of the home to increase. Guys, it’s not all rainbows and unicorns. The reality is that your home value might
not increase after you purchase it. It may even decrease. You should purchase your home because it’s
a smart financial move for you, it helps your family, and it increases your quality of life. And if the market, which by the way, you can’t
control happens to go up during the time you own the property, good for you. However if your whole goal is to try to time
the market and get in and get out at the exact right times, you’re not going to win. The truth hurts. And if you’re disagreeing with this point,
maybe you need to take a deeper look. Look I’m not saying it’s OK to buy an
overpriced home. I’m not saying it’s OK to buy in a neighborhood
that doesn’t see appreciation. It’s more the mindset that you’re going
to buy this home, live in it for 7 years, have your first kid, then sell it for 10%
more when you’re ready for your second kid. It’s not going to be 75 degrees and sunny
all the time. Sure there are certain things you can do to
increase the likelihood that your home will increase in value. But at the end of the day, this is your home,
your well-being, your livelihood. Make sure that your quality of life is what
you are looking for first, because that’s what’s most important, and if your home
increases in value, even better. — Mistake number six is Underestimating
your expenses — Things like utilities and extra unexpected repairs eat up a lot more
than you initially think they would. The general rule of thumb is to estimate about
1% of the purchase price of the home for yearly maintenance, repairs, and major yard work. There’s a saying that goes, Once you buy
your house, things start breaking. You should be saving and budgeting, anticipating
that things are going to break. There are hidden costs of owning a home and
while you don’t need to know all the hidden costs, you should budget for extra costs and
expect the unexpected. — Mistake number 7 is Feeling rushed. This one is a tricky one and let me tell you
what I mean. Do not let anyone make you feel like you have
to decide and make an offer before you’re ready. If you’re rushed and you’re unsure of
things, it’s inevitable that the end outcome will not be a good one. You may lose a house because you’ve taken
the time to think it over and by the time you’re ready, the house is off the market. It’s easy to fall in love with a house,
but there are other houses. Now with that being said, if you are in a
market where homes move fast and the market is strong, you may need to re-consider your
strategy. It’s ok to take your time at first. However, there is a difference between feeling
rushed and dragging your feet. If you consistently see that properties go
under contract after the first weekend or in a short period of time, it’s a sign that
you need to strike quickly. So take your time, learn about the market,
get an idea of how fast things are moving, so that when you are ready to move forward,
you do it quickly and aggressively. — Mistake number 8 is falling in love with
the house. We kind of touched on this earlier. Only in rare circumstances will this be your
forever house where it will immediately meet all your needs now and forever. Or if you’re like the rest of us, the house
will be suitable for a few years then you’ll move to the next house. Now obviously everyone’s life is different. This may be the house that you live in for
the next 20 years. And that’s fine. I’m a big proponent of thinking and acting
logically and rationally. If you fall in love with the home before your
write the offer, you’re going to overpay for the house. Or someone will outbid you and you’ll compare
every future house to the house you lost, and that’s not good. It’s ok to love the house after you move
in. Don’t get attached to houses if they are
on the open market. They will disappear, they will go under contract,
someone else will buy them. But guess what, another house will come on
the market. And this one might even be better than the
last one. You only have so much energy. Don’t waste it by falling in love with a
fairy tale. The time to celebrate and the time to fall
in love is after settlement and after you’ve moved into your new home. — I am going to end my list of first-time
homebuyer mistakes by touching on something that might catch a few of you off guard. Mistake number 9 thinking renting is throwing
away money. And the mistake that some first-time home
buyers are making is that they are buying a home. Now I’m a salesperson. My job is to sell homes. But guess what, there are a lot of you out
there that would be much better off not buying right now. It’s very simple. Renting versus owning depends entirely on
your own personal circumstances. If you move around a lot? You should probably rent. If you have kids and want them in the same
school, buying is probably a better route to take. Figure out your ‘Why’. Why are you going to buy? Decide if it’s right for you. There are 2 additional items on this point. First being is that if you look at long-term,
many people end up with a much larger nest egg via real estate investment. And two is that many people who are at retirement
age have the equity in their home that makes up the largest portion of their wealth. The lesson here is that purchasing long-term
is probably the best financial decision to make, with the caveat that purchasing right
now, this instance because your brother told you to, or because you want to make your parents
proud may not be the best plan. And there’s nothing wrong with renting right
now if it fits and is congruent with your current situation. Alright ladies and gentlemen there you have
the 9 mistakes that first time home buyers are making. I hope that you’ve learned something. If you found this video helpful go ahead and
hit that thumbs up button and let me know that you liked this video. Thanks for watching. Until next time, create a productive day. Take care.

100 thoughts on “First Time Home Buyer MISTAKES | 9 Mistakes First-Time Home Buyers Make | First Time Home Buyer Tips

  1. ▶▶▶ Get my new book: 46 Condo Buying Mistakes NOW –> https://www.amazon.com/Matt-Leighton/e/B00RTVS6PY/

  2. Precualified? Stupid seller what about if I have the whole money, idiot, you don’t want waste your time right?

  3. Is buying a condo for my first home a good choice if single family homes are out of my budget because im tierd of renting?

  4. Thank you Matt for being straight up and honest about the whole deal. We should have people like you and with the same mentality as you who know the job well and will not lead people in a wrong direction in the real estate market. Good job and best of luck to you.

  5. First time owner(still looking) and this is a great video! Also want to add that be sure to check HOA Policies BEFORE making an offer or escrow. We dodged a HUGE bullet of a condo with an awful HOA that fines for the most ridiculous things. Not all real estate agents disclose this before or if you don’t ask.

  6. Felt like you were having a face to face conversation with me. Read my mind, great advises I thank you a lot for the info 👌👍

  7. I love himmmm!! Its our first house and we’ve been through all of that, i look all the time at zillow’s estimate, but maybe it’s better to look at the recent solds and interior exterior!! After 5 offers we gor the house, not perfect but almost! Like he says, not updated but much better than other things we’ve seen.

  8. Omg everything he’s said is so true… we started very scared and took our time, but now we are agressive and on our way to buy and close contract!

  9. So many great solid points, that some of them even made me laugh. I also love the yelling, Matt. It shows confidence and knowledge. My husband and I would love a realtor like you!

  10. My husband and I Purchased a house
    I didn’t like the house but I did some renovations, Now the house looks nice, but we are selling why?
    Buying a House it can be Your Blessing or worse nightmare, in our case it became our nightmare, why because We did rushed buying it, I was relocated from my job an hour away from the house, paying extra money gas and Tolls, You have the Mortgage/Insurance House expenses, HOA etc… plus utilities People It is a Big deal, Thankfully we were able to make our payments on time because as Nurses my hubby and I we could, but Buying a House is easy Maintaining the house and Utilities that’s the challenged
    so we are going to sell, We decided to start From scratch again but Better!!

    We want to be able to pay off some of our credit cards one of my car Is paid off by the end of this year, we are paying off most of the smaller debts so we can give a big down payment and a better low interest deal Mortgage, next time, I suggested to all the people out there Be very cautious don’t rush if you are not able to have enough money for your down payment or closing expenses don’t do it take it slow, safe a little more $$$
    .
    Everything happens for a reason We learned our lesson and this next time we are not going to rush, we are going to do things right and properly.

  11. I am a realtor and this is wrong. If a listing agent is also representing the buyer then they must respect the best interests of both parties. In my state this is called dual agency and you must obtain confidentiality to every single one of your clients, once the buyer is in contract with that agent that agent had a duty to serve the best interests of them as well. When it comes down to negotiating the agent is not allowed to give advice to either the seller or the buyer on what the agent thinks they should do. Example: if the buyer says “well do you think if I offered $5000 less they might consider my offer?” The agent can’t say something like “yes I think they would because they told me they would take up to $10,000 less”. The agent had to say soemthing like “I don’t know what the sellers would take and I think you will have to decide if that will work”

  12. Thing is, the Zestimate is a lot more accurate on cheaper properties. It's pretty close to the comps that have sold in our neighborhood recently (110k – 180k).

  13. How do I get financing for a foreclosed home that's up for auction. I currently Occupy this home and I know exactly what repairs it needs. The auction states home as is. No financing available because the home is occupied. I would also be a first time buyer. Is this possible to achieve?

  14. Looking to purchase a home in Raleigh, NC where the average annual appreciation is 4%. Should I still be skeptical about gaining equity? Also, I'm 35 years old. I'm just now at a place where I can afford to purchase a home, and I've been renting all my life. I also feel like I've thrown money away by renting. Please expand.

  15. Thank you for walking down the steps with me. This will be the first of many videos I will be watching in terms of home buying. We only have a limited time before we have to move. I wish we can take our time, but we can't. This summer is going to be very stressful for me and I'm going to have to exercise all the energy I can to help us find something whether it is buying or renting…These tips helped though. Thank you.

  16. Should I purchase a condo home for $200k straight out of college? I'll be graduating with a bachelors and masters degree in hospitality management.

  17. It sucks when the lender says what we can afford but we get disability money and it’s like another income, they don’t count that, we also get money for going to school that’s another major income and well, doesn’t count, basically we make 10,000 a month and can’t afford a 500,000 dollar town house.. why?

  18. Holy shit 300k. I just closed on a 100k home with a oversized garage with carport and shed. 1 acre of wood land for hunting. Brand new oil and coal furnace. Just need new paint and carpet. 800 a month. Get a good and honest realtor.

  19. I'm not a first time buyer.we are purchasing our second home. Not just second home but upgrading homes and keeping our starter as an investment. One of my tips is keeping other debt to an extreme minimum. Hey on Dave Ramsey and clear your debt to income.

  20. one question if you have a higher percent of down payment does it give you an advantage when buying and biding in a house?

  21. Hello. I just started my home buying process. I ended up going with remax and go prime mortgage loans. I've been told that once you start your home buying process you have up to 120 days from the first time they run your credit to go ahead and try different mortgage loan lenders without further affecting your credit score. Would this be correct? Sure hope it is so that I am not limited to remax and go prime mortgages in case I am not satisfied with their services.

  22. Why do your subtitles never match what you say? The subtitles either miss a ton of what you're saying or adding in stuff that you didn't say. I always use subtitles and I have not ever seen this on any other channel.

  23. This maybe in America but they're are other countries in the world where first time home buyers are really up against it. In Australia and in Sydney most home buyers are well heeled investors. How on earth is a young couple suppose to be able to even afford a deposit on a ordinary run of the mill $3,000,000 three bedroom house on a small plot of land. Most young first time home buyers have given up ever buying or owning their first home. They just rent for the rest of their lives or move to a country area well away from a capital city and start a new affordable life.

  24. I'm technically not a first-time home buyer since I just recently purchased my second home, but I think it's worth reiterating that virtually everyone in the process….the real estate agent, the mortgage company, the inspection companies, etc, work with the best interests of the SELLER in mind, NOT you, the buyer. There is NO incentive for anyone in the transaction to help buyers…they won't help you figure out if the home is over-priced (negatively affects commission), they won't help you try to find ways to reduce closing costs (mortgage companies make money off fees), etc. It is an entirely RIGGED game in the favor of the SELLER and you, the buyer, are going to have to stand up and SCREAM if you see something wrong that needs to be fixed, such as when I discovered over $1500 worth of closing fees that shouldn't have been charged to me since I was buying a home with a VA loan. Dealing with real estate agents and mortgage companies is like dealing with used car salesman, only 10x worse.

  25. Buying a home is quite the process! Its good to understand some of the common mistakes especially going thru this process right now!

  26. Nice watching your video from Ireland.
    Thanks for the info and nice vid.
    When it comes to the private rental market in Ireland, the average rent is 1500 EUR for a 1 bedroom crappy apartment in Dublin, full of stupid rules: NO KIDS, NO PETS, etc.
    The housing market here is reaaaally on shortage.
    I've been paying 1200 EUR on 1 bedroom apartment (30m2 – YES! THIRTY squared meters) for 5 years and I'm really tired of living in an old and pricey dump.

  27. Interesting enough we are closing on our First Home soon. Didn't make either one of the mistakes listed, which makes me smile. Great video. Thank you.

  28. Years ago when I was married my wife and I bought our first house that was built just for us in a brand new neighborhood. It was the 2nd house on that street complete with a privacy fence and it was a nightmare from day one.

    They gave us low grade carpet but charged us for high carpet thinking we wouldn't see the difference.
    The ducts in the AC were too narrow so it was always breaking down. Warranty pays for parts but not labor.
    They built houses in back of us on a hill so we had no privacy and drainage ended up in our back yard.
    Property tax was outrages.

    Will probably never buy a house again.

  29. Great video. I’m looking to purchase my first home and I’m super nervous. But this video has helped me regain focus. Thanks!!

  30. My standards are way lower than what your describing lol
    I want a small house out in the woods at least 20 min from my small town

  31. So you have a few points that make sense, but at the same time you're wrong on a lot of things.
    Renting is throwing your money away, you have debt? Get a second job, work over time, but stop paying rent, after 8 years of renting i have $0 back from the apt complex, if i had a house at least I'll get a couple hundreds back.

  32. This seems backwards, someone thinking they can afford more and a lender setting the bar significantly lower… In most cases a lender will give you a loan that takes about half of your income if you're doing everything else right. (Net income minus a maxed out HSA, Roth IRA, and whatever your employer matches, plus health insurance costs.)

  33. this seemed like it helped alot man. I'm a single dad my 3 yr old and i are going to live in our apartment 1 more yr and then move out. I know i want more room, but deciding whether or not to buy or stay renting. I llike the area that we are living in. I noticed that this past year i saved alot of money even with paying rent. Either way if i decide to buy it will be a house that i know I'll be able to afford and ill do my best to get my monthly payment as low as possble.

  34. I was in ssrious financial issue with my creedit card, I weas able to work with luxuryhacks at hotmail dot com and they are able to do the job job with ease

  35. Great video it was very helpful! I made a video explaining how you can finance your closing costs into your mortgage. Here is the link if you want to check it out https://youtu.be/RhP-3sjw3A0

  36. Shocked by some of her comments, sounds like there's no love exists in mankind but how much money does he or she has
    🙏🙏🙏
    God bless you all hoping you finally get the real meaning of being loved

  37. How far in advance should I talk to a lender before moving?? I am planning on moving by june of 2020 but don't know when or where to start.

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