After years of historically low housing supply, housing inventory is finally on the rise.

That's according to the housing inventory and supply data from the National Association of Realtors. While an increase in housing inventory is welcome news, higher interest rates and economic uncertainty create a real challenge for home buyers.

Common mistakes to avoid when buying a home

1. Changing important requirements of the home search

It's typical for buyers to modify their home search criteria. As buyers evaluate neighborhoods and house styles, the criteria reshapes and becomes more focused. Remember, clear communication is needed in this process. Avoid unnecessary confusion by staying in constant communication with your exclusive buyer agent. When you find a property of interest on a home site, send it to your agent so they can modify your Multiple Listing Service automatic search. This makes for a more successful experience for everyone.

2. Making major decisions without telling your buyers agent

Lack of timely and clear communication can create confusion and delays in the home buying process. If a relative is contributing funds to your purchase, tell your agent and your lender. If you decide to go with a different lender early in the process, tell your agent! Again, communication is key to success.

3. Making a major purchase during the home search

When you are buying a home, you will be pre-approved by a lender. Once a contract is ratified and buyers and sellers have agreed to move forward, your loan application will be submitted to underwriting. At this point, your financial situation is examined and the lender will ask for more documentation. Do not buy a car, or furniture or make any major purchases at this time. In addition, do not close out or open up new lines of credit. All of these things can effect your credit and possibly put you at risk for securing a home loan.

4. Waiving a home inspection

‍Some buyers make the mistake of forgoing a professional home inspection to save time or money. A home inspection is crucial for identifying potential issues or defects in the property that may not be apparent to the untrained eye. Skipping this step can result in unexpected repair costs or discovering significant problems after purchasing the home. Most home buyers in 2023 are competing for properties. In this case, we suggest the pre-contract home inspection. This is done before submitting an offer for consideration. Once the buyer is satisfied with the inspection, they can make an offer that is not contingent on the home inspection.

How to avoid common mistakes when buying a home

1. Stay within your budget  

One of the most common mistakes is stretching the budget beyond what is affordable. It's essential to determine a realistic budget based on your income, expenses, and future financial goals. Failing to do so can lead to financial strain, difficulty making mortgage payments, or being house-poor, where a significant portion of your income goes toward housing costs, leaving little for other expenses.

2. Do your neighborhood research

Buying a home involves more than just the physical structure; it also involves the surrounding neighborhood. Failing to research the area can lead to unpleasant surprises such as high crime rates, inadequate amenities, or incompatible community dynamics. Take the time to visit the neighborhood, research local schools, commute times, and other factors that are important to you. Go during the day and again in the evening. Does it feel like a fit? If so, move ahead with the home search.

3. Consider what you will need in the future

It's important to think ahead and consider your future needs when buying a home. For example, if you plan to start a family or need extra space for a home office, ensure the property can accommodate these needs. Failing to plan for the future can result in outgrowing the home quickly or needing to make costly renovations or moves.

4. Don’t rush the decision-making process

Buying a home is a significant financial commitment, and it's crucial not to rush the decision-making process. Take the time to thoroughly research properties, compare different options, and consider your long-term goals. Rushing into a purchase can lead to buyer's remorse or settling for a home that doesn't meet your needs.

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How can we help?

The exclusive buyer agents at HomeBuyer Brokerage specialize in serving home buyers. Please reach out with questions at info@homebuyerbrokerage.com.