Thinking about purchasing a new home? It's crucial to steer clear of common pitfalls and understand key aspects before making such a significant investment.
Buying a house resembles buying a used car more than renting an apartment. You'll need to ask questions, inspect every detail, and thoroughly test everything. Check all the faucets, flush the toilets, and crank up the heat to see how things operate.
Gabby Orcutt from Rockton, Pennsylvania, learned this lesson firsthand when she purchased her home years ago. She and her husband visited the property just once before making an offer. During the final walkthrough two months later, they barely explored the house; they only had time to stock the fridge and ignite the wood-burning stove.
What they discovered after closing left them with thousands in unexpected repairs, along with some valuable advice: don't hesitate to get up close to the carpet.
1. Engage All Your Senses
When touring their soon-to-be home, Orcutt and her husband encountered a strong wood-burning scent, reminiscent of a campfire. They dismissed it, assuming it was from the wood stove. However, they later noticed an unpleasant odor mixing with the wood scent, which Orcutt realized was emanating from the carpet.
"It had a strange urine smell that I couldn't identify," she recalled. "I wasn't sure if it was from a human, mouse, or dog."
Given that the previous owner had a dog and a notable mouse issue, any of these possibilities could be true.
“I always advise people to not shy away from getting close to the carpet,” she said. “Bring a flashlight to check under beds, move furniture, and knock on the basement walls to see if they sound hollow. Look up on closet shelves—you never know what you might find. The dishwasher could harbor ants, and the dryer might have ink stains and melted candy wrappers.”
Regarding that wood-burning odor? They discovered the firebox was cracked, and the flue was faulty, leading to carbon monoxide filling the house. “We had to invest in a whole new heating system,” Orcutt noted.
2. Rely on Professionals
Orcutt's transaction was direct from the seller, meaning no real estate agents were involved. While this saved on commission, it also led to two critical oversights: she skipped a home inspection and didn’t conduct a thorough walkthrough prior to closing.
Although she doesn't regret bypassing a realtor, she wishes she hadn't put so much faith in the seller and had opted for a more competent lawyer. Their lawyer, also representing the seller, didn’t advise them to have the seller sign a disclosure form, which could have provided them with more legal options when they faced issues with the heating system, broken appliances, and rodent infestations.
“Don’t feel intimidated or shy during this process,” Orcutt advised. “You’re investing a lot of money. Ensure you make informed decisions and do your research.”
3. Avoid Falling in Love
When searching for a new home, leave your emotions at the door. It's easy to fall head over heels, especially for homes that seem like an upgrade from your current situation.
I remember experiencing the feeling of “this is my future!” when I first entered my current home. It had everything we desired: a backyard, a garage, and abundant natural light. Yet, when it came time to discuss finances, I was so enamored with the idea of living there that I overlooked the reality—like the fact that the down payment might surpass what we would gain from selling our current house. It all felt trivial because I was in love, right?
Wrong. Don't let your heart lead you. Make decisions based on logic and stick to your monthly budget. Avoid looking at properties that stretch your financial limits to prevent disappointment.
4. Resist Pressure
During our house hunt, our real estate agent excitedly informed us that the perfect home was hitting the market that evening at 5 p.m. We had to drop everything and hurry to see it. The house was indeed a dream, but it was slightly above our budget.
Yet, we were assured that the resale potential would be fantastic, and the additional mortgage payment was minimal. However, three other parties had already viewed the property.
“I’m sure they’ll have an offer by morning,” our agent said. “If you're interested, make an offer tonight.”
What? We had only just begun our search! Although she praised the neighborhood, we were unfamiliar with it. And while the house was lovely, how could we risk everything based on a brief visit?
I remember the stress during dinner that night with my husband. We had a tense conversation fueled by anxiety. The pressure to act felt overwhelming. Ultimately, we realized we weren't ready, and accepting that was tough but necessary. Don’t let anyone pressure you into making a potentially disastrous choice.
5. Understand Your Budget
While searching for our first home, I completed a prequalification application with an online lender. I received immediate news that we qualified for a $250,000 mortgage.
Really? I was shocked. Based on our calculations, considering the mortgage, taxes, and insurance alongside our other bills, we could afford around $175,000. But the bank's offer seemed to suggest otherwise, leading me to doubt my figures.
I excitedly called my husband, but thankfully, he was the voice of reason. It doesn’t matter how much a bank is willing to lend; what matters is your comfort level with monthly payments, which may be much lower.
“The bank, real estate agents, and loan officers shouldn't dictate your affordability—you should communicate your limits to them,” advises Michele Serro, founder of Doorsteps.com.
6. Find a Home That Suits Your Lifestyle
In our first house, my husband and I envisioned beautiful flower beds and trimmed bushes. What we failed to consider was the upkeep required to maintain that beauty. Soon, the front and backyard felt like just another chore—one we frequently neglected.
Don’t just dream about the house you want; think about what type of home aligns with your lifestyle. “Start by envisioning homeownership,” says Serro. “What kind of life do you wish to lead? How long do you plan to stay?”
7. Choose a House You Can Afford Now and in the Future
Affording our first home was heavily based on both of us working. After our daughter was born, we had to reassess our financial situation, and things didn’t align as I had hoped. After six months off, I realized that my dream of being a stay-at-home mom was leading us towards financial strain.
Consider your future expenses. Will you need to pay for private school? A nanny? Even if you currently have no car payments, will that change soon? Ensure your mortgage allows for flexibility to handle new costs and save for what lies ahead.
8. Be Selective When Choosing an Agent
When seeking a real estate agent, Serro suggests starting with personal referrals. If that's not an option, request references from potential agents. According to the National Association of Realtors, two-thirds of home buyers only interview one agent before hiring—this is a mistake.
“You should be interviewing these candidates and asking the right questions,” Serro states. “Just as I advise against falling for a house, avoid getting attached to an agent simply because they seem pleasant.”
She recommends interviewing multiple agents before making a choice. Inquire about how many clients they're currently representing (you don’t want to be just another number) and their preferred communication styles. If you dislike phone conversations, ensure your agent is adept at email and messaging. Lastly, ask yourself: do I trust this person?
“On the buyer's side, emotions matter, as there will be challenging moments. You’ll want someone you can trust to provide the support you need,” she adds.
9. Avoid Rigid Timelines
You might begin your home search in May, convinced you’ll be settled by school time in September. However, this may not happen. The average home search takes about 12 weeks, according to the National Association of Realtors. After your offer is accepted, expect a waiting period of 90 to 120 days before you finalize the sale.
So don’t plan too far ahead. If you’re renting, try to go month-to-month if possible. It’s better to take your time and find the perfect home than to rush into a subpar option due to external pressures.
