First-Time Home Buying 101: 6 Tips for Buying Your First Home

Buying your first home is such an exciting time. Whether you’re looking for more stability, more freedom to express yourself, a place to grow your family, or simply a good investment, owning your own home can be a wonderful thing!

But buying a home—especially for the first time—can also feel like an overwhelming feat. There are so many details to consider, not to mention the fact that it’s a huge financial and time commitment. 

If you’re a first-time home buyer, here are a few pieces of advice from your friendly neighborhood real estate agent to help make the process a little less stressful for you. Keep these things in mind as you start to look for your first home.

Looking for info about the home buying process itself? I have a blog on that too!

1. Don’t Let Your Emotions Get the Best of You 

Buying a home is, without doubt, an emotional process. But be careful not to let your emotions get the better of you as you search for a home. 

It’s best to be ready and willing to walk away from a deal if it isn’t right for you. For example: Never let yourself feel pressured into spending outside your comfort zone to beat another buyer’s offer, and don’t move forward with a purchase if the inspection reveals big issues that you can’t afford to take on.

Try not to get too emotionally invested in a home until you’ve signed on the dotted line at closing. So many things can go wrong in a deal: the inspection shows big issues, the appraisal comes in low, your financing falls through…etc. Keeping your emotions in check will help you make clearer, more sound decisions and find the home that’s right for you.

2. No Home Will Meet 100% of Your Expectations

All too often, we have grand dreams and wishes for our future home. But it’s important to remember that, regardless of your budget, no home is going to meet 100% of what you want or need. Ultimately, if a home meets 70-80% of what you’re looking for, it’s one you should highly consider.

To help yourself decide which homes to consider, make a list of your needs, non-negotiables, and nice-to-haves. Make note of not only the amenities and number of beds/baths you’re looking for, but also which areas or school districts you want to live in.

Arming yourself with this list will make it easier to compare properties and reduce the stress of deciding which homes to put an offer on and which to walk away from.

3. Everything Is Fixable or Negotiable

When you buy a previously owned home, there are bound to be a few issues that come up. But keep in mind that everything is fixable or negotiable. 

If you include an inspection contingency in your offer, it allows you to have a home inspection done within a certain time frame. An inspection is a thorough assessment of the home’s structure and systems that’s meant to help you make an informed decision about buying a property. It can be helpful to attend the inspection so you can ask the inspector any questions you have about the home.

Once the inspection is completed, the inspector will provide you with an inspection report, detailing any major or minor issues they found in the home. These reports can feel very overwhelming and daunting, but they are intended to be very thorough so you know what you’re getting into when you buy the home.

If the inspection uncovers items that are beyond your ability to fix (or pay for), you may be able to negotiate with the seller to fix them before closing or provide concessions in the form of a reduced sale price. Your real estate agent can help you with that negotiation.

If you can’t come to an agreement on inspection items, you can walk away from the deal with your earnest money intact (assuming you included an inspection contingency in the offer, and you’re within the inspection time period).

4. Don’t Wind Up House-Poor: Stick to Your Budget

Never go over budget for a house, even if it seems perfect for you. The last thing you want is to become house-poor (i.e. after you make your mortgage payment there’s not much left to live on). You may have to give up a chef’s kitchen or other desired amenity to be able to live comfortably in a home. 

Figure out how much you can afford to spend, and stick to your budget. Figuring out what payment is actually doable for you will help you avoid financial stress in the future.

Talk with a lender to determine what you’ll qualify for as far as a mortgage goes, but keep in mind that just because you qualify for a $500,000 loan doesn’t mean you should spend that much. Use a mortgage calculator to set a price range based on your income, debt, down payment, credit score, and where you plan to live. And don’t forget to budget in enough money for repairs or renovations.

In a competitive market, consider looking at properties below your price limit to give yourself some wiggle room for bidding. In a less competitive market, you may be able to view homes a bit above your limit. Your real estate agent can help you determine a range for your offering price.

The right home is out there for you—and you won’t have to sacrifice your financial wellbeing for it.

5. Take Other People’s Advice With a Grain of Salt

Our loved ones (parents, siblings, friends, and family) only want what’s best for us…and they love to share their thoughts! 

Their thoughts and concerns come from a good place: they don’t want to see us stuck in a financial home trap. However, sometimes the information they share with us is simply an opinion. Take their advice and opinions as a labor of love and with a grain (or two) of salt. 

This is not to say to disrespect your loved ones or keep them from attending showings—I love family! But their opinions are truly sometimes just opinions, and in the end you have to make the choice that is right for you.

6. You’re Not Bugging Your Real Estate Agent!

It’s your real estate agent’s job to show you homes, so don’t ever feel like you’re bugging us when you ask to view a home. That’s what we’re here for! Trust your agent and don’t hesitate to ask them to tour homes with you.

A good real estate agent will scour the market for homes that meet your needs and price range, tour those homes with you, and then guide you through the negotiation and closing processes. They’re with you every step of the way. 

A word of advice: Always work with your own buyer’s agent—don’t assume the seller’s agent will represent your best interests. Their first priority is the seller, not you.

Are you considering buying your first home this year? If so, I’d love to be a part of your home buying journey! Give me a call at 612-227-5537 to get started.