The 5 most common home buying mistakes

3 February 2021

The 5 most common home buying mistakes

There's no doubt about it: The moment your real estate agent or conveyancer tells you your home purchase has just gone through is one of the best feelings in the world. But for some, that great feeling goes down with a touch of bitterness, while for some others who let the right property slip through their fingers, they'll forever regret the mistakes they made along the way.

Luckily, there are plenty of property experts out there who haven't just seen the most common mistakes once or twice - they've seen them almost literally a million times. What are they? Read on:

1. Pre-approval

Or, we should say a 'lack' of pre-approval! Too many people presume they qualify for a loan without getting a more definite yes, only to get that sinking feeling once they've selected the perfect home.

2. Loan options

It's very common that buyers think their options for getting a home loan are so limited that they'll leap at any product they qualify for. In many cases, though, they could have got a much, much better deal - so never forget that the home loan you get is going to be something you're stuck with for a very long time.

3. Financial overload

Similarly, buyers often ask their bank how much they can borrow, and then use that to guide their property choice. But just because a bank will allow you to borrow that much, doesn't mean you have to - or that you can actually afford to pay for all of those extra buying costs - insurance, moving, council rates and so on - without sacrificing your current lifestyle or getting into trouble.

4. No inspection

This is a trap first home buyers often fall into, mainly because real estate sales at the lower end of the market tend to be either old or hiding serious issues. Trust us: get a pre-purchase inspection done every time!

5. Too emotional

Yes, we know buying a first home is emotional - but you need to separate that from your cool, calm decision-making. Too many first home buyers fall in love with their home after a single open inspection, while an experienced investor or renovator will be guided by pure rationality. Please, please, please be the latter - and then get emotional later on!

Indeed, tip number 5 really is the catch-all for most of the most common buying mistakes: keep cool, calm, unemotional and wise. There will be plenty of time to crack open the champagne, and it will taste even better if you've avoided a major blunder! Good luck.