In November 2014, my spouse and I were thrilled to buy our first home, fulfilling a dream we had long held. We’re social people and couldn’t wait to host friends and family in our new place. We also enjoyed working on home improvement projects, embracing what homeownership is all about. But, just 18 months later, we’re already thinking about selling, either this coming summer or the next year. So, what happened?
Well, as new homeowners, we made some common mistakes, but we quickly learned from them to avoid making the same errors again in the future.
First off, we didn’t plan long-term. We saw our small house as a starting point, thinking we could expand it over time. Reality check: the costs of updating an older home made those plans unrealistic. Now, we’re likely moving out sooner than we thought. The big takeaway is, when buying a home, think about how it will fit into your life down the road.
Second, aim to save for a 20% down payment. We jumped into the market with just a 10% down payment because we wanted to buy while it was still affordable. This rushed decision got us a good deal in an expensive area, but we ended up with high monthly mortgage payments. On the bright side, we’ve built up some equity and savings and hope to meet the 20% down payment next time.
Third, take your time to find a great realtor you can trust. Looking back, we might have gotten a better deal if we had been more assertive and chosen a more experienced realtor.
Fourth, pay attention to all the details. Don’t just fall for the overall charm of a house; look at everything and figure out the costs for any repairs needed.
Lastly, keep your emotions in check when buying a home. It’s a big financial transaction, even though it feels very personal.
So, what have you learned from buying your first home? What would you do differently next time?