Should You Buy Now or Wait? A Look at Current...
October 13, 2025
Buying your first home is one of the most exciting and nerve-wracking milestones in life. It’s easy to get caught up in the excitement of open houses and online listings, but before you make an offer, it’s important to understand what you’re stepping into. A well-prepared buyer can save thousands of dollars and avoid common pitfalls.
Here are 10 essential things every first-time home buyer should know before making an offer.
Before you fall in love with a house, get a clear picture of your finances. Consider not just the down payment and monthly mortgage, but also property taxes, insurance, utilities, HOA fees, and maintenance costs. Many experts recommend that your total housing costs not exceed 28–30% of your monthly income.
A pre-approval letter shows sellers that you’re serious and helps you understand what price range you can afford. Pre-approval is more reliable than pre-qualification because lenders actually verify your financial information. It can also give you a competitive advantage in a hot housing market.
You’re not just buying a home—you’re buying into a community. Visit the neighborhood at different times of day, research school districts, crime rates, commute times, and any upcoming development plans. Even if you don’t have children, a good school district can boost your home’s resale value.
Is it a buyer’s market or a seller’s market? In a seller’s market, homes sell quickly and often above asking price. In a buyer’s market, you may have more room to negotiate. Understanding this will help you craft a smarter offer and timing strategy.
A home may look perfect, but hidden problems like foundation cracks, electrical issues, or plumbing leaks can be expensive to fix. A professional home inspection can reveal red flags and give you leverage to negotiate repairs or a lower price before closing.
Many first-time buyers overlook closing costs, which typically range from 2% to 5% of the loan amount. These can include appraisal fees, title insurance, taxes, and lender charges. Ask your lender for an estimate early so you can budget accordingly.
Once you’ve applied for a mortgage, avoid opening new credit cards, making large purchases, or changing jobs until after closing. Lenders recheck your finances before approving the loan, and sudden changes could put your approval at risk.
Consider how long you plan to stay in the home. If you might move within a few years, focus on a property with strong resale potential rather than one that fits only your short-term needs.
Negotiating isn’t just about price. You can also negotiate for repairs, appliances, move-in dates, or even seller-paid closing costs. A skilled real estate agent can help you navigate these discussions and secure the best possible deal.
It’s easy to fall in love with a home that feels “perfect,” but emotional decisions can lead to overpaying or ignoring warning signs. Stay focused on the numbers and facts. If the inspection or price doesn’t align with your budget, be ready to walk away. The right home will come along.
