“Study Your Potential Neighbors”: Homeowners Share 40 Things They Wish They Had Known Before Buying Their First Houses

To gain more insight on what it's like to be a first-time homeowner, we reached out to Jaime Seale at Clever Real Estate, and lucky for us, she was kind enough to have a chat with Bored Panda. When it comes to the biggest mistakes first time home-owners make, Jaime says one of the most common is buying more house than they can afford. "This is especially common if they’re fixated on finding their 'dream home.' About 1 in 4 homeowners (28%) regret spending too much, making it one of the most common regrets," she noted.

"First-time buyers are usually desperate to become homeowners, and as a result, they’re willing to take more financial risks to own a home," Jaime continued. "For example, 42% of first-time buyers offered more than the asking price, compared to just 33% of repeat buyers. But nearly two-thirds of first-time buyers (63%) admit they overpaid for their home."

Jaime went on to note that nearly half of first-time home buyers (45%) exceeded their budget. "That puts them in a precarious financial position. About 65% of first-time buyers have struggled to pay their mortgage on time, and 61% have had to take on additional debt to maintain their lifestyle since purchasing their home," the expert explained. "Overextending their budget puts first-time homeowners at increased risk of foreclosure and makes it tough to meet other financial goals, such as saving for retirement."

But spending too much isn't the only common mistake home buyers make. Jaime says another is buying too quickly, with 30% of home buyers admitting that they rushed their decision. "Although sometimes it’s necessary to move fast, the real estate market is slowing, giving buyers more time to think through their decisions," she explained. "Homeownership is a big commitment of time and money, and buyers need to be sure they’re purchasing a home that meets their needs and fits their budget."

When it comes to the most important factors first-time buyers should consider before purchasing, Jaime says they need to think about the additional costs of homeownership beyond the mortgage payment. "Annual maintenance, repairs and improvements can cost thousands of dollars each year. If buyers bought more house than they could afford, they may not have much money saved for emergency repairs, causing them to go into debt."

"Maintenance and repair costs are no joke, and one-third of homeowners (33%) say they regret buying a home that requires too much maintenance — making it the most common regret," Jaime continued. "Although older homes and fixer-uppers might seem like a bargain for first-time buyers who are strapped for cash, they need to consider if the costs to repair and maintain them are worth the lower listing price."

"Buyers should also know that the market is cooling and shifting slightly back in favor of buyers, but it’s still a tough environment, and 46% of first-time buyers said purchasing a home in 2023 was more difficult than expected," Jaime continued. "Home prices remain high because of the housing shortage and there’s more competition for lower-priced homes that often attract first-time buyers."

We also asked the real estate expert if she believes buying a home is for everyone. "It’s hard to give a definitive answer because it really depends on a person’s goals and financial situation. On the one hand, real estate is generally a safer investment than stocks, and homeownership is one of the best ways to build generational wealth," Jaime says. "Although homeownership requires a large upfront cost, rent prices are rising so fast that a monthly mortgage payment can be cheaper than a monthly rent payment — depending on a person’s location, interest rate, and home price."

"But it’s not always better to buy than rent," Jaime added. "Renting might be better for those who need more flexibility in their lives, for example, young people who are still building their career and are willing to move often for jobs. Many Americans may also prefer the convenience of renting. If there’s a maintenance problem, they can simply call their landlord, who will schedule and pay for the cost of repairs."

"Even if homeownership is the right move, buying a home that’s not affordable isn’t the right move for anyone," Jaime says "If buyers can’t purchase a home right now, that doesn’t mean they won’t be able to in the future. Waiting will give them more time to save, pay off debt or repair their credit."

If you're considering buying a home of your own and you'd like to learn more real estate advice from the experts, be sure to visit Clever Real Estate's website right here!