First Home Buyer Mistakes to Avoid – Learn How to Secure the Perfect Property
Are you a first home buyer eager to make informed decisions and avoid common pitfalls? Congratulations—you’re already ahead by taking the time to research, which is mistake number one! Buying your first home is an exciting milestone, but without proper preparation, it can become stressful. Let’s explore key mistakes to avoid so you can navigate the journey with confidence.
1. Skipping Research – Knowledge is Power
Failing to research the property market can lead to costly errors. Many buyers rush into decisions without understanding price trends, location advantages, or government incentives like first-home owner grants. Stay informed by exploring Domain, REA and others, attending open homes, and comparing similar properties.
2. Not Getting Your Finances in Order
One of the biggest mistakes is searching for a property before securing your finances. Going to an auction without pre-approval is risky—you need to speak to a mortgage broker or bank early. Even if you don’t require a loan, mortgage pre-approval gives you flexibility. At Ralph & Ralph, we connect buyers with trusted brokers and lenders to streamline the process. Going to one of the big four banks (CBA, Westpac, NAB or ANZ) is a safe option. We can put you in touch with banks and mortgage brokers which might be a better way for you to get your home loan as we might be able to unlock further incentives.
Additionally, set a realistic budget and consider future interest rate fluctuations. A property may seem affordable now, but if rates rise, will you still be able to service the loan? Discuss financial scenarios with a financial advisor to ensure stability.
3. Ignoring Additional Costs Beyond Purchase Price
Many first home buyers only budget for the deposit and mortgage repayments—but what about the extra costs? Stamp duty, council rates, settlement adjustments, and unexpected repairs can pile up. Will you need to replace appliances, upgrade wiring, or fix plumbing? A detailed cost breakdown guide can help you factor in hidden expenses.
4. Believing the Price Guide is the Final Sale Price
A guide price is just that—a guide. Some agents quote the lower end of the range, but real sales often occur at the upper end. Remember, the guide will be a range. Normally this is up to 10% above what they quote you as the bottom of the guide. Sometimes they will tell you a range that is different from 10% but if they only give you a single number, they mean that number and up to 10% above it. They will always be aiming towards the top of that guide too (and sometimes it even goes over that).
5. Not Defining Your Criteria Before House Hunting
Impulse buying can lead to regret, especially if you haven’t clearly outlined your must-have features. Sit down with anyone you’re purchasing with and set clear criteria. Consider factors like location, amenities, space requirements, and transport links. Once you have set this criteria, check REA or Domain sold properties in the last 6-12 months to see if what you are looking for exists and how common it is.
6. Skipping Open Homes & Inspections
Photos can be misleading—only by visiting open homes will you spot hidden flaws or assess whether a space truly meets your needs. Make sure when you go to open homes you have a purpose. You are initially looking to rule out properties that don’t meet your needs. Those that you don’t rule out on your criteria allow you to look closer and do all the analysis you need to before buying.
7. Having Too Narrow or Too Wide a Search Focus
Some buyers limit themselves to a single suburb, while others cast the net too wide, creating different issues. Think about what you are looking for in your home and then do your research on what areas will meet those needs. At Ralph & Ralph, we are experts in the North Shore and are happy to talk to you about what suburbs may suit your needs.
8. Thinking About the Present, Not the Future
What suits your lifestyle now may not work in five years. What about ten or fifteen years? How long do you plan to live in this home and how might your life change in this time? If you are planning a family, will the nearby schools work for your future children or is there space to grow that family? There are many other aspects of your life that will impact how liveable and appropriate this home will be for you.
9. Delaying Because You’re Waiting for Market Changes
Many buyers hesitate, believing prices will drop. Predicting the market is as easy as predicting the numbers on a roulette wheel. Government decisions, world events, stock market fluctuations and even current affairs will influence the market. The right time to buy is the time you are ready so buy when you need it in your life and you find the right property. A warning on this though, don’t rush into a buy because you need it now if the property isn’t right. You can always rent something right for now and come back to the search when you have more time or less pressure.
10. Not Getting Expert Help
Navigating real estate alone can be daunting. Doing this right requires a team that you can trust. This includes, but is not limited to, the right mortgage broker, the right conveyancer or solicitor, the right building and pest inspector, and shamelessly the right buyers’ agent (Ralph & Ralph).