Pitfalls to Avoid for First-Time Homeowners

Author

Buyer's agent and co-founder

Table of Contents

Add a header to begin generating the table of contents

Did you know that it is quite common for first-time homebuyers to regret their purchase within the first year? Don’t let that be you!

Buying your first home is a long and complicated journey, but it’s also fraught with potential missteps that could cost you a lot. As Simon Deering and Heath Bassett, Perth buyer’s agents and co-founders of You&Me Personalised Property Services, we’ve seen firsthand the challenges that first-time homeowners face in today’s hot real estate market.

With properties being snapped up faster than ever, the pressure to make quick decisions can lead to costly mistakes, mainly if you don’t know what you don’t know.

We want to share some insights to help you understand and be prepared for the challenging process of first-time home buying, helping you avoid the pitfalls that many before you have fallen into.

We will address the most common traps, from dealing with pushy real estate agents to understanding the true value of a property. Let’s explore the pitfalls first-time homeowners should avoid and set you on the path to making a confident, informed decision.

Simon Deering and Heath Bassett Address First Home Buyers Traps

Why First-Time Homeowner Pitfalls Deserve Your Attention

The decision to buy your first home is likely the biggest financial commitment you’ll make in your life. It’s not just about finding a place to live but also about investing in your future, creating stability, and building wealth.

But it is important that you understand that the stakes are high, and the consequences of making mistakes can be severe and long-lasting.

Addressing these pitfalls now is crucial because the real estate market waits for no one. In competitive markets like Perth, where properties are selling at record speeds, hesitation or lack of knowledge can mean missing out on great opportunities or, worse, jumping into a bad deal out of fear of missing out (FOMO).

The cost of not being prepared can be staggering. Financial setbacks, emotional stress, and lost opportunities are just the tip of the iceberg. You might end up overpaying for a property (our Perth buyers agent services will help you with this!), buying in the wrong location, or overlooking critical issues that could turn your dream home into a money pit.

As we share these tips, remember that they’re designed to progress from general advice to more advanced strategies. Let’s start by unmasking the hidden traps waiting for unsuspecting first-time buyers.

Common Pitfalls to Avoid

Don’t Trust Everything Real Estate Agents Tell You

Real estate agents work for the seller, not you. Their primary goal is to sell the property for the highest possible price. Always verify information independently, research comparable sales in the area, and consider hiring a buyer’s agent to represent your interests.

The following is a common scenario: a first-time buyer in Perth was told by an agent that they needed to offer at the top of their budget due to “multiple offers.” After hiring a buyer’s agent, they discovered the property was overpriced and secured it for 15% less than the initial asking price.

Beware of Emotional Decision-Making

Excitement and FOMO can cloud your judgment, leading to hasty decisions. Before you start looking, set clear criteria for your ideal home, stick to your budget no matter how much you love a property, and take time to sleep on major decisions.

It is also common for buyers to fall in love with a home’s aesthetic and rush to put in an offer, only to realise later that the location added an hour to their daily commute, significantly impacting their quality of life.

Some First Home Buyers Regret Their Purchase

Don’t Rely Solely on Parents’ Advice

While well-intentioned, your parents’ real estate knowledge may be outdated. Thank your parents for their input, but seek current market information. Consult with professionals who are active in today’s market and use online resources to educate yourself about current trends and prices.

Following her parents’ advice to “always buy the biggest house you can afford,” a first-time buyer maxed out her budget on a large home, only to struggle with maintenance costs and utility bills she hadn’t anticipated.

Advanced Considerations for Savvy First-Time Buyers

Understand the True Value of a Property

The listing price isn’t always indicative of a property’s true value. Learn to calculate the price per square meter for both the house and land. Consider factors like:

Property age.
Recent renovations.
Compare similar properties in the area that have recently sold.

A buyer once noticed that two seemingly identical 3-bedroom homes on the same street had a $100,000 price difference. Upon investigation, they discovered one was on a 400m² lot while the other was on 750m², justifying the price disparity.

Look Beyond the Surface

Don’t be swayed by cosmetic appeal alone. Focus on the bones of the house. Hire a professional building inspector, pay attention to the quality of construction and materials used, and consider future renovation or expansion potential.

A first-time buyer was impressed by a beautifully staged home but later discovered significant structural issues that the fresh paint and new fixtures had hidden, costing them thousands in repairs.

Expert Insights for First-Time Homeowner Success

Understand the Impact of Location Nuances

Micro-location factors can significantly affect property value and livability. Visit the property at different times of day and week, research future development plans for the area, and consider proximity to amenities, transport, and potential noise sources.

We had a client who chose a home on a quiet street, only to discover it became a busy thoroughfare during rush hour, affecting their property’s value and their quality of life.

Plan for the Future, Not Just the Present

Your first home should align with your long-term goals and lifestyle changes. Consider your 5-10 year plan (career changes, family planning, etc.), look at the potential for property value growth in the area, and assess the adaptability of the home to your changing needs.

A young couple might want to acquire a trendy apartment in the city centre, perfect for their current lifestyle. However, they might feel cramped and have to sell at a loss when they decide to start a family, as the space couldn’t accommodate their new needs.

Wrapping Up

Navigating the world of first-time home buying doesn’t have to be a minefield. By being aware of these pitfalls and armed with the right knowledge, you can approach your first home purchase with confidence and clarity.

Remember, it’s not just about finding a house but it’s about making a smart investment in your future.

Take the time to educate yourself, seek professional advice when needed, and always trust your instincts. Don’t let the pressure of a hot market or well-meaning but outdated advice push you into a decision you might regret.

Get in touch with our team of buyers agents

Get in Touch with Our Leading Perth Buyers Agent Team

Ready to take the next step in your home-buying journey?

As Simon Deering and Heath Bassett, we at You&Me Personalised Property Services are here to help. Visit our website for more insights, or reach out to our team of experienced buyer’s agents who specialise in helping first-time homeowners make informed decisions. We’re committed to providing you with the cold, hard truth and honest advice to ensure you make the best decision possible.

Remember, in the world of real estate, knowledge truly is power. Until next time, happy investing!

Contact us.

Video Transcript

See transcript

G’day, everyone. I'm Simon Deering and this is Heath Bassett, we are the 2 co-founders at You&Me Personalised Property Services, the buyer's agents made for you.
We are in final season for the footy and Heath, none of our teams are playing, so we've got time to do some videos. Yeah, I still watch footy, but, yeah. Unfortunately, we won't say who we go for, but you probably got a good idea where we're standing, who Simon goes for.
Yes, and both of the teams are out. But I'm not a purple man. I'm a blue and gold man. Now Heath, today I wanted to address the first home owner topic. And I guess the pitfalls that are associated with being a first home owner. Looking for that property for the first time and just having no experience and not knowing who to trust, what to look for and what to look out for.
Yeah, obviously it's scary. I mean, super scary. I mean, obviously when I bought my first time, it was early 1800s. I can't really remember that experience. But you're still young enough to remember buying your first place. Yeah. So I mean, there's a plethora of pitfalls. Why don't you go through a few of them? Yeah. I mean, I guess in this day and age, I say this day and age.
Perth is a crazy hot market. Best in the country. You know, the most games, the quickest time on market. I guess the biggest concern is what the selling agents are telling you. And that doesn't apply just to first home owners, but that applies to absolutely everyone. You you've got 40 people coming through a home open., the market's crazy.
Sometimes they don't put a price on it. You go to the selling agent, you go, well, where do I need to put a price? Where do I need to buy this property? And they lick their lips, because your first home buyer is like, if anyone can be taken advantage of, it's this person here, because they’ve got absolutely no idea.
Yeah. And the thing is that you tell them that, hey, I've never bought my first home. Are so excited. I'm so nervous. Now, Mr. Agent, who doesn't represent me, what do I do? Oh, well, look, we've got a lot of offers coming in. What? I can advise you. What's your pre-approval budget? Oh, you know, this is my ceiling. Oh, fantastic!
Well, look, I gotta tell you, I don't know if that ceiling is going to work, but if I were you, I'd definitely be coming in right at the very top. Yeah. And it sounds funny. And it's all of these comical to us because we see it and hear it every day, but but that's the rule.
When you're a first home buyer, you're not open to that experience and you're naive, you're a little bit gullible, and you're still believing that they are there to help, that there to help the seller. And in the process, they can't help the buyer. But rest assured, their job is to make the buyer pay the most amount of money out there.
Now, the other person a first time buyer, can turn to most of the time, not all the time would be their parents, mum and dad, you know? But the problem with mum and dad is, is mom and dad probably haven't built a property for the last ten, 15 years, probably 20, you know. So what Mum and dad are going to tell you is everything's either expensive or everything's too expensive.
Oh, I wouldn't buy in that area because when I was growing up, it was like this. Yep, and then other pitfalls, knowing well where value sister property right away. Right. So you've got the floor area, the land size, when the property was built, and what fittings and fixtures are in that property compared to other properties you may or may not have looked at. It's important to note that that's creating a difference in price.
So the other thing price per square meter of land in different areas can be can be $2,000, a square meter can be $600 a square meter depending on where you are. Yeah. The, the class of build, the class of builder is a double story. Is that single story. There's so much to take into consideration.
Obviously, the easiest way to do it, if there's any about, is comparable data. But you've still got to know the data where things are selling, what things are selling for. And, you know, the comparison between, end of the cul de sac property and one in the same street that happens to be on the roundabout of two main roads.
Huge differences. What about, like, say you're a first time behind the selling agent goes, oh, here's a list of comparables. And, you know, he's got ten three by ones. They write, you think, oh, this ten, three by one. That's also for this. It must be the right price. But that's where it really comes into that location.
When you're talking about price per square meter, the size of the home. So you can have a three-by-one that's 81m². And then you have a three-by-one that's 110 square managed. You can have three by one. That's 400m². You can have a three-by-one that's on 750m². And as a first home buyer, you're not understanding where the value is.
Maybe you've missed out on a couple and now, you know, you just from home and you got FOMO and you fear of missing out. So look, there are so many pitfalls, guys. But if your first home owner out there and you're struggling or you just don't know where to start, who to listen to, give us a call. Guys, our job is specifically to give you representation.
We're not here to sell you anything. You go to our website, you have a look at what we've been able to do. You go to our Google reviews, you have a look at all our writing fans, and you'll see that Heath and I very black and white with straight down the line. You see people that only want to look after themselves.
They're going to tell you what you want to hear. People that genuinely want to look after you again and tell you what you need to hear. And that's how we've made our business about telling people what they need to hear, getting them the cold truth, giving them great reports and giving them honesty so that when they make a decision, they make it with confidence.
Absolutely. So guys, there you have it. You know, not just the first time owners, it was obviously targeted towards first time owners, but it is for everyone. If you don't want to know more information, you know where to find us. As always, our website. You can find us on Google, You&Me Personalised Property Services and until next time, happy investing!

Watch on YouTube

Heath Bassett

About the author

Property Buyer's Agent and Co-Founder at You&Me Personalised Property Services

Buy property in Perth and Brisbane with confidence.

Read Full Bio

Pitfalls to Avoid for First-Time Homeowners