Thinking of buying a home in 2025? Well, that’s great, but the landscape has changed a bit, especially over the last two years. In 2021 for example, interest rates were low but buyers struggled because of higher asking prices and low inventory. Today, those issues are improved but higher interest rates make even a median family home far more expensive than most buyers can afford.
Despite these challenges, people are still buying homes. So, how do you make yourself a strong candidate for a new home? It begins with making sure you have a strong downpayment, healthy income and little to no debt. That can be challenging but these are the first things the bank will check, along with your credit. If you have a strong credit score and meet these other factors, you can save money and get the house you want.
Avoid These Home Buying Mistakes
Before you run out and start looking at houses, there are still some things you need to be aware of. Buyers are making a lot of mistakes these days because they are thinking with the mindset that it’s still two years ago. You have to be different and avoid mistakes like:
- Offer asking price: If a house is just on the market or has been there for months doesn’t matter. What matters is what they are asking. Offer less, not a ridiculous amount less, but less than what they are asking. You do not know what type of competition you have and you could be bidding against yourself.
- Take the house as is: If the seller is firm on their price then maybe it’s the house that can be discussed, especially the condition. Maybe you meet their asking price but they fix the garage door or replace that old dishwasher rather than you having to do it.
- Looking without a realtor: Never enter an open house, private showing or anything else without your realtor, especially if you are planning on talking to the owners or other realtor. If you are going just to have a look for yourself that’s fine, but actual discussion of the property and the finances needs to include a realtor.
- Working with the sellers realtor: The other realtor wants the house sold and to get their clients the best deal possible. They are not interested in helping you in any way other than what gets the deal done. Your realtor will watch out for your best interests.
- Buying with a traditional mortgage: Yes, traditional mortgages are what we are all comfortable with. However, higher interest rates make it more expensive to buy with a traditional mortgage. Talk to your realtor about assumable mortgages or even rent-to-own.
The best way to avoid real estate buying mistakes is to incorporate your realtor early and often. Allow their input before you even start wondering if a house is a right fit for you. This may stretch the process out a little, but it protects you.
