Home Buyer Beware: A Guide to Avoiding Costly Mistakes

It's #spookyszn, so we thought it was appropriate for us to share some tips to help you avoid a home-buying nightmare! Here’s a practical guide to six spooky things every home buyer should avoid in 2025:

Contract Curses - Understand What You're Signing 

Don’t sign anything that feels as binding as a witch’s spell. Make sure you read your Agreement of Sale thoroughly! There are clauses, timelines, deliverables, and financing terms that you should review with your realtor in full prior to signing one. Rest assured, our team ALWAYS sends out a handy-dandy Agreement of Sale video that summarizes all offer documents or hops on a video call with you to review the offer documents in full. We want our clients to feel educated and empowered. Our Buyer's Guide gives you a sneak preview of the home buying process and outlines your rights as a home buyer.

The Phantom Financing - get pre-approved

Falling for a house before securing financing is like chasing a mirage. With interest rates fluctuating in 2025, get pre-approved for a mortgage before shopping for homes so you understand your budget. Many buyers use online calculator tools to understand what their loan terms would look like. However, what buyers don't know is those tools use the absolute lowest interest rate and most favorable loan terms without looking at the buyer's entire profile (credit score, debt-to-income, down payment, loan program, etc.). The online mortgage calculator is a nice starting point but by no means a guarantee. Be sure to speak to a lender prior to your first home tour so you understand your budget, closing costs, and monthly payment and know how much flexibility you have on price. Keep in mind you can't lock your interest rate until you have an executed Agreement of Sale, but speaking to a lender in advance and obtaining a pre-approval is critical. Speak to your realtor if you need some lender recommendations. You can't make an offer on a home without one! 

The Home Inspection - Look for Skeletons in the Closet

Skipping one is like ignoring a flickering light in a creepy basement. A licensed inspector can uncover structural issues, electrical hazards, or plumbing problems that could cost you thousands. In today’s market, with steep sale prices, this step should be non-negotiable. While there are times that it may be appropriate to skip a home inspection (and consult with your Realtor and GC on that), you should always work to retain your right to perform one.

A Cauldron of Costs

The home’s price is just the start—closing costs, property taxes, and maintenance can bubble up fast. Closing costs in 2025 typically range from 2% to 5% of the home’s price, and overlooking these can strain your finances. Budget for insurance, repairs, and potential HOA assessments to keep your wallet from boiling over.

A Haunted House - clear chain of title 

A home with a troubled past—foreclosures, liens, or legal disputes—can complicate ownership. When you are under agreement with a home, your Realtor and team will engage a title company to help review, clear, and insure the property's chain of title so that you can feel safe about the history of your home. We'll work with the title company to guarantee that Uncle Ricky from 1956 doesn't rise from the dead and claim ownership to the property.

Tips to Stay Safe

• Work with a Pro: a trusted Realtor can spot issues and guide you through the process before even making an offer. We'd love to help you! 

• Trust Your Gut: if a purchase feels off, speak to your Realtor (and specialists) about options. You typically have home contingencies in place to protect you! 

We always want our clients to secure a home that’s a solid investment, not a financial fright!