There are few events in life that can match the excitement of buying your first home. For many, it is the single biggest investment they’ll ever make, yet some perform less due diligence than they would for smaller, less consequential purchases. There are many reasons for this, including most recently the intense competition in Canada’s real estate market that led to the need to submit offers quickly and with little to no conditions. These quick, no-condition offers allowed many would-be homebuyers to beat out the competition, but at what cost? Buying a home without an inspection or spending way out of your budget can lead to disastrous consequences down the road.

For first-time homebuyers, it can be difficult to decipher between the essential and the nice-to-have. To ensure your first homebuying experience is a good one, the experts at Rouse Realty Advisors put together a list of the top five mistakes made by first-time homebuyers for you to avoid.

Stretching Your Budget

It can be hard to let go of your dream house, but blowing your budget can lead to regret later on. Buying a house outside your budget can mean substantial cuts to your lifestyle to make mortgage payments and if the economic environment changes, as is happening in Canada right now, some homeowners may be forced into a position where they can no longer afford their mortgage. 

Our advice is to always stick to your budget. Even if it means letting go of your dream house, the peace of mind you’ll have knowing your home won’t bankrupt you will be well worth it.

Skipping the Home Inspection

Few real estate agents would ever recommend waiving the condition of a home inspection, but at the height of Canada’s real estate frenzy, waiving this condition was necessary in order to have the winning offer. While this worked out for many buyers, some discovered far too late that there were severe deficiencies with the home they purchased—some requiring expensive fixes even after buyers had paid well over asking. 

Whether it’s your first home purchase or your thirtieth, don’t skip the inspection!

Choosing a Home Over Community

The most important consideration when buying a home has nothing to do with the home itself—it is the neighbourhood. If need be, homes can change—an addition can be put on to accommodate a growing family, a kitchen can be remodelled, a pool can be put in the back yard, etc. But if you don’t like the community you’re in, there’s not a lot you can do besides move … again. 

Before even looking at houses, identify neighbourhoods that offer everything you need and then focus your search within those areas.

Assuming Everything Goes To Plan

Many homebuyers, especially first-timers, want to get as much house for their buck as they can. As such, they’ll pile all their savings into their downpayment and ensure their mortgage is the absolute most they can afford. While this may help homebuyers to purchase their “dream house” it leaves very little in the bank should something go wrong—and something always goes wrong.

When you’re ready to buy, always factor a “safety net” into your budget—this means an easily accessible cash stockpile that can be used to cover surprise costs (and trust us—there will always be surprise costs!).

Spending On Fashion Over Function

When buying a home, especially your first, the temptation to go out and buy all new furnishings and decor can be hard to fight; however, make sure your home is functional but you make it fashionable. For instance, will any major appliances need to be replaced soon? How about the roof—fixing a roof can run tens of thousands of dollars and a properly functioning roof is definitely a must-have. 

What’s the point in having a beautifully furnished home if you can’t live in it? Always address your home’s function before its fashion.