Buying a home involves more than finding a property you like. The agent you choose, the financial decisions you make, and even how you approach your home search can make a big difference in the process.
Here are 10 common mistakes to avoid when buying a home in Iowa.
Mistake #1: Shopping at the Top of Your Budget
A mortgage pre-approval tells you how much a lender may be willing to lend, but that doesn’t necessarily mean you should spend that much.
Consider the entire cost of owning the home, including the mortgage payment, property taxes, homeowners insurance, utilities, maintenance, and any HOA dues.
Before you start seriously looking at homes, determine a price range that works comfortably with your finances, not simply the maximum amount you can borrow.
Mistake #2: Choosing an Agent Just Because They Can Open the Door
It’s easier than ever to find a home online, click a button, and get connected with an agent who can schedule a showing. But the first agent available to open the door isn’t necessarily the agent you want representing you through one of your largest financial decisions.
Take some time to choose your agent before you start touring homes. Look at their experience, local knowledge, responsiveness, reviews, and approach to negotiation and representation. Ask how they work, what they charge, and what you can expect throughout the process.
In Iowa, buyers are generally required to have a written agreement with an agent before touring a home with that agent. That makes it even more important to understand who you’re working with and what you’re agreeing to before the first showing.
A good buyer’s agent does much more than provide access to a property. They can help you evaluate homes, structure an offer, negotiate terms, navigate inspections, and work through issues on the way to closing.
Choose your agent before you choose your home. Learn about buying with PROmetro →
Mistake #3: Letting Too Many People Influence Your Decision
Buying a house is exciting, so it’s natural to talk about it with family and friends. The problem is that you’ll probably get plenty of opinions.
One person thinks the house is too expensive. Another doesn’t like the neighborhood. Someone else thinks you need a bigger yard, a newer kitchen, or a completely different style of home.
Advice can be helpful, but they’re not the ones buying the house or making the payments.
Know what matters most to you, listen to good advice, and don’t let a committee make the decision for you.
The right home doesn’t have to be the right home for everyone you know.
Mistake #4: Getting Too Attached to One House
It’s easy to picture yourself living in a home before you’ve even written an offer. But until you own it, plenty can change.
Another buyer may submit a stronger offer. An inspection could uncover an unexpected problem. The appraisal could come in low, or you and the seller may simply be unable to agree on terms.
It’s fine to be excited about a home. Just remember that there will usually be other opportunities if one doesn’t work out.
Mistake #5: Making Major Financial Changes Before Closing
Once you’re under contract, keeping your finances relatively consistent is usually a good idea.
Large purchases, new credit cards, auto loans, co-signing a loan, changing bank accounts, or making large undocumented deposits can potentially affect your mortgage approval or create additional documentation requirements.
Your lender may review your finances and credit again before closing. If you’re considering a significant financial move, talk with your lender first.
Mistake #6: Lowballing the Seller Without a Good Reason
Everyone wants a good deal, but simply offering far below the asking price doesn’t necessarily put you in a better negotiating position.
A low offer can make sense when a home is overpriced, needs significant work, has been on the market for a long time, or when comparable sales support a lower value. An extremely low offer just to “see what happens,” however, can backfire.
Price is also only one part of an offer. Closing date, financing, inspections, contingencies, and other terms can affect how attractive an offer is to a seller.
Work with your agent to understand the property, comparable sales, and current market before deciding what to offer. The goal isn’t simply to offer the least. It’s to negotiate the best overall deal you reasonably can.
Mistake #7: Focusing Only on the Purchase Price
The purchase price matters, but it isn’t the only number that determines whether a home is affordable.
Property taxes, homeowners insurance, HOA dues, utilities, maintenance, and future repairs can make two similarly priced homes cost very different amounts to own.
Before making an offer, look beyond the price and consider what the home is likely to cost you each month and over time.
Mistake #8: Making a Major Employment Change Without Talking to Your Lender
Changing jobs doesn’t automatically prevent you from getting a mortgage, but employment and income are important parts of the approval process.
Changing employers, becoming self-employed, switching to commission-based income, reducing your hours, or leaving a job can affect how a lender evaluates your income.
If you’re considering a significant employment change while buying a home, talk with your lender before making the move.
Mistake #9: Making an Offer Without Understanding the Terms
An offer is more than a price. Financing, inspections, closing date, possession, earnest money, included items, contingencies, and other terms can all matter.
Don’t focus so much on “winning” the house that you agree to terms you don’t understand or aren’t comfortable with.
Your agent should explain the purchase agreement and help you understand the risks and tradeoffs before you sign it.
Mistake #10: Spending Too Much Time Searching Online Instead of Touring Homes
Online searches are a great place to start, but there’s no substitute for seeing homes in person. You may think you want a two-story until you tour a ranch or discover that an area feels different than you expected.
Don’t wait for the “perfect” listing to schedule a showing. Touring homes helps you narrow down what you like, what you don’t, and what really matters to you. It also helps your agent better understand what you’re looking for.
The Bottom Line
Buying a home doesn’t have to be overwhelming. Choose your agent carefully, take the time to see homes in person, understand what you’re signing, and keep your finances relatively stable while your loan is being approved.
If you’re thinking about buying a home in Central Iowa, PROmetro Realty can help you search for homes, evaluate properties, write and negotiate an offer, and navigate the process from your first showing through closing. Learn about buying with PROmetro →