Classic pitfalls to avoid when buying your first home

Buying a home is one of the most significant and exciting investments you can make in your life. But, with so many factors to consider, such as budget, location and hidden costs, it can also be a daunting and overwhelming experience, particularly for first-time buyers.

To help you navigate this process with confidence, we've compiled a list of the most common pitfalls to be aware of when buying your first home. By learning more about these insights, you’ll be better equipped to make an informed decision and to uncover how Ownify is helping first-time homebuyers overcome these obstacles through fractional ownership.

Before you unlock the home of your dreams, here’s what you need to watch out for in the homebuying process.

8 common obstacles first-time homebuyers face

1. Overspending: We’re all familiar with the saying “house poor,” a term used to describe when someone spends most of their money on their home, leaving little wiggle room in their budget for other expenses. This is certainly not an ideal situation. In fact, 72% of homebuyers have some regrets about buying their homes, with 30% feeling that they overspent on their purchase. It's important to understand and commit to a realistic budget when buying your first home. Determine how much you can afford before you start looking, and don't let emotions guide you to overspend or get caught up in a bidding war. With Ownify, first-time homebuyers can get prequalified for a home budget and receive a monthly payment schedule. Our team has collectively bought more than 5,000 homes, and we’ll help you buy your home at the best possible price. 
2. Ignoring hidden costs: When buying a home, there are many costs that go beyond just the purchase price. It's important to be aware of these expenses so that you can budget accordingly and avoid any unexpected financial strain down the road. Don’t forget to factor in property taxes, closing costs, maintenance expenses, due diligence fees and more. With all of these common hidden costs, it can be difficult to secure the upfront cash required to buy a home. That’s why we reimagined the path to homeownership. With Ownify, first-time homebuyers pay 2% down, and we cover the rest of those expenses.
3. Not having financing in place: Before you start shopping for a home, it's essential to have financing in place, including a down payment and mortgage pre-approval. This will help you understand how much you can afford, and allow you to move forward with an offer as soon as you find your dream home. Homebuyers who partner with Ownify – Ownis, as we call them – don’t have to worry about getting pre-approved for a mortgage and only need to save for a much smaller down payment of 2%. Also, friends and family can help with that down payment, which is usually only allowed as a “gift,” rather than a loan, when using a mortgage. In addition, when we calculate the budget for your home, it’s our goal to ensure you can afford the monthly payment and own 10-15% of the home at the end of a five-year period. 
4. Not considering the location: When it comes to buying a home, the old adage "location, location, location" still rings true. The location of a property can significantly impact its value and quality of life for its owners. The proximity of amenities like grocery stores, hospitals, parks and restaurants can also influence your decision, and don’t forget to consider factors such as safety, school districts, and the local job market, just to name a few. Ownify is thrilled to launch our services in the booming Triangle area, home to some of the best schools in North Carolina, an area with a growing job market due to the influx of major corporations to the Triangle and one of the most recession-proof locations in the country. Find out more reasons to buy in the Triangle area here.
5. Skipping the home inspection: Getting a home inspection is a vital step when buying a home. It's like giving your future house a check-up to make sure everything is in tip-top shape. Even if everything looks perfect at first glance, there could be underlying issues that only a trained professional can spot. Skipping this step could mean you end up with costly repairs down the road. With Ownify, you don’t have to worry about coordinating and paying for a home inspection, as that is one of the many aspects our team takes care of.
6. Rushing into a decision: Buying a home is a big decision and a significant investment that requires careful consideration. It's essential to take your time and do your research before making any final decisions. Rushing into a purchase without fully understanding all of the options can lead to regret and potentially costly mistakes. When partnering with Ownify to buy your first home, we want to ensure you, as our partners in fractional homeownership, are ready. We help to alleviate many of the common concerns and challenges that hold up this decision process, so you can focus on finding the right home for your family. 
7. Overlooking the importance of a good real estate agent: Enlisting the help of a good real estate agent can make all the difference. A knowledgeable agent can help guide you through the entire process, from searching for properties to negotiating with sellers and closing the deal. They can also offer invaluable insights into the local real estate market, provide expert advice and answer any questions you may have along the way. When selecting an agent, be sure to look for someone who has experience working with first-time homebuyers. At Ownify, we’re proud to partner with real estate professionals who understand the Ownify process and believe in the power it has to make homeownership achievable for the next generation of homebuyers. Without these trusted professionals, we couldn’t help first-time homebuyers bring their American Dream to life.  
8. Getting too emotional: Buying your first home is a big decision. It’s where you’re going to live for a long time, building memories with your loved ones. Yet it is also the largest financial decision most of us will make in our lifetimes. Stay rational and smart, especially in competitive situations. Don’t get carried away by the FOMO sellers and listing agents often engineer around the bidding process. Partnering with professional partners like Ownify and a good real estate agent will protect you against your emotions taking over.

Owning a home doesn’t have to be an overwhelming experience for first-time buyers. By being aware of the common pitfalls and taking proactive steps to avoid them, you can make the homebuying process more manageable and less stressful. Ownify can help first-time homebuyers overcome many of the common obstacles by providing the unique opportunity of fractional ownership in the Triangle area. With the help of Ownify, you can embark on your home buying journey with confidence and peace of mind. Get prequalified today and obtain your custom home buying budget.

If you're ready to get pre-qualified then apply now here.

If you would like a quick check on your eligibility for Ownify, use our tool here.