In November 2014, my spouse and I were thrilled to finally get the keys to our first home, achieving a dream we’d both cherished for a long time. We love to socialize and host gatherings, so inviting family and friends over was something we really looked forward to. We also enjoyed making continuous improvements to our home, embracing the values of homeownership. However, just 18 months later, we’re already considering selling, possibly this summer or the next. What went wrong?
As first-time homeowners, we made several common mistakes, but we quickly learned from them to avoid making the same errors again.
First, we didn’t consider long-term planning. We saw our small home as a stepping stone with big plans for expansion. Yet, the increasing costs of maintaining an older property made these plans unrealistic. Now, we’re likely to move out much sooner than our initial five-year plan. When buying a home, it’s crucial to have a long-term vision and think about how it will fit into your future life stages.
Second, save up for a 20% down payment. In our eagerness to jump into the property market before prices soared, we bought our home with just a 10% down payment. While this let us buy in a high-priced area, it resulted in high monthly mortgage payments. Fortunately, with the equity we’ve built and continued savings, we’re hopeful to hit the 20% mark next time.
Third, take your time to find a great realtor—one you can really trust. In retrospect, we could have gotten a better deal if we had been more proactive and chosen a more experienced realtor.
Fourth, pay close attention to all the details. It’s easy to be charmed by a house’s overall appeal, but make sure to inspect every corner and account for any repair costs.
Lastly, keep emotions in check during the buying process. While buying a home feels very personal, it’s ultimately a business transaction.
So, what lessons did you learn from buying your first home? What would you do differently next time?