Top 5 Homebuyer Mistakes—and How to Avoid Them
2026
From the home search until closing, you’ve got lots to think about and do. It’s not unusual to make a mistake. But with the financial stakes so high, one false move can cost you serious money. Here are the top 5 homebuyer mistakes, with advice on how to avoid them.
1. Assuming you’ll get the price down after making an offer. This strategy may work sometimes, especially in a weak seller’s market. But we’re in a hot buyers’ market now. Your seller will most likely have a backup offer from another buyer who really wants the home, and who’s hoping your deal falls through. If you ask for unwarranted credits, the seller may simply go with the backup offer, leaving you out in the cold.
A better strategy: Make your best offer and don’t try to get the price down later.
2. Waiting until the eleventh hour to ask for credits. I know of a seller in Houston who’d put his house on the market with full disclosure that it had termites. A buyer made an offer and went into contract with the seller. After further inspections, and at the last possible minute, the buyer demanded that an unreasonable amount be deducted from the sale price. The buyer assumed that the seller, not wanting to put the house on the market again, would agree in order to close the deal. The buyer assumed wrong.
The seller agreed to reduce the price but not by the full amount the buyer wanted. The buyer walked away from the deal. The house sold soon after at a higher price than what was negotiated with the buyer who bailed.
A better strategy: Ask for credits if an inspection turns up potentially costly repairs you didn’t know about when you made your offer. But even in a buyers’ market, don’t assume you can get sellers to cave in to unreasonable demands at the 11th hour.
3. Chasing a deal at all costs. We all want to save money, especially on a high-ticket item like a house. But this desire sometimes causes would-be buyers to make lowball offers in hopes of getting a “deal.” Or potential buyers lose out on homes they might have been able to get otherwise, which ends up costing money in the long run.
A better strategy: In a strong real estate market like the current one, the deals are in homes that have been overpriced and therefore haven’t sold. Or you’ll find deals in properties that don’t show well because they need work. If the home you want is priced reasonably, is in a good neighborhood, and doesn’t need much work, make a solid offer. And be prepared to go over asking if necessary.
4. Thinking you can do it all yourself. With so much information about homes available online, many people assume they can buy a home without a real estate agent’s help. But this plan can backfire.
A better strategy: Get a good agent. He or she will present your offer to the seller’s agent in a way that will help get it accepted. The agent will make sure your offer sticks through an escrow. A savvy agent also knows the ins and outs of the local market better than a buyer will. The agent knows the back-stories behind the comps. He or she will know that a comparable home sold for 5 percent less (than the home you’re considering) because the sellers were divorcing or the property had a retaining wall problem. Without an agent, you’d simply see that the comparable home sold for 5 percent less. You might ask the seller of the home to match that 5 percent reduction. And you may be unpleasantly surprised when the seller declines.
Also, experienced agents have a strong network in the local market, which can give you an added edge. Good agents like to work with other good agents. And if nothing else, keep in mind that a listing agent might not even consider working with an unrepresented buyer.
Remember that the seller pays the buyer’s real estate commission, so having an agent for your home search costs you nothing. Most importantly, there’s bound to come a time during the complicated real estate transaction when you have serious doubts or big questions. Your agent can be a trusted adviser who walks you through the maze.
5. Not thinking like a seller. In the future, you’ll probably need to sell the home you’re about to buy. That’s why it’s important to think like a potential seller as well as a buyer.
In 2005, for example, a San Francisco buyer purchased a home without a garage. The house was on multiple transit lines. He used his bicycle to get around. And he knew he’d have access to a leased garage space if he needed it. So he decided he didn’t need a garage.
Three years later, during a slow market, the owner had to sell. He didn’t feel his home should be priced less than a comparable property with a deeded garage because his house was so centrally located. In addition, he had that leased garage space to offer.
But many buyers drive to work. And they don’t want to risk losing a leased garage space. The result: Many buyers wouldn’t even look at his home’s online photos, let alone go to the open house—all because there was garage.
A better strategy: When buying a home, put yourself in a potential seller’s shoes. The last thing you want is to buy a dream home that becomes a nightmare when it’s time to sell.
