I’m a Real Estate Agent: 5 Mistakes Buyers Make in the 2024 Market
Written by
Heather Altamirano
Edited by
Jenna Klaverweiden
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Owning a home is a dream for many, but it’s also a headache that can turn into a nightmare quickly, especially in today’s housing market. With high interest rates and low inventory, buyers face steep challenges and can easily make costly mistakes trying to get an edge over the competition.
GOBankingRates spoke with Yawar Charlie — a senior real estate agent, the director of Aaron Kirman Group’s estates division and a cast member of CNBC’s “Listing Impossible” — to get his insights. Here are five top mistakes buyers make in the 2024 market and how to avoid them.
Overextending Financially
Be realistic about what you can afford. Don’t go over your budget and deal with unnecessary financial stress.
“With interest rates at a 20-year high, buyers often fall into the trap of stretching their budget too thin,” Charlie said. “I’ve seen buyers get caught up in the excitement, only to find themselves house-rich but cash-poor. Trust me, no one wants to be eating ramen in their dream home because they overextended.”
Skipping the Preapproval Process
Another mistake buyers make in this market is skipping the preapproval process, which can have serious downsides.
“Showing up to a home viewing without a preapproval is like going to a fancy dinner without your wallet — it’s just not going to work out,” Charlie said. “In this fast-paced market, sellers need to know you’re serious. I can’t tell you how many times I’ve seen buyers miss out on their dream home because they weren’t preapproved. Get your ducks in a row before starting house hunting — this isn’t amateur hour.”
Underestimating the Importance of Location
When home shopping, remember that location is really important.
“You might fall in love with a house, but if you ignore the neighborhood, you could be setting yourself up for disaster,” Charlie said. “Imagine buying a gorgeous home only to find out the nearest coffee shop is 20 miles away, or worse, the area isn’t as safe as you’d like. And let’s talk about traffic — L.A. traffic is no joke. You don’t want to spend half your life stuck on the 405 just to get to work. Make sure the location suits your lifestyle — you’ll thank yourself later.”
Failing To Consider Future Resale Value
Life moves and changes in the blink of an eye, and you might need to sell your house at some point, so think about the resale value of your home before buying.
“You don’t want to be stuck with a property that’s hard to sell when it’s time to move on,” Charlie explained. “Consider factors like the neighborhood’s growth potential and the quality of local schools. And remember, your first home doesn’t have to be your dream home — it’s about building wealth and making a smart investment for your future. A little foresight can save you a lot of headaches down the line.”
Overlooking Home Inspections
And lastly, skipping a home inspection is a dire mistake homebuyers can make, as it can leave them with issues in their new home they weren’t aware of.
“Skipping the home inspection is a rookie mistake that can lead to serious regret,” Charlie said. “I’ve seen it all — from hidden mold to faulty wiring that could cost thousands to fix. Do yourself a favor and get a thorough inspection. It’s better to spend a little upfront than to be hit with unexpected repair costs after you’ve moved in. Your future self (and your wallet) will be grateful.”
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