First-Time Homebuyer's Guide: What 5 Real Estate Professionals Wish You Knew

Buying your first home is often described as one of life's most significant milestones, and for good reason. It's a complex process filled with unfamiliar terminology, unexpected costs, and important decisions that will impact your financial future. While the journey to homeownership is exciting, it can also be overwhelming if you're unprepared.

To help navigate this complex process, we've gathered insights from five real estate professionals who work with first-time homebuyers daily. These experts share their most valuable advice on what they wish every first-time buyer knew before starting their homeownership journey.

Understanding Your Budget Beyond the Down Payment

Many first-time buyers focus exclusively on saving for the down payment, but this is just one piece of the financial puzzle.

Harpreet Saini, CEO at We Buy Houses in Metro Detroit

"What surprises most first-time buyers is the total cost of homeownership beyond the mortgage payment. I always advise clients to account for property taxes, homeowners insurance, possible HOA fees, maintenance costs, and utilities when calculating their budget. A good rule of thumb is to set aside 1-2% of your home's value annually for maintenance and repairs. The buyers who plan for these expenses are the ones who transition most comfortably into homeownership without financial strain."

Saini also recommends getting pre-approved, not just pre-qualified, before beginning your home search. Pre-approval involves a more thorough financial review and gives you a more accurate picture of what you can afford while strengthening your position when making offers.

Looking Beyond Cosmetic Features

In today's world of home renovation shows and picture-perfect real estate listings, many first-time buyers get caught up in cosmetic features rather than focusing on the elements that truly matter.

Brandon Hardiman, Owner at Yellowhammer Home Buyers

"I see it all the time, buyers fall in love with updated kitchens and beautiful bathrooms, but miss critical issues with the home's foundation, roof, or major systems. Cosmetic updates are relatively easy and can be done over time, but structural problems or outdated electrical systems can cost tens of thousands to repair. I always tell first-time buyers: focus on the bones of the home first. Check the age of the roof, HVAC system, water heater, and electrical panel. These are the items that can break your budget if they need replacement shortly after purchase."

Hardiman suggests attending the home inspection in person and asking questions throughout the process. This provides invaluable education about your potential new home and helps you understand which issues are minor concerns versus major red flags.

Understanding the True Cost of Fixer-Uppers

The appeal of buying a fixer-upper at a lower price point and transforming it into your dream home is strong, especially for budget-conscious first-time buyers. However, the reality often differs from the renovation shows that make it look easy.

Andrew Reichek, CEO of Bode Builders

"I've had numerous clients underestimate renovation costs by 50% or more. What looks like a simple cosmetic renovation can quickly spiral when you open up walls and discover plumbing issues, electrical problems, or structural concerns. If you're considering a fixer-upper, always get detailed estimates from licensed contractors before making an offer, and add a 20% buffer for unexpected costs. The most successful first-time renovators start with properties that need mostly cosmetic updates rather than major overhauls, especially if they plan to live in the home during renovations."

Reichek also emphasizes the importance of researching permit requirements in your area, as unpermitted work can cause headaches when it's time to sell.

The Importance of Location and Future Resale Value

While your first home purchase is exciting, it's important to remember that it likely won't be your forever home. Most first-time buyers stay in their initial purchase for 5-7 years before upgrading or relocating.

Devin Ramos, founder and CEO of Simplifi Real Estate

"First-time buyers often focus exclusively on their current needs without considering future resale value. Even if you think this is your forever home, circumstances change job relocations, growing families, or other life events may require you to sell sooner than expected. Properties in good school districts, with shorter commute times to major employment centers, and in neighborhoods with strong appreciation histories tend to hold their value better. Sometimes paying a bit more upfront for a better location is the wisest financial decision in the long run."

Ramos advises researching neighborhood trends, development plans, and school ratings, even if you don't have children, as these factors significantly impact property values over time.

Don't Skip the Financial Preparation

The excitement of house hunting often leads first-time buyers to rush into the process before they're financially ready, which can lead to disappointment or financial strain.

Jessica Wright, CEO at Cash For Houses Tennessee

"The buyers who have the smoothest experience are those who spend 1-2 years preparing financially before they even start looking at homes. This means checking and improving credit scores, paying down debt to improve debt-to-income ratios, saving not just for the down payment but also for closing costs and a healthy emergency fund. I recommend having at least six months of housing expenses saved as an emergency fund before purchasing. Remember that homeownership comes with unexpected expenses that renters don't face—when the water heater fails or the roof leaks, there's no landlord to call."

Wright also notes that many first-time buyers aren't aware of all the assistance programs available to them. "There are hundreds of down payment assistance programs across the country, many specifically designed for first-time buyers. Some offer grants or forgivable loans that never need to be repaid if you stay in the home for a certain period. These programs can make homeownership accessible years earlier than you might think possible."

Final Thoughts for the First-Time Homebuyer

As you embark on your homebuying journey, remember that education is your best tool. Take advantage of first-time homebuyer courses (many are free), read books on the process, and surround yourself with experienced professionals who can guide you through each step.

The experts all agree on one thing: patience is crucial. The right home at the right price will come along, and being prepared financially and educationally will help you recognize it when it does. Don't let emotions or external pressure rush you into the largest purchase of your life.

With careful planning, realistic expectations, and the right team of professionals on your side, your first home purchase can be the exciting and rewarding experience it should be, setting you up for financial success and the satisfaction of homeownership.