Core Insights - The article highlights the seven most expensive mistakes first-time home buyers make and emphasizes that these mistakes are often avoidable with proper preparation and expert guidance. Group 1: Home Inspection - Skipping the home inspection can lead to costly repairs that may not be apparent initially, such as roof leaks or plumbing issues, which can cost tens of thousands to fix [2][19] - A professional inspection provides a clearer picture of projected expenses and should be treated as nonnegotiable [2][4] Group 2: Maintenance and Repair Costs - First-time buyers often underestimate ongoing maintenance and repair costs, which can lead to financial strain [3][4] - It is recommended to set aside 1% to 3% of the home's value annually for maintenance, which for a $400,000 home translates to $4,000 to $12,000 per year [4][20] Group 3: Homeowners Insurance - Many first-time buyers overlook gaps in homeowners insurance, assuming it covers all types of damage, including natural disasters, which it typically does not [7][21] - Separate insurance for floods or earthquakes can add significant costs, but these are minor compared to the potential financial loss from a disaster [8][9] Group 4: Market Timing - Waiting for the market to improve before buying can lead to missed opportunities, as market conditions rarely shift dramatically overnight [10][11] - Buyers should act when their finances are ready rather than waiting for an ideal market [12] Group 5: Agent Advice - Ignoring the advice of experienced real estate agents can lead to significant financial losses, as they provide valuable insights into the buying process [13] - Trusting an agent's expertise can help buyers navigate complex negotiations and avoid costly mistakes [13] Group 6: Preparation for Negotiation - Entering negotiations unprepared can result in unfavorable outcomes, including unexpected closing costs that can range from 2% to 5% of the purchase price [14][15] - Preapproval for a mortgage and understanding closing costs are essential steps before house hunting [15][16] Group 7: DIY Projects - Taking on DIY projects without adequate experience can lead to increased costs if professional help is needed to fix mistakes [17] - It is advisable to start with small projects and leave complex tasks to licensed professionals to avoid budget overruns [18]