1. Making a lowball offer without understanding the market

Everybody wants to get a good deal on a house.

And there's absolutely nothing wrong with negotiating.

But one of the biggest mistakes buyers make is assuming they should always start with an offer significantly below the asking price.

Sometimes that strategy works. Other times, it can cost you the house.

Let's say a home is listed for $250,000, and recent comparable properties suggest that it's priced appropriately.

If you come in at $220,000 without a strong reason for that number, the seller may not take the offer seriously.

They may reject it outright, counter at a less favorable price, or choose to work with another buyer.

On the other hand, if the property has been sitting on the market for several months, needs significant repairs, or is priced above comparable sales, a lower offer might make perfect sense.

The key is understanding the situation before deciding on your offer.

How to avoid this mistake

Before making an offer, review recent comparable sales and evaluate the property's condition, asking price, and time on the market.

It's also important to consider whether there are other interested buyers and what terms might matter most to the seller.

Sometimes a strong offer isn't just about price.

Financing, inspection terms, closing timelines, and possession dates can all influence how a seller evaluates an offer.

2. Assuming a For Sale By Owner home is automatically a better deal

Every once in a while, a buyer will come across a home being sold directly by the owner and assume they've found an opportunity to save money.

And I understand the thought process.

If the seller isn't using a listing agent, there may be fewer real estate service fees involved in the transaction.

But that doesn't necessarily mean the seller is offering the property for less than market value.

In many cases, homeowners selling For Sale By Owner, commonly referred to as FSBO, are hoping to save money on their own selling expenses.

That doesn't automatically translate into savings for the buyer.

And purchasing a FSBO property can come with additional considerations.

What should you watch out for?

• Pricing: Has the seller priced the home based on comparable sales or simply chosen a number they want?
• Property condition: Have you had an opportunity to evaluate the home and complete appropriate inspections?
• Disclosures: Have you received the applicable property condition information and disclosures?
• Contracts: Are the purchase agreement, deadlines, contingencies, and other terms clearly documented?
• Representation: Do you understand who represents whom and how any agent compensation will be handled?

One thing that's important to understand is that a FSBO seller is not automatically required to pay your buyer's agent.

Real estate commissions are negotiable, and compensation arrangements should be discussed and understood before moving forward.

How to avoid this mistake

Evaluate a FSBO home the same way you would any other property.

Review comparable sales, understand the property's condition, and make sure you're comfortable with the contract terms.

If you're working with a buyer's agent, talk through the representation and compensation arrangements before making an offer.

And remember, a home isn't a good deal simply because it isn't listed with a real estate brokerage.

It's a good deal when the price, condition, and terms make sense for you.

3. Taking advice from people who don't understand your situation

This one might sound a little funny, but it's something I see fairly often.

You're excited about buying a home, so naturally you start talking to friends and family about the process.

And before long, everybody has an opinion.

Your parents might tell you what they paid for their first home.

A friend might say you should never offer asking price.

Someone else might tell you to avoid a particular type of house or neighborhood.

Most of the time, these people genuinely want what's best for you.

But their advice may be based on a completely different housing market, financial situation, or personal experience.

Real estate changes over time, and what worked for someone ten or twenty years ago may not be the best strategy today.

How to avoid this mistake

It's perfectly fine to ask friends and family for their opinions.

Just make sure you're also relying on accurate information from people who understand your current situation.

That might include your real estate agent, mortgage lender, home inspector, or another qualified professional.

And don't underestimate what you've learned during your own home search.

After touring several homes, reviewing comparable properties, and understanding what's available in your price range, you'll start developing a much better sense of value.

That firsthand experience matters.

4. Choosing a mortgage lender based only on the advertised interest rate

One of the first things most buyers do when they start thinking about purchasing a home is look into mortgage rates.

And that makes sense.

Your interest rate can have a significant impact on your monthly payment and the total cost of borrowing.

But here's something I always encourage buyers to remember: the lowest advertised interest rate isn't necessarily the best overall loan.

Mortgage offers can vary based on closing costs, discount points, lender fees, loan programs, and other terms.

And when you're purchasing a home, communication and reliability matter, too.

A delayed appraisal, missing document, or misunderstanding about a financing deadline can create unnecessary stress during the transaction.

Local lender or online lender?

I've had good experiences with local lenders, and I appreciate the relationships and communication that can come with working with someone who understands the Topeka market.

But that doesn't mean every online lender is a bad choice or every local lender is automatically better.

There are excellent lenders operating through both models.

The important thing is finding someone who is knowledgeable, responsive, and able to offer competitive financing for your situation.

How to avoid this mistake

Before choosing a lender, compare more than the interest rate.

• Review official Loan Estimates for comparable loan scenarios.
• Ask about lender fees and discount points.
• Understand the estimated monthly payment and cash needed to close.
• Find out how quickly the lender communicates and processes documents.
• Ask about their experience handling purchase transactions.
• Make sure you're comfortable with the person guiding you through the loan process.

Buying a home is a big financial decision, and having a lender you trust can make the experience much smoother.

5. Assuming the seller will pay your closing costs

This is a mistake that can catch first-time homebuyers off guard.

When you start talking with a lender, you may learn that some mortgage programs allow sellers to contribute toward a buyer's closing costs.

And that's true.

But just because a seller can pay certain closing costs doesn't mean they're required or willing to do so.

Seller concessions are part of the negotiation.

And whether they're realistic depends on the home, the market, your loan program, and the terms of your offer.

What are buyer closing costs?

Closing costs can include expenses such as:

• Loan origination and lender fees
• Appraisal expenses
• Title and settlement charges
• Prepaid homeowners insurance
• Property tax and insurance escrow deposits
• Other loan-related and transaction expenses

These expenses are separate from your down payment.

And while seller concessions may help offset some of them, there are limits based on the loan program and transaction.

How to avoid this mistake

Before you start touring homes, talk with your lender about your estimated cash needed to close.

Then, when you find a property, work with your agent to determine whether requesting seller-paid closing costs makes sense.

For example, a seller with multiple offers may be less willing to contribute toward your expenses.

But a property that's been listed for a while may offer more room for negotiation.

Sometimes buyers can also structure an offer that includes closing cost assistance while still making the overall terms attractive to the seller.

Every situation is different, and that's why having a strategy matters.