If you’re a first-time homebuyer, you naturally have less experience than seasoned real estate investors. And inexperience often translates to overpaying for a property.
In fact, a typical first-time buyer overpays by an average of $2,200—nearly 0.8 percent. But you can avoid overpaying—and save thousands of dollars—if you keep a few things in mind:
Inexperience brings overeagerness
According to the Federal Housing Finance Agency’s Jessica Shui and Shriya Murthy, “The underlying reason for first-time homebuyers’ overpayment likely is their inexperience.” Many first-time buyers are so excited about buying their first property that they lose sight of their budget and pull the trigger for the sake of finalizing a purchase. Take a step back, weigh the pros and cons, then make a final decision after the heat of the moment has passed.