Mistakes of Homebuyers

An increasing number of homebuyers are coming into the market. However, along with that trend, is an increasing number of financial regrets due to mistakes such as:

•  considering that renting may still be a viable financial choice in some situations; for example, if you may be moving due to a job or other circumstances.
• with rising housing prices and higher mortgage rates, some buyers may not be competitive when bidding on a property.
• other debts (such as a high car loan) may limit the monthly payment a person can afford.
• putting too much faith in online property prices, which can give a false sense of true home values.
• skipping the home inspection can result in not being aware of subtle home defects.
• unrealistic expectations of the future appreciation of the home.

For additional information on mistakes made by homebuyers go to:

http://www.cnbc.com/id/101837611

Teaching Suggestions

• Have students research suggestions for avoiding home buying mistakes.
• Ask students create an in-class presentation with suggestions for avoiding home buying mistakes.

 Discussion Questions 

1. What actions might be taken to avoid these home buying mistakes?
2. Describe other difficult situations that a person might encounter in process of buying a home.