Five Mistakes Home Buyers Make

Affordable home prices and historically low interest rates have created an ideal situation for qualified home buyers. However, some buyers may be overconfident. Here are five common mistakes made by home buyers. Every home buyer should take note to avoid an expensive mistake.

1. Many buyers think they can save money by forgoing the use of a Realtor. However, managing the nuances of offers, negotiations, financing, inspections, mounds of paperwork and other crucial steps when buying a home often causes confusion and anxiety for buyers. Working with a Realtor -- who is obligated to put the buyer's best interests first -- will help to alleviate buyer concerns and will make the whole process run smoother.

2. Many buyers mistakenly take a do-it-yourself approach to financing. They use online calculators to estimate how much house they can afford, but calculators should not be the sole source for mortgage-approval information. The costs of buying and owning a home go well beyond the sticker price, as maintenance costs, moving fees and association dues must be considered. Buyers are advised to meet with a mortgage broker or banker prior to beginning the home search to help determine the loan amount for which they are most likely to be approved.

3. Don't let charm cloud your judgment. You may find an older home with lots of appeal or find a house that is decorated just right but don't forget the things you're really looking for in a house. Try to think more in terms of size, floorplan and condition and remember that buying a home is a business deal. Additionally, expressing too much emotion to the home seller and revealing eagerness to purchase the home at all costs should also be avoided.

4. You can always fix up the house, but there's no easy remedy for annoying neighbors, oppressive homeowner association rules and lengthy commutes. Do your homework first and find the perks, quirks and hassles of living in a particular place.

5. Although there is a large selection of homes available for sale, home buyers should not assume they can make low offers or unreasonable demands. Even in hard-hit housing markets, homes in desirable neighborhoods are receiving multiple offers.