Biggest Mistakes Homes Buyers Are Making In 2025

In today’s Austin housing market, buyers and sellers are making some critical mistakes that could cost them in the long run. Here’s a breakdown of the biggest mistakes buyers and sellers are making right now:

Biggest Mistakes Buyers Are Making in the Austin Market

1. Not Shopping for an Outside Lender for New Construction
   New construction homes often come with incentives like interest rate reductions or closing cost credits, but many buyers overlook one key element: fees. Builders sometimes include hidden fees or inflate the price of the home to cover these “incentives.” It’s crucial to get an outside lender to review these fees to ensure you’re getting a fair deal. You could end up paying more in the long run if you're not careful.

2. Ignoring Property Taxes
   Many buyers are so focused on the sale price or interest rates that they forget about property taxes. New construction homes can come with higher-than-expected tax rates, which can make a significant difference in monthly payments. Make sure to check the tax rates for the area you're considering to avoid any surprises down the road.

3. Falling in Love Too Early
   It's easy to fall in love with a property and overlook potential issues during the inspection phase. Some buyers get emotionally attached and don't negotiate enough on repairs or price reductions after an inspection. If the house needs significant work, don’t hesitate to walk away or negotiate harder for a better deal.

4. Not Negotiating the Price Down
   A common mistake is focusing too much on closing costs or interest rates and not enough on negotiating the sale price. In today’s market, you’re often better off asking for a price reduction instead of asking for extra incentives. Lowering the sale price directly impacts the home’s equity, whereas incentives won’t give you as much long-term value.

5. Rushing Into a Deal
   In a market with more homes to choose from, patience is key. Don't feel rushed into buying just because a home "looks good." Take the time to research and negotiate. Sometimes waiting for the right deal, especially in neighborhoods with a lot of inventory, could work out better in your favor.

6. Not Vetting Your Realtor
   The right realtor is crucial in today’s market. Many buyers work with agents who lack experience or don’t negotiate properly in a shifting market. Make sure to interview your agent and ask how they’ve helped clients in similar situations, especially when it comes to navigating a slow market or handling price reductions.

Biggest Mistakes Sellers Are Making in the Austin Market

1. Overpricing the Home
   In a market where inventory is rising, pricing right is more important than ever. Sellers who overprice their homes risk having them sit on the market for 30+ days. After that, price reductions are inevitable. Price it right from the start to avoid extended market time and to attract more buyers.

2. Delaying Price Reductions
   Sellers are sometimes reluctant to drop their prices. However, if a home sits on the market too long, it becomes harder to sell. Homes that aren’t priced right from the beginning will have to see multiple price reductions, and that can hurt the property’s perceived value. Reduce the price early to stay competitive in the market.

3. Ignoring Buyer Demands
   In today’s market, buyers are negotiating more aggressively. Sellers who don’t accommodate requests for repairs or closing cost credits risk losing potential buyers. Flexibility and being open to negotiation can help close the deal.

Overall Market Shifts

• Buyers: There’s more inventory, fewer bidding wars, and better negotiating power. If you’re a buyer, this is a great time to negotiate and potentially find value.

• Sellers: With more competition and homes sitting longer, pricing smartly is essential to avoid sitting on the market for too long.

So, What’s the Bottom Line?

• Buyers: Be patient, negotiate hard, and work with a trusted lender and experienced realtor.

• Sellers: Price your home accurately from the start, be ready to adjust quickly, and negotiate effectively with buyers.

What Do You Think?