With Halloween just behind us, potential buyers may find themselves spooked when it comes to committing to homeownership. In fact, between rising prices and daunting down payment amounts, the fact that the homebuying season typically slows down in the fall may not be a coincidence...

The reality is that homeownership doesn’t have to be a creepy, crawly experience, though. In fact, with a little expectation setting and plenty of preparation, you can actually become the hero in even the scariest homeownership horror stories. To assist, we’ve assembled six of the most common scare tactics that potential buyers fall prey to, so you’ll know just what to watch out for and how to overcome.

Daunting Down Payment amounts

The myth that you need 20% down is one of the scariest and most pervasive horror stories in the modern history of homeownership. With ever-increasing asking prices, that figure has slowly climbed higher and higher, discouraging would-be buyers across the nation. To overcome any blood-curdling calculations, keep in mind that the expectation of 20% down is not reality.

While it’s generally true that the more a buyer can contribute to a down payment the better, the actual amount needed will vary widely depending on the type of loan a buyer is interested in. There are also certain first-time homebuyer programs and even basic budgeting tips that can quell some of your anxiety.

A scary-hot market

It’s no secret that the real estate market has been on fire, which could feel a bit intimidating or even outright terrifying (CNN, 2021). Don’t let the competition scare you away, though!

Buyers are turning out in record numbers for a reason. Mortgage rates are enticingly low, people are now spending much more time at home than ever before and homeownership remains an important pillar of the American Dream (The New York Times, 2021). With competitive financing and the right homebuying team, buyers can overcome their fear and find the perfect property no matter the competition.

Sneaky hidden costs

Hidden costs, including property taxes, insurance, and pest control often spook new homeowners (Investopedia, 2021). After all, these charges really will sneak up on you!

To avoid a scare, research and budget for hidden costs ahead of time. The owner of an average mid-sized home can expected to pay nearly $10,000 in hidden costs, although that figure will fluctuate depending on your market and property (MarketWatch, 2018). Regardless, a dedicated bank account or regular budgeting efforts leading up to the purchase can help buyers avoid a hefty financial fright.

Petrifying furniture prices

Once a buyer has officially secured the home of their dreams, they could still be in for quite a shock! After all, furniture certainly isn’t cheap and, in the age of COVID-19, comfort and sturdiness have become far more critical. The potential for fear goes double if the buyer is moving into a significantly larger home and will need to account for spare bedrooms, a home office, dining room, or other new spaces.

Luckily, a few thoughtful practices can ease some of that fear almost instantly. For example, a buyer may want to consider shopping second-hand for affordable and environmentally friendly options. Some eCommerce sites even have a ‘free’ section for further savings. Or, buyers may want to get in the creative spirit and try their hand at DIYing. Buyers might feel less fearful and more powerful with a paintbrush in hand!

Alarming home maintenance tasks

The dryer breaks, the HVAC system is struggling, and there are mounds of leaves just waiting to be raked. Who you gonna call? Unfortunately, not the landlord. Adjusting to managing all aspects of home maintenance can cause yet another shock among new homeowners.

To overcome the fear, buyers might consider employing a calendar to schedule out and track any maintenance projects. For example, buyers should clear the gutters each fall and optimize the sprinkler system every summer. Buyers will also want to make sure to check up on home systems as scheduled even if they don’t need any immediate improvements, as they can still gauge their level of function and make any necessary notes for next year.

From daunting down payment amounts to frightening furniture costs, the path to homeownership can seem a bit harrowing. Luckily, with a deeper understanding of the process and a bit of preparation, buyers can move past fear and into ownership!