Common Buyer Pitfalls and Red Flags to Avoid
After 24 years, I have seen every deal-killing mistake at least once. Most of them were avoidable. The buyers who got into trouble were not careless people -- they were people who moved fast without understanding what they were agreeing to.
Overextending the Budget
Buying at the absolute top of your approval amount leaves no margin for anything: a rate adjustment, an unexpected repair, a job disruption. The bank's maximum and your comfortable maximum are two different numbers.
Build in a cushion. Factor property taxes, HOA fees, maintenance, and utilities into your monthly budget before you decide what payment you can handle. A home you can afford to own comfortably beats a home you stretched for.
Waiving the Inspection to Win a Bid
In competitive markets, some buyers waive the home inspection to make their offer more attractive. I advise against it almost every time. An inspection is not just about negotiating repairs -- it is about understanding what you are buying. An HVAC system with two years of life left is different from one with fifteen.
There are ways to make an offer competitive without eliminating your ability to understand the home's condition. Talk to me before you decide to waive anything significant.
Questions as you read? Ask me right here.
Leave your name and email and I will answer it directly.
By submitting you agree to receive emails about your Arizona home search. See our privacy policy.
Prefer to talk now? Call or text (623) 826-0888. You reach me, not a call center. No spam, cancel anytime.
Not Understanding What You Signed
The Arizona Association of Realtors purchase contract is a detailed document. Buyers who skim it often miss deadlines, misunderstand what their earnest money is protected by, or do not realize what they agreed to on possession.
I go through the contract with every buyer I work with. Ask questions until you understand every section. If your agent does not have time to explain what you are signing, that is a red flag about your representation.
Moving Large Sums of Money Before Closing
Large, unexplained deposits in your bank account right before closing can flag your loan for additional scrutiny or hold up the closing. Lenders document the source of all funds used for closing. Moving money between accounts, receiving a large gift, or selling an asset all need to be disclosed and documented.
If you are receiving gift funds from a family member, your lender needs a gift letter. If you are selling a car or cashing in investments, disclose it early. Surprises at the lender's underwriting stage, days before closing, are the worst possible time to deal with them.
Live MLS search
See what is on the market in the Valley
Search live ARMLS listings in the Valley with the full map and filters, or tell me your criteria and I will set up automatic alerts so new matches reach you the moment they hit the market.
Written by
Jon Hegreness
REALTOR / Associate Broker, Howe Realty. AZ License BR540940000. 24 years in Phoenix Valley residential real estate.
I am a full-time Valley associate broker, not a call center. If anything here raised a question about your own move, ask me and you get a straight answer from the person who wrote this, every time.
Common questions
- Is it ever okay to waive the home inspection?
- Rarely. There are edge cases, like buying a newly constructed home still under builder warranty with a separate third-party inspection already completed. But for resale homes, waiving inspection means buying without understanding the property's condition. The risk usually outweighs the competitive benefit.
- What happens if I buy too much house and can't afford it?
- You will feel it immediately in your cash flow and over time in deferred maintenance and stress. Banks approve what you can technically afford under their guidelines, not what is comfortable for your lifestyle. Build a realistic monthly budget before deciding your ceiling.
- Do I need an agent when buying a new construction home?
- Absolutely, and the first visit matters most. Once you register at a builder's sales office without an agent, most builders lock that out -- they will not pay your agent later even if you bring one on the next visit. Bring your own representation on the first visit. It costs you nothing (the builder pays), and it means someone is watching your interests on the contract terms, upgrade pricing, and timeline. Search for new construction listings first at AZHomeSearchCentral.com so you know what is available before you walk into any model home.
- What financial changes should I avoid between pre-approval and closing?
- Avoid: opening new credit accounts, making large purchases on credit, changing jobs without telling your lender, depositing large unexeplained sums, or co-signing any loan. These can all affect your approval. When in doubt, ask your lender before doing anything financial.
More guides in the Learn library.