Buying a first home is always stressful. Buying now, with property price increases eating into savings and inflation driving up the cost of home repairs, is proving to be particularly costly for some first-time buyers.
New buyers are putting more money into down payments and increased closing costs as prices go up. To compete in the current market, buyers are also waiving inspections and making fast deals, brokers say—decisions that pose big risks and potentially bigger costs.
Waiving an inspection can often mean buyers face needed repairs shortly after moving in, just when budgets are already stretched thin. And the cost of those repairs is higher than usual right now, thanks to labor shortages and inflation pushing up the price of goods. Inflation rose 7% in December, as prices for appliances, household furnishings and household operations all increased.
