Buying property should be exciting—but it can also be full of potholes. One wrong move and you could lose thousands, miss out on the right property, or stay stuck renting while prices rise.
Even experienced buyers make mistakes that sabotage their goals. If you’re buying a home or an investment, here are the top 10 errors that trip people up—and how to avoid them.
Mistake 1: Falling in Love with Homes Outside Your Budget
It starts innocently. You click on a beautiful listing just a little over your limit. Then you go to a few opens. Before long, the properties you can afford look dull, too small, not good enough.
This is one of the biggest mistakes buyers make. They waste time chasing the unaffordable, lose motivation, and end up going in circles—never buying.
How to avoid it: Set a hard budget based on your borrowing power and cash reserves. Only inspect homes in your range, and resist the temptation to “just have a look” at that next level up. Stay focused.
Mistake 2: Letting Emotion Take Over
For home buyers, falling in love with a property is part of the journey—and that’s okay. But when emotion takes over completely, it can lead to poor decisions: blowing the budget, ignoring location issues or overlooking flaws.
Investors also fall into this trap, drawn to a property’s charm rather than how it stacks up against their goals.
How to avoid it: Emotion has a place—but logic needs a seat at the table too. Ask yourself: does this home really suit our family’s needs, budget and lifestyle? Or for investors—does it deliver the return or growth we’re aiming for?
Mistake 3: Not Understanding the Property’s True Value
Some buyers overpay without realising it. Others make lowball offers again and again and miss out every time.
Why? Because they don’t understand what the property is actually worth.
How to avoid it: Study recent sales in the area—not asking prices, but actual results. Look at similar properties in terms of land size, condition, location and features. Don’t rely on computer-generated valuations—they often miss the nuance. Do your homework or get someone on your side who knows how to price property accurately.
Mistake 4: Underestimating the Real Costs of Buying
You’ve saved the deposit and sorted finance—but have you counted the rest?
Many buyers are caught off-guard by the cash needed upfront for stamp duty, settlement costs, mortgage setup, inspections, legal fees and more. None of these are covered by your home loan—unless you’re using an equity loan.
How to avoid it: Budget in every cent upfront. These are real, cash-upfront expenses that can throw your plans off if you don’t plan ahead.
Mistake 5: Rushing In Without Doing Proper Checks
You find the “perfect” property and don’t want to miss it. But skip the due diligence, and you could be buying into a flood zone, next to a future high-rise, or into a strata with ugly legal battles brewing.
How to avoid it: Always do your checks. Zoning, flood risk, surrounding developments, building condition, strata meeting minutes if applicable. Ask the right questions and don’t be afraid to dig deep—even if the agent seems rushed.
Mistake 6: Choosing the Wrong Location
A property might tick all the boxes—but is the location right?
The feel and quality of the suburb matter—think safety, good schools, lifestyle appeal, cafes, parks and how the area feels at different times. These are crucial for both home buyers and tenants.
Then there’s what drives long-term performance. Location affects capital growth and rental returns. Proximity to major infrastructure like transport, freeways and rail lines, access to jobs, nearby amenities, beaches or rivers, and future suburb plans all influence a property’s potential.
How to avoid it: Go deeper than online listings. Make sure the location matches your goals. Understand what drives demand in the area. A knowledgeable buyer’s agent can give you insights you won’t get from a brochure or a map.
Mistake 7: Buying the Wrong Property Type for Your Goals
An apartment might look shiny and low-maintenance—but will it deliver the long-term growth you want? A house in the suburbs may seem like a great home, but does it match your lifestyle?
How to avoid it: Match the property type to your goals. If you’re chasing capital growth, focus on land content. If it’s yield, check the rental return and demand. If it’s a home, make sure it suits your family’s needs today and tomorrow.
Mistake 8: Skipping the Strategy and Chasing Shiny Objects
You start with a plan: investment return, a home near the kids’ school, or a retirement base. But a few open homes later, something catches your eye and you’re off track.
How to avoid it: Get clear on your goals—then filter every property through them. If it doesn’t match, it’s not for you. Strategy first, property second.
Mistake 9: Trusting the Wrong Advice
Most people mean well. Friends and family want to help, but they may not have up-to-date knowledge. Selling agents are also doing their job—but they represent the seller, not you.
How to avoid it: Get advice from professionals whose sole role is to protect your interests. Make sure they’re qualified, experienced and independent. You need someone who can back their advice with real-world property insight and zero conflict of interest.
Here’s how a buyer’s agent protects your interests every step of the way
Mistake 10: Letting Fear Keep You Frozen
What if the market crashes? What if I lose my job? What if I buy the wrong place?
These are real fears—but staying stuck out of fear can be the biggest mistake of all. While you’re on the fence, others are building equity and getting ahead.
How to avoid it: Be informed, build in buffers, and get guidance. Yes, there’s risk—but there’s also opportunity. The right support can give you the confidence to move forward.
See how a trusted, award-winning buyer’s agent can support clients all the way
The Bottom Line: You Don’t Need to Do This Alone
Property buying is complex—and high stakes. These 10 traps catch out even experienced buyers. But they’re avoidable. Are you ready to buy smarter and avoid the costly traps? Start with our simple Getting Started form. Tell us what you’re looking for, and we’ll help you move forward with clarity and confidence. https://propertywizards.com.au/getting-started/
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Established in 2004, Property Wizards works with local, interstate and overseas home and investment buyers seeking to buy property in the greater Perth metropolitan area. Property Wizards takes away the stress of buying property and saves you time and money. Regardless of market conditions, our research, knowledge, and access to silent sales means we find and negotiate properties with potential to outperform the market in capital growth and rental returns. Importantly, we provide home buyers and property investors with the same level of representation that property sellers have benefited from for years.
