Buying Your First Home

Key Takeaways

• Budget 3% of your home's annual value for maintenance and repairs (e.g., $9,000/year for a $300,000 home), especially for major expenses like air conditioners ($8,000-$10,000 in Arizona) and roof repairs
• Avoid putting 20% down if it depletes your emergency fund; instead, buy under your means so your monthly mortgage is less than your current rent, giving you cushion for unexpected repairs
• Work with the seller's realtor to negotiate reduced commission fees (1-2% savings on a $300,000 home = $3,000 saved) or ask local realtors in your network for discounts
• Hire specialized inspectors for specific trades (plumbing, electrical, roof) beyond the general home inspector to identify code violations and negotiate seller credits or warranties before closing
• Don't buy a home if you have unstable income, plan to move within 1-2 years (closing costs eat into appreciation gains), or lack an adequate emergency fund—especially if you have other debts like car loans or startup business costs