Jonathan and Drew Scott's Top Tips for New Home Buyers

HGTV hosts Jonathan and Drew Scott have a reputation for knowing when to buy a home and when to pass one up. The renovation and design experts can quickly sniff out whether a property calls for a major overhaul or simple cosmetic updates. In fact, some might call them real estate gurus. And so, they’re the ultimate confidantes when it comes to the home-buying process. While we all wish we could get them to head our real estate shopping dreams IRL (like they do for hopeful buyers in their new series, Property Brothers: Under Pressure), some simple advice from afar will have to do. In addition to learning a thing or two from the duo's new series, keep reading for Drew and Jonathan’s top tips for new home buyers.

A common mistake among new home buyers is disregarding the financial realities of the transition. And without proper planning, it’s easy to get in over your head, even if you get a loan approval. With this in mind, Jonathan says the first step of any home-buying process is determining your budget. “A good rule of thumb is that no more than 30% of your income should be going toward your mortgage … but it can be really personal depending on your existing debt, lifestyle and long-term plans,” he says. “Never, ever spend outside your means when it comes to a house. Some lenders will even tell you that you can afford more than you know you can. Don’t listen to that. You want to be able to handle all life’s twists and turns and still feel comfortable with your mortgage.”

The down payment and mortgage are only two pieces of the home-buying payout pie. When building a realistic budget, Drew reminds us that expenditures start even before the mortgage payments kick in. “Be sure to factor in those hidden costs, like property taxes, insurance, closing costs and even the home inspection,” he says. “You’ll also want to build a rainy day fund for maintenance, which might be new for those who have been renting for a long time.” All in all, Drew says that by considering all of these financial factors, you’ll be able to narrow down the home pool to find a property that best suits your budget and needs.

There’s no denying that buying a new home can be stressful, especially if you’re a first-time buyer. The secret to managing it all? Manage your expectations. “Buying a home can come with a lot of emotions: excitement, stress, disappointment, joy,” Drew says. “The key is to set your expectations from the beginning and be flexible. If you can have a rolling-with-the-punches mindset, you’ll be a lot more prepared.”

We’re often told to get right back up after getting knocked down. The problem is, this mindset can sometimes lead to rash decision-making. That’s why Jonathan suggests taking a moment to recalibrate when unexpected situations interrupt the homebuying process. “The process can be stressful, and it can force you to act on impulse,” he explains. “To some degree, you do have to work fast, but you also have time. So, let any emotional reactions come and go. Take a walk, take a deep breath and then decide. Also, any time we found the perfect property but didn’t get it, something even better always came along.”

On the topic of rash decision-making, Drew warns against taking shortcuts to snag the sale. “A competitive market can potentially pressure first-time home buyers to make rash decisions out of stress and lack of experience,” he explains. “That’s totally normal, and you’re not alone! But in those cases, it’s important to remember that this is a process that will best serve you if you don’t cut corners. Don’t do things like waive an inspection or offer more than you’re capable of to set you apart. Go through the proper channels, take calculated risks with the advice of your real estate agent and ultimately know that if you lose out on a house because you weren’t willing to go outside your comfort zone, that wasn’t the right situation for you.”

A home isn’t just a structure. It’s a space where people come together and make memories. Buying a new home isn’t just about real estate strategy or money. Emotions play a role, too. “To differentiate yourself [in a competitive market], you want to strike the right balance between the emotional and logistical requirements,” Jonathan says. “For example, some sellers feel really connected to their home and want it to go to a buyer who will treat it with care. In this way, things like writing letters about yourself or submitting photos of your family can give you a leg up. You’ll [still] want to make yourself stand out from a financial standpoint, too. Get preapproved, put in a strong offer and be prepared with ways to show you’re responsible, have the funds and are ready to make the commitment.”

Compromise is part of almost any home-buying process. Unless you’re building a new home from the ground up, it’s unlikely anything on the market will check every single box. Which is why Drew suggests determining clear nonnegotiables from the start. “You need to have hard lines on budget, school districts and … size,” he says. “You have to buy a house that supports your lifestyle and doesn’t fight against it. Remember, cosmetic finishes are easier to change than square footage.”

Some people seem to love the idea of fixer-uppers, which can offer great ROI, considering they’re typically more affordable than brand-new properties. However, Jonathan emphasizes the importance of understanding the difference between cosmetic projects and full overhauls. “If the renovations are cosmetic, or projects you can tackle one at a time, that could be worth it for a house with good bones and a great price in the right neighborhood,” he says. “What I don’t recommend is living in a construction zone. If the house needs a full overhaul, stop and consider what that means. Can you afford to live outside of the house while you renovate? Are you OK if it takes significantly longer than quoted to get it done? Are you financially prepared to uncover more problems as you go? Be honest with yourself about whether you can manage that on top of your family, job and other responsibilities.”

By now, Drew and Jonathan can spot a real estate red flag from a mile away — and they want new home buyers to be able to as well. “There are obvious red flags that signal a home hasn’t been kept up well, like a dilapidated roof, water spots and cracked paint, but trust your other senses, too. If it smells musty, for example, that’s not a good sign,” Jonathan says. “Pro tip: If they’re overcompensating with fresh-baked cookies or room fresheners, that could mean they’re hiding something,” Drew adds. “Do your due diligence and try to look at the house through an objective eye.”

You know what they say: Don’t judge a book by its cover. “People can really overvalue cosmetic touches and staging,” Drew says. “The saying is true for a reason: Beauty isn’t skin deep! A trendier-styled but smaller house often gets more attention than a house with a better layout but an outdated design. You have to look beyond paint or decor and visualize how you want to live in a property. Ugly wallpaper can be fixed pretty easily and inexpensively. Don’t sacrifice function for style.”

On the topic of function, Jonathan reminds new home buyers not to overlook the “un-sexy stuff.” “HVAC systems, appliances and good plumbing. Those are the things that are going to cost you a ton if they haven’t been updated or maintained well,” he warns. “Obviously, the goal is to find a Goldilocks between cosmetic and functional characteristics, but make sure you aren’t letting design outweigh the stuff that makes the house tick.”