Max Moore

Sep 22, 2025

7 First-Time Homebuyer Mistakes to Avoid in Indianapolis

Avoid common first-time homebuyer mistakes in Indianapolis. Learn how to prep for Indy’s fast market and buy your first home with confidence.

Buyers
Home Buying

Buying in Indy Isn’t Slowing Down

Here’s a stat that might surprise you: as of 2025, the average home in Indianapolis sells in just 15 days. That means by the time you’ve scheduled a second showing, the house could already be under contract. For first-time buyers, that speed can feel overwhelming — but it doesn’t have to be.

If you’re thinking about buying your first home in Indy, the key is preparation. Let’s walk through seven common mistakes first-time buyers make in Indianapolis and how you can avoid them.

1. Skipping Pre-Approval in a Fast Market

Indy homes move quickly — and sellers want serious buyers. Without a mortgage pre-approval letter, your offer is basically invisible in multiple-offer situations.

  • Pre-approval shows sellers you’re ready to buy.

  • It gives you a clear budget, so you don’t waste time shopping out of range.

  • In a city where homes average two weeks on the market, you don’t want to lose your dream home because you weren’t paperwork-ready.

2. Underestimating the True Costs of Buying

The down payment isn’t the only check you’ll be writing. Many first-time buyers forget about:

  • Home inspection ($400–$600 in Indy)

  • Homeowner’s insurance (averaging $1,500–$2,000 annually)

  • Property taxes (Marion County average ~0.9% of assessed value)

  • Closing costs (often 2–5% of loan amount)

If you don’t budget for these, the closing table can hit you with surprise expenses.

3. Falling in Love with the First House You See

Indianapolis has a diverse mix of neighborhoods — from historic Irvington to buzzing Fountain Square. First-timers often get emotionally attached too quickly.

Pro tip: Tour at least 5–7 homes in different neighborhoods before making an offer. This gives you a better feel for pricing, layouts, and resale potential.

4. Overlooking Neighborhood Fit

Your house is important, but location is everything. Many first-time buyers focus on the property and forget about commute times, walkability, or long-term neighborhood growth.

Some questions to ask yourself:

  • Do you want to be close to downtown nightlife or prefer a quieter suburban pocket?

  • How’s the school district if resale value matters?

  • What’s the neighborhood’s appreciation trend? (Example: Fountain Square homes appreciated ~7% year-over-year in 2024.)

5. Ignoring the Inspection Report

When the inspector hands you a 40-page report, it’s tempting to skim. But skipping details could cost you thousands later.

Common Indy inspection red flags:

  • Old furnaces (many homes here still rocking 20+ year units)

  • Basements with moisture issues

  • Outdated electrical panels

Action step: Go over the report with your agent, and don’t be afraid to request seller credits or repairs.

6. Trying to Do It Alone

Yes, you can buy a house without an agent. But should you? Probably not.

A good buyer’s agent:

  • Helps you understand pricing trends in Indy neighborhoods

  • Knows how to structure competitive offers

  • Connects you with trusted lenders and inspectors

If you’re buying your first home, lean on professionals. (We even recommend taking our First-Time Buyer Quiz to see how ready you are.)

7. Forgetting About Long-Term Resale Value

Your first home may not be your forever home. But it can be your first wealth-building step if you buy smart.

Think like an investor:

  • Is the home in a growing area (Broad Ripple, Bates-Hendricks, Garfield Park)?

  • Could you rent it out down the line?

  • Does the layout appeal to a wide range of future buyers?

Buying with resale in mind sets you up for flexibility and equity growth.

Quick Q&A for Indy First-Time Buyers

What’s the average home price in Indianapolis in 2025?

As of early 2025, the median home price in Indianapolis is around $250,000, making it one of the most affordable major metros in the U.S.

How much should I save before buying in Indy?

Aim for at least 3–5% of the home price for a down payment, plus another 2–5% for closing costs and move-in expenses.

Do I need 20% down to buy my first home?

Nope! Many first-time buyers in Indy use FHA loans (as low as 3.5% down) or down payment assistance programs.

Is now a good time to buy in Indianapolis?

With steady population growth and homes selling fast, it’s a competitive but strong market. Buying now means building equity while rents keep climbing.

Wrapping It Up

Buying your first home in Indianapolis is exciting — and a little intimidating. By avoiding these seven mistakes, you’ll set yourself up for a smoother process and a smarter investment.

Ready to buy your first home in Indy? Reach out to Roots Realty Co. and let’s find the right fit for you.

👉 Explore our Buyer Resources for guides, checklists, and tools made for Indy buyers.

Also check out these related reads:

Buying in Indy Isn’t Slowing Down

Here’s a stat that might surprise you: as of 2025, the average home in Indianapolis sells in just 15 days. That means by the time you’ve scheduled a second showing, the house could already be under contract. For first-time buyers, that speed can feel overwhelming — but it doesn’t have to be.

If you’re thinking about buying your first home in Indy, the key is preparation. Let’s walk through seven common mistakes first-time buyers make in Indianapolis and how you can avoid them.

1. Skipping Pre-Approval in a Fast Market

Indy homes move quickly — and sellers want serious buyers. Without a mortgage pre-approval letter, your offer is basically invisible in multiple-offer situations.

  • Pre-approval shows sellers you’re ready to buy.

  • It gives you a clear budget, so you don’t waste time shopping out of range.

  • In a city where homes average two weeks on the market, you don’t want to lose your dream home because you weren’t paperwork-ready.

2. Underestimating the True Costs of Buying

The down payment isn’t the only check you’ll be writing. Many first-time buyers forget about:

  • Home inspection ($400–$600 in Indy)

  • Homeowner’s insurance (averaging $1,500–$2,000 annually)

  • Property taxes (Marion County average ~0.9% of assessed value)

  • Closing costs (often 2–5% of loan amount)

If you don’t budget for these, the closing table can hit you with surprise expenses.

3. Falling in Love with the First House You See

Indianapolis has a diverse mix of neighborhoods — from historic Irvington to buzzing Fountain Square. First-timers often get emotionally attached too quickly.

Pro tip: Tour at least 5–7 homes in different neighborhoods before making an offer. This gives you a better feel for pricing, layouts, and resale potential.

4. Overlooking Neighborhood Fit

Your house is important, but location is everything. Many first-time buyers focus on the property and forget about commute times, walkability, or long-term neighborhood growth.

Some questions to ask yourself:

  • Do you want to be close to downtown nightlife or prefer a quieter suburban pocket?

  • How’s the school district if resale value matters?

  • What’s the neighborhood’s appreciation trend? (Example: Fountain Square homes appreciated ~7% year-over-year in 2024.)

5. Ignoring the Inspection Report

When the inspector hands you a 40-page report, it’s tempting to skim. But skipping details could cost you thousands later.

Common Indy inspection red flags:

  • Old furnaces (many homes here still rocking 20+ year units)

  • Basements with moisture issues

  • Outdated electrical panels

Action step: Go over the report with your agent, and don’t be afraid to request seller credits or repairs.

6. Trying to Do It Alone

Yes, you can buy a house without an agent. But should you? Probably not.

A good buyer’s agent:

  • Helps you understand pricing trends in Indy neighborhoods

  • Knows how to structure competitive offers

  • Connects you with trusted lenders and inspectors

If you’re buying your first home, lean on professionals. (We even recommend taking our First-Time Buyer Quiz to see how ready you are.)

7. Forgetting About Long-Term Resale Value

Your first home may not be your forever home. But it can be your first wealth-building step if you buy smart.

Think like an investor:

  • Is the home in a growing area (Broad Ripple, Bates-Hendricks, Garfield Park)?

  • Could you rent it out down the line?

  • Does the layout appeal to a wide range of future buyers?

Buying with resale in mind sets you up for flexibility and equity growth.

Quick Q&A for Indy First-Time Buyers

What’s the average home price in Indianapolis in 2025?

As of early 2025, the median home price in Indianapolis is around $250,000, making it one of the most affordable major metros in the U.S.

How much should I save before buying in Indy?

Aim for at least 3–5% of the home price for a down payment, plus another 2–5% for closing costs and move-in expenses.

Do I need 20% down to buy my first home?

Nope! Many first-time buyers in Indy use FHA loans (as low as 3.5% down) or down payment assistance programs.

Is now a good time to buy in Indianapolis?

With steady population growth and homes selling fast, it’s a competitive but strong market. Buying now means building equity while rents keep climbing.

Wrapping It Up

Buying your first home in Indianapolis is exciting — and a little intimidating. By avoiding these seven mistakes, you’ll set yourself up for a smoother process and a smarter investment.

Ready to buy your first home in Indy? Reach out to Roots Realty Co. and let’s find the right fit for you.

👉 Explore our Buyer Resources for guides, checklists, and tools made for Indy buyers.

Also check out these related reads:

Buying in Indy Isn’t Slowing Down

Here’s a stat that might surprise you: as of 2025, the average home in Indianapolis sells in just 15 days. That means by the time you’ve scheduled a second showing, the house could already be under contract. For first-time buyers, that speed can feel overwhelming — but it doesn’t have to be.

If you’re thinking about buying your first home in Indy, the key is preparation. Let’s walk through seven common mistakes first-time buyers make in Indianapolis and how you can avoid them.

1. Skipping Pre-Approval in a Fast Market

Indy homes move quickly — and sellers want serious buyers. Without a mortgage pre-approval letter, your offer is basically invisible in multiple-offer situations.

  • Pre-approval shows sellers you’re ready to buy.

  • It gives you a clear budget, so you don’t waste time shopping out of range.

  • In a city where homes average two weeks on the market, you don’t want to lose your dream home because you weren’t paperwork-ready.

2. Underestimating the True Costs of Buying

The down payment isn’t the only check you’ll be writing. Many first-time buyers forget about:

  • Home inspection ($400–$600 in Indy)

  • Homeowner’s insurance (averaging $1,500–$2,000 annually)

  • Property taxes (Marion County average ~0.9% of assessed value)

  • Closing costs (often 2–5% of loan amount)

If you don’t budget for these, the closing table can hit you with surprise expenses.

3. Falling in Love with the First House You See

Indianapolis has a diverse mix of neighborhoods — from historic Irvington to buzzing Fountain Square. First-timers often get emotionally attached too quickly.

Pro tip: Tour at least 5–7 homes in different neighborhoods before making an offer. This gives you a better feel for pricing, layouts, and resale potential.

4. Overlooking Neighborhood Fit

Your house is important, but location is everything. Many first-time buyers focus on the property and forget about commute times, walkability, or long-term neighborhood growth.

Some questions to ask yourself:

  • Do you want to be close to downtown nightlife or prefer a quieter suburban pocket?

  • How’s the school district if resale value matters?

  • What’s the neighborhood’s appreciation trend? (Example: Fountain Square homes appreciated ~7% year-over-year in 2024.)

5. Ignoring the Inspection Report

When the inspector hands you a 40-page report, it’s tempting to skim. But skipping details could cost you thousands later.

Common Indy inspection red flags:

  • Old furnaces (many homes here still rocking 20+ year units)

  • Basements with moisture issues

  • Outdated electrical panels

Action step: Go over the report with your agent, and don’t be afraid to request seller credits or repairs.

6. Trying to Do It Alone

Yes, you can buy a house without an agent. But should you? Probably not.

A good buyer’s agent:

  • Helps you understand pricing trends in Indy neighborhoods

  • Knows how to structure competitive offers

  • Connects you with trusted lenders and inspectors

If you’re buying your first home, lean on professionals. (We even recommend taking our First-Time Buyer Quiz to see how ready you are.)

7. Forgetting About Long-Term Resale Value

Your first home may not be your forever home. But it can be your first wealth-building step if you buy smart.

Think like an investor:

  • Is the home in a growing area (Broad Ripple, Bates-Hendricks, Garfield Park)?

  • Could you rent it out down the line?

  • Does the layout appeal to a wide range of future buyers?

Buying with resale in mind sets you up for flexibility and equity growth.

Quick Q&A for Indy First-Time Buyers

What’s the average home price in Indianapolis in 2025?

As of early 2025, the median home price in Indianapolis is around $250,000, making it one of the most affordable major metros in the U.S.

How much should I save before buying in Indy?

Aim for at least 3–5% of the home price for a down payment, plus another 2–5% for closing costs and move-in expenses.

Do I need 20% down to buy my first home?

Nope! Many first-time buyers in Indy use FHA loans (as low as 3.5% down) or down payment assistance programs.

Is now a good time to buy in Indianapolis?

With steady population growth and homes selling fast, it’s a competitive but strong market. Buying now means building equity while rents keep climbing.

Wrapping It Up

Buying your first home in Indianapolis is exciting — and a little intimidating. By avoiding these seven mistakes, you’ll set yourself up for a smoother process and a smarter investment.

Ready to buy your first home in Indy? Reach out to Roots Realty Co. and let’s find the right fit for you.

👉 Explore our Buyer Resources for guides, checklists, and tools made for Indy buyers.

Also check out these related reads:

Buying in Indy Isn’t Slowing Down

Here’s a stat that might surprise you: as of 2025, the average home in Indianapolis sells in just 15 days. That means by the time you’ve scheduled a second showing, the house could already be under contract. For first-time buyers, that speed can feel overwhelming — but it doesn’t have to be.

If you’re thinking about buying your first home in Indy, the key is preparation. Let’s walk through seven common mistakes first-time buyers make in Indianapolis and how you can avoid them.

1. Skipping Pre-Approval in a Fast Market

Indy homes move quickly — and sellers want serious buyers. Without a mortgage pre-approval letter, your offer is basically invisible in multiple-offer situations.

  • Pre-approval shows sellers you’re ready to buy.

  • It gives you a clear budget, so you don’t waste time shopping out of range.

  • In a city where homes average two weeks on the market, you don’t want to lose your dream home because you weren’t paperwork-ready.

2. Underestimating the True Costs of Buying

The down payment isn’t the only check you’ll be writing. Many first-time buyers forget about:

  • Home inspection ($400–$600 in Indy)

  • Homeowner’s insurance (averaging $1,500–$2,000 annually)

  • Property taxes (Marion County average ~0.9% of assessed value)

  • Closing costs (often 2–5% of loan amount)

If you don’t budget for these, the closing table can hit you with surprise expenses.

3. Falling in Love with the First House You See

Indianapolis has a diverse mix of neighborhoods — from historic Irvington to buzzing Fountain Square. First-timers often get emotionally attached too quickly.

Pro tip: Tour at least 5–7 homes in different neighborhoods before making an offer. This gives you a better feel for pricing, layouts, and resale potential.

4. Overlooking Neighborhood Fit

Your house is important, but location is everything. Many first-time buyers focus on the property and forget about commute times, walkability, or long-term neighborhood growth.

Some questions to ask yourself:

  • Do you want to be close to downtown nightlife or prefer a quieter suburban pocket?

  • How’s the school district if resale value matters?

  • What’s the neighborhood’s appreciation trend? (Example: Fountain Square homes appreciated ~7% year-over-year in 2024.)

5. Ignoring the Inspection Report

When the inspector hands you a 40-page report, it’s tempting to skim. But skipping details could cost you thousands later.

Common Indy inspection red flags:

  • Old furnaces (many homes here still rocking 20+ year units)

  • Basements with moisture issues

  • Outdated electrical panels

Action step: Go over the report with your agent, and don’t be afraid to request seller credits or repairs.

6. Trying to Do It Alone

Yes, you can buy a house without an agent. But should you? Probably not.

A good buyer’s agent:

  • Helps you understand pricing trends in Indy neighborhoods

  • Knows how to structure competitive offers

  • Connects you with trusted lenders and inspectors

If you’re buying your first home, lean on professionals. (We even recommend taking our First-Time Buyer Quiz to see how ready you are.)

7. Forgetting About Long-Term Resale Value

Your first home may not be your forever home. But it can be your first wealth-building step if you buy smart.

Think like an investor:

  • Is the home in a growing area (Broad Ripple, Bates-Hendricks, Garfield Park)?

  • Could you rent it out down the line?

  • Does the layout appeal to a wide range of future buyers?

Buying with resale in mind sets you up for flexibility and equity growth.

Quick Q&A for Indy First-Time Buyers

What’s the average home price in Indianapolis in 2025?

As of early 2025, the median home price in Indianapolis is around $250,000, making it one of the most affordable major metros in the U.S.

How much should I save before buying in Indy?

Aim for at least 3–5% of the home price for a down payment, plus another 2–5% for closing costs and move-in expenses.

Do I need 20% down to buy my first home?

Nope! Many first-time buyers in Indy use FHA loans (as low as 3.5% down) or down payment assistance programs.

Is now a good time to buy in Indianapolis?

With steady population growth and homes selling fast, it’s a competitive but strong market. Buying now means building equity while rents keep climbing.

Wrapping It Up

Buying your first home in Indianapolis is exciting — and a little intimidating. By avoiding these seven mistakes, you’ll set yourself up for a smoother process and a smarter investment.

Ready to buy your first home in Indy? Reach out to Roots Realty Co. and let’s find the right fit for you.

👉 Explore our Buyer Resources for guides, checklists, and tools made for Indy buyers.

Also check out these related reads:

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Be the first to know about off-market listings and smart buying tips.

Free. Indy-focused insights for first-time and savvy buyers — straight to your inbox.

Roots Realty newsletter

Be the first to know about off-market listings and smart buying tips.

Free. Indy-focused insights for first-time and savvy buyers — straight to your inbox.

Roots Realty newsletter

Be the first to know about off-market listings and smart buying tips.

Free. Indy-focused insights for first-time and savvy buyers — straight to your inbox.

Free resources

Get our free buyer tools and start your Indy home journey right.

Blueprints, checklists, and local insights built for first-time and smart buyers.

Free resources

Get our free buyer tools and start your Indy home journey right.

Blueprints, checklists, and local insights built for first-time and smart buyers.

Free resources

Get our free buyer tools and start your Indy home journey right.

Blueprints, checklists, and local insights built for first-time and smart buyers.

Free resources

Get our free buyer tools and start your Indy home journey right.

Blueprints, checklists, and local insights built for first-time and smart buyers.