1. Buyers getting in way over their head. A young couple with a combined income of – say – $56,000 should never even consider buying a home for $400,000. It doesn’t matter how insane the local market is – it’s crazy to take on that kind of debt, particularly when you’re just starting out and thinking about raising a family.

2. Buyer’s Remorse. People dive in and “sign their life away” before they really scope out the neighborhood, or fully consider what that longer commute will mean. Sure, they may have a great home, but they’re never in it and/or they’re afraid to let the kids outside by themselves.

3. Money Pits. Those little old houses have lots of charm, but what shape is the electrical wiring? Oops. They didn’t get inspections and bought “as is” because it’s such a “good deal.” Maybe not. That dream home can quickly turn into a costly nightmare.