Why So Many First Home Buyers Miss Out (And How You Can Avoid It)

Buying your first home in Australia should feel exciting not heartbreaking. But for many first-home buyers, the journey starts with disappointment.

According to recent data, nearly 61% of first-home buyers miss out on properties they seriously considered. That’s a huge number… more than half!

So why is this happening? Let’s break it down.

The Biggest Reasons First-Home Buyers Miss Out

Competition is fierce
Around 33% of buyers are outbid, especially in hot markets where properties sell within days.

Unconditional offers win
Roughly 23% lose out because another buyer came in with an unconditional offer. Sellers love certainty – and that’s hard to compete with if you’re not prepared.

Pre-approvals take too long
Without your pre-approval in place, you’re already a step behind. In fast-moving markets, that delay can mean missing out entirely.

Properties are selling faster
Many homes are on the market for fewer days, leaving little room for hesitation or paperwork delays.

The Deposit Dilemma

Even when first-home buyers do secure a property, the story isn’t always smooth sailing. The same report revealed that 70% purchase with less than a 20% deposit.

That can mean paying thousands extra in Lenders Mortgage Insurance (LMI) money that doesn’t build equity but simply protects the lender.

How to Give Yourself an Edge

Here’s the good news: missing out isn’t inevitable. With the right preparation, you can put yourself in a much stronger position.

✔️ Get pre-approval early

Don’t wait until you find the dream home. Having this in place makes you a more attractive buyer and helps you act fast.

✔️ Work with a broker

As brokers, we have access to a wide range of lenders, and we’ll help you understand deposit options, grants, and ways to reduce or avoid LMI.

✔️ Know your strategy

Auctions and private sales work differently. Having guidance on how to approach each situation gives you confidence and an advantage.

Ready to Buy Smarter?

At Two Birds One Loan, we’re here to make sure you don’t end up in the 61% who miss out. Whether it’s your first home, your next home, or an investment, we’ll guide you through the process so you’re ready to make the move when it matters most.

Book a call with the Birds today let’s get your strategy sorted, so your dream home doesn’t slip away.