Top 5 Mistakes First-Time Home Buyers Make in Spearfish, Sturgis & Rapid City

Buying your first home in the Black Hills is exciting — but it can also be expensive if you don’t know what to avoid.

Whether you’re looking in Spearfish, Sturgis, or Rapid City, I see the same first-time buyer mistakes over and over again. Any one of them can cost you the home you want, delay your plans, or cost you thousands of dollars.

To help you avoid that, I recently released a full video breaking down the Top 5 Mistakes First-Time Home Buyers Make in the Black Hills, along with exactly what to do instead.

👉 Watch the full video here:
Top 5 Mistakes First-Time Home Buyers Make in Spearfish, Sturgis & Rapid City

Below is a breakdown of those five mistakes so you can start preparing the right way.

Mistake #1: Not Working With a Local Lender

One of the biggest mistakes first-time buyers make is using an online lender or a lender who doesn’t truly understand how real estate works in the Black Hills.

In competitive markets like Spearfish, Sturgis, and Rapid City, sellers don’t just look at price — they look at risk. A lender who is hard to reach, slow to respond, or unfamiliar with local timelines can weaken an otherwise strong offer.

Local lenders bring three major advantages:

• Faster communication (even nights and weekends)

• Familiarity with local appraisers and underwriting expectations

• More confidence for sellers and listing agents

What to do instead:
Work with a reputable local lender who agents recognize and trust. In many cases, the lender can be the difference between winning or losing a home.

Mistake #2: Waiting for the “Perfect” Home

The perfect home doesn’t exist.

If a house checks about 90% of your boxes, that’s usually as good as it gets in the real world. Every home is a tradeoff, and waiting for perfection often means missing solid opportunities — or watching prices continue to climb.

Most buyers don’t realize that the “perfect” home is built over time. You buy the right foundation, then make improvements as you live there.

What to do instead:
Split your wish list into:

• Non-negotiables (location, layout, bedrooms, commute)

• Preferences (finishes, paint colors, landscaping)

This shift helps you buy with confidence instead of endlessly waiting.

Mistake #3: Thinking Pre-Qualified Means Ready

Pre-qualification and pre-approval are not the same thing.

A pre-qualification is often based on what you say. A pre-approval is based on what you can prove. In today’s market, sellers and listing agents want to know that a buyer can actually close.

Strong pre-approvals — especially from local lenders — signal confidence and reduce risk.

What to do instead:
Ask your lender:

“Are we fully underwritten yet, or what’s still missing?”

If they can’t clearly answer, you may not be as ready as you think.

Mistake #4: Underestimating Closing Costs

Many first-time buyers save for a down payment and forget about closing costs.

Closing costs can include:

• Lender fees

• Title and escrow fees

• Appraisal and inspection costs

• Prepaid insurance and taxes

• Mortgage insurance, depending on the loan

When buyers underestimate these costs, they often get blindsided right before closing.

What to do instead:
Ask for a realistic cash-to-close estimate, not a best-case scenario. When you understand the full picture early, you can structure offers more strategically — including potential seller concessions.

Mistake #5: Ignoring Resale Value

Most first-time buyers say, “I’m going to live here forever.”

Most don’t.

Life changes, and resale matters — even if you plan to stay for several years. In the Black Hills, resale value is influenced by things like:

• Location and convenience

• Winter access and drivability

• Functional layouts

• Neighborhood reputation

• Lot characteristics

What to do instead:
Ask yourself:

“Would the average buyer still love this home in five years?”

If the answer is yes, you’re usually in a strong position.

Want the Full Breakdown + Free Checklist?

This blog covers the highlights, but the full video goes deeper with real-world examples from Spearfish, Sturgis, and Rapid City.

🎥 Watch the full YouTube video here:
👉 https://youtu.be/tlzkZ97zovI

📋 You can also get my FREE First-Time Home Buyer Checklist, which includes:

• A step-by-step buying game plan

• Common pitfalls to avoid

• Our top 3 trusted local lenders in the Black Hills

💬 Comment “FIRST” on the video or reach out directly, and I’ll send it to you.

If you’re planning to buy in the next 3–12 months, my team and I would be happy to help you build a smart strategy and avoid expensive rookie mistakes.