First, let me share some exciting personal news, my fiancé and I are in the market for our first home! Now with that said, I can not only relate on that level with home buyers, but after representing buyers in this outrageous market where homes are going for more than asking price- sometimes reaching over $20,000 more- I can surely understand the disappointment and discouragement many first time home-buyers are feeling as they look into entering the real estate market. With the market heating up, increasing prices and competition on homes, especially in popular neighborhoods, it is not time to hang your head and throw in the towel... Your home just hasn't hit the market yet!
After making offers on homes that received 10 or more within hours of listing, and not having them accepted as the competitors were fierce and offered $10-20 grand over the "sticker price", I could see how defeated my clients were. I mean, who could blame them? You picture your life taking place there as you walk through the home for the first time, you dream of the possibilities for you to make it your own and add your own personal touch to it. The thrill and excitement of putting yourself on the line and making an offer sends adrenaline rushing through you like never before, but it's the idea that you can see yourself making this property your home... the place you will make memories with friends, family and loved ones, be comforted by after a long day at work, that will provide relief after a stressful day, and will turn into your personal sanctuary. To have that ripped right out from under you, leaves many feeling deflated, devastated, and concerned that there will never be a house that could compare. Oh, contraire! After giving them a much needed pep-talk, we were out on the real estate scene later that week in a new area nearby to view new listings, and what do you know? From the moment they stepped into the first home on the list, they knew it was the one, even better than the last, and it happened to tick off more on their criteria checklist for under their budget. Now, how do you beat that? Giving up was one option, but moving forward was the choice that awarded them with all they were looking for and more.
There are many things in life that will elicit great emotion from you, and buying a home is certainly on the top of the list. Telling a client to remove their feelings from the process is like asking a doctor to complete brain surgery while blindfolded and without their sight. (extreme, maybe? But you get the picture) It's impossible... The gut feeling and intuition a buyer feels when walking through homes can make a deal or break it. If it doesn't sit right with them, well then it isn't the right fit. This is one of the most important decisions we will make in our lives and will greatly affect the next 5-10 years of our lives as we build equity in our homes. As we invest our hard-earned money into the places we will call home for a great deal of time, we better make sure we absolutely love it; at least I know that I could never make an offer on a home that my heart wasn't set on, however risky and dangerous that is for my emotions, I really couldn't image it any other way. I encourage all of my buyers to keep their hearts in it, when it is broken by a deal falling through or someone else putting their claim on it first, it's okay to feel for the loss- but, then move on and find better opportunities. When one door closes, another opens. (Quite literally). We are only half way through the "real estate season" and much more is believed to be on it's way.
The last thing you want to do is sign a lease during the next few months of the busy season, and find yourself stuck until next year, halfway through the season again; this will only limit your chances of getting into the home you've dreamt of for so long. My advice: sign a 1-3 month lease if you are already in the process of looking and although it will be more expensive for the short time you're there, you will be ready to make an offer on the next home that comes up that serves all of your needs, and when/if you get it- then you're not doubling up on rent/mortgage payments (which for us first-timers, we don't really even have that option to begin with!)
In our case, our lease is up in January and we have already started the process of loan shopping and getting pre-approval so we know how much we need to save for a down payment, what price range we are able to look in, and what we can do to improve our credit over the next 3-4 months. I think for a lot of first-time home buyers, things happen so quickly that the process can become overwhelming instead of house hunting keeping the original thrill that it should have. That excitement should never be lost, and as a real estate agent I do whatever I can to keep my clients upbeat, on their toes, and positive about the entire process. There are so many times you can be let down that you definitely need a cheerleader in your corner to boost your esteem and motivate you to keep going! During our loan process, we were hit with the unfortunate news that we qualified for less of a home than what we were originally hoping for, but guaranteed we won't let that stop us. As buyers, it is best to shop around and get a quote/ pre-approval from multiple lenders and choose one that you feel has the most to offer. Don't limit yourselves. Options are always important to have in the scheme of things.
Words for the wise: get yourself representation and find a buyer's agent that is in it for your best interest! A common misconception people have about the real estate industry is that it will cost an arm and a leg to hire a buyer's agent to represent you in the home buying process, however, let it be known that normally the seller's pay the buyer's agent commission. Therefore, the only thing that comes from your pocket to your agent, is normally a brokerage fee that can range from $199-$350 just depending on who you choose. Our's happens to be on the lowest end of the spectrum. Also, if it had cost an arm and a leg, would you not be willing to pay for expert advice from a professional that specializes in real estate as you make one of the largest purchases of your life? On the listing side: many people attempt to represent themselves and market their homes, but they don't reach nearly half the amount of people that a professional can. Many times people lose their target market within the first couple weeks to a month just by overpricing their home, as to the seller it is worth much more sometimes than what the market says it is. They lose valuable time on the market since many people will cross it off their list as it costs more than other comparable's in the area or buyers may come to the conclusion that for what they are asking, the buyer could get much more out of a home for the same price.
Whether you are buying or selling your home, hiring a Realtor will be your best move. My goal as a realtor representing my clients is to get them the absolute best deal based on statistics in the area as well as protecting their best interest when it comes to the overall condition of the home. The last thing I would want is for my client to waive their home inspection and end up finding out after closing that the foundation needs fixed, or other existing problems that could have been fixed by the seller are now costing them and now they don't have the chance to walk away like they could have during the remedy period had they gotten an inspection. As an agent, my job is to stay current on what is happening in the market (which varies from neighborhood to neighborhood at times) so that I can best assist my clients in making a smart investment. I put my heart into my career as a Realtor, because I know that the people I represent have their entire hearts in the process as well. Without passion, I wouldn't be doing my clients justice. Plus, it's unavoidable... I absolutely love what I do!!
To sum it up; take that discouragement you feel and turn it into positive, forward momentum in your home search- like the wise character Dori says, "just keep swimming, just keep swimming"... You may feel hopeless in the middle of an ocean of "in-contract" homes, but if you stick with it the reward is priceless. Your new home awaits, it could be just around the corner! With the right realtor, a lot of heart and passion, and a good amount of patience you can confront the seller's market head-on and come out on top. If you or anyone you know is looking to buy or sell a home in the central ohio area, feel free to contact me at anytime by cell/text/or email- it never hurts to be informed!!
[Readers: what are the top 3 qualities you look for in your Real Estate Agent? and if you have bought a home or are currently in the process, what are some things you wish you had known about home-buying/selling? I would love to hear your answers!!]
Posts
