I met with a first time home owner last week, I"ll call her Amy.

Amy was approved for a loan from $130,000-$150,000.  She's more comfortable with the monthly payment at $130,000.  She has a friend who is selling a home and once the home is sold (in this market that could be one month from now, or six months from now), they plan on being roommates.  Of course having a roommate would make the $150,000 payment much more comfortable for Amy. Amy would prefer to be in a single family home vs. a condo in Minneapolis or St. Paul.  Of course, she'll want to be in an area where property appreciation looks promising.

Instead of hurrying and buying a condominium in Minneapolis or St. Paul, I encourged Amy to wait to see if things work out with her friend so she  can more comfortably afford the $150,000 payment.  With that loan amount we could find a single family home that might need some cosmetic work, but will have solid mechanicals which will reduce the chance that she'll have some expensive home repairs to make.  Of course, I told Amy there's a chance interest rates might go up over the next few months which would reduce her buying power, but it makes sense to wait a few months so you can get what you really want and stay there for at least 5 years than to hurry and get something that's just mediocre.

It's easy to be in a hurry when you're buying your first home.  Emotions are running high, and you naturally have a sense of urgency to get moved into your new home.  Don't let a real estate agent hurry you into something unless its something that fits into your overall lifestlye goals for at least the next five years or so.

Happy House Hunting!

 
This post has been included in Minnesota Real Estate News

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Lisa Dunn www.TwinCitySeller.com

Minneapolis, MN

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Edina Realty

Office Phone: (651) 690-8439

Cell Phone: (612) 599-3484

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Lisa Dunn is a Realtor in the Minneapolis St. Paul area who offers some thoughts for your review.


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