If you’ve been house hunting for more than a few months, you might ask yourself: Which is more important, getting a deal or getting a house? And what’s holding you back from actually buying one? Over 700 people called me last year wanting a “deal” on a house. Most of them never followed through are probably still out there hunting for the absolute lowest price. Actually, only one person in any given area at any given time can get the lowest price. Everything after that will be higher.
We all want a great deal on everything we buy. Nobody likes to board a plane only to discover that everyone else paid a lower price for the same ticket to the same destination.
But here’s the difference. Houses are unique. Even in new home developments, the amenities, elevation and location are all different. Resale homes vary even more, as subsequent homeowners add personalized improvements and upgrades.
Over the years I’ve encountered some resistance from very nice people who really do want to buy, but something keeps holding them back. If this sounds like you or someone you know, take heart-- we all do a little avoidance sometimes, especially when it comes to making big commitments and decisions. And that’s exactly what a home purchase is.
If logically you know that you really do want a home, and emotionally you feel excited imagining it, then you probably only need a gentle nudge over the finish line and into a house. Help is on the way!
Here are 5 frequent stumbling blocks that stop buyers from buying, and some thought-provoking questions designed to inspire action. Be honest with yourself and really think about these questions-- they can help you accomplish what you’ve set out to do.
1. Do you want a deal or do you want a house? This one’s worth repeating because numbers are the #1 excuse for not buying. Does it really matter what $ amount a house reverted to the bank for? Or what it sold for 3 years ago? Do you really care what the last person originally purchased it for? What does that have to do with you? Is 30% below peak enough? If it were 40% off, would you really take action? Exactly what % will really launch you into action? How will you feel when someone you know snaps up a great house at 30% below peak and later you end up paying more? You can’t change the market, or what other buyers can afford to pay.
2. “I know I’m picky, but…” If you’ve been saying that, stop. Your criteria is either realistic or it’s not. If you like everything about a house except ______ (fill in the blank), is it realistic that you can find a house in that neighborhood for your price without that issue? Do you need to move your search to a different area? Do you find that with each house, there’s always something that stops you from buying? Do you expect it to be “perfect”-- and is that really reasonable? Can you modify your expectations to include only the things you can control? You can always change the house, but you can’t change the neighborhood.
3. Are you insisting on sticking with a “comfortable” monthly payment? Nobody is advocating that you go in over your head, but when you bought your last car, did you have to stretch a bit over your comfort zone? What about your last purchase on e-bay? If what you were bidding on wasn’t available for the low price you wanted, and there were other bidders willing to pay more, did you go a bit higher? Find out the facts upfront--ask your CPA about tax benefits and deductions available to homeowners. Talk with your lender and get payment figures in graduated increments, i.e. how much more would it cost per month if you had to pay $1000 more, $2000 more, etc. What would it take to afford what you’d really like? Are we talking $10 more a month, or $100 more? In the long run, would it be worth giving up a few lattes each week to own your own home?
4. Are you expecting this home to be your “forever” home? That’s a huge weight to put on any decision. Is it that you dread packing so much that you never want to move again? Do you really expect everything about your life to remain the same? You can try to plan ahead, but things do change. Seniors go through this all the time; they want to make their “last move” so they want it just perfect. That’s a tall order! When they were younger, they didn’t slap on so many requirements because they knew that if the house got too small or too big, they could always move.
5. Are you buying this house for something/someone other than you? And are you resenting it? I work with lots of RVers, and this is a common dilemma. As much as they like their rigs, the homes and neighborhoods available to them are so limited, they feel like they are buying a house for their RV. Same thing happens for people who feel obligated to provide space for extended family members, either now or in the future.
What’s the worst thing that could happen? This is a great question to ask for any decision you’re about to make. Let’s say you pick a house with just one thing “wrong” with it. Is it seriously that bad? What are the long term ramifications? Is it something you can change? I’ve never liked the fact that I can’t access my backyard from the main part of my house. But for 19 years I’ve enjoyed everything else about it, so I’m willing to put up with that one thing…and actually I could change it if I really wanted to. It helps to weigh the plusses and minuses.
The best way to combat fear is to take action. Happy house- buying!
Do You Want a Deal or a House? ©2009 Barb Fischer San Diego
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