Special offer

I Want a $500,000 House for $300,000

By
Industry Observer with Swanepoel T3 Group

People sometimes have a hard time deciding what they want in a house.

“I want a $500,000 house for $300,000″ said the buyer after the fifth trip out.  Hmmm…at each house we have judged and debated the rooms, layout, paint colors, features and location. One house is too big, the next too small, another needs a new roof or major updates to the kitchen and baths. Some are too far from work while others are on busy streets.

After spending many, many hours online and a fair number of hours out looking, this buyer seems no closer to finding a house to buy in the western suburbs of Chicago, despite the fact that we have so many lovely St. Charles IL homes for sale, not to mention all the great homes in Geneva and Batavia, IL.

And now I know why. On the one hand, these folks want a beautiful home in a great school district to raise their young family. They want mature trees and a fenced yard and room for a play set. But they haven’t quite moved past the shine and gloss of their upscale city condo with it’s granite counter tops and stainless appliances.

And in addition to the “perfect house” these folks finally told me that they want to “get a deal”. They want a $500,000 house for $300,000.

“Getting a deal” is always relative, isn’t it?  Virtually every house we’ve looked at is a great deal! Many of these house would have been in the $500,000s in 2005. But the drop in values isn’t consistent across neighborhoods and the best investment on paper might not be the prettiest or cleanest or most updated.

No matter how much money someone has  to spend on a house, the decision will always involve trade-offs. I’ve sold multi-million dollar estates to people who were dissatisfied with their decision and $200,000 condos to people who were so happy they cried at the closing. Happiness with a decision in choosing a house seems to be relative to the clarity of the goals.

A great long-term financial investment might be a different decision from the home someone wants their new baby to take her first steps in. Maybe we can find both….but getting the goals lined up is the most important step.

I list and sell homes in the western suburbs of Chicago, including the communities of St. Charles, Geneva and Batavia. If you would like to talk about buying or selling a home go to my website give me a call at (630)945-7935.

Lisa Dunham
Alexandria, VA
Associate Broker, Alexandria Virginia Real Estate

When it comes to making a selection, every buyer must compromise.  The big three compromises in most areas are price, location, and square footage.  Once your buyers come to terms with this, I am sure they will find a home that works for them. Best of luck to you!

Aug 14, 2011 04:45 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Leslie,

I deal with it every day, and it is very exhausting. You like the condo, you like the price. What if it was sold 5 years ago for three times the money, would it change anyghint with the unit? Or if it was sold for $10K less, what difference does it make.

It  is today, not yesterday, not tomorrow

Aug 14, 2011 04:46 PM
Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

I think, bottom line, once a buyer is pre-approved, that should determine their search criteria.  People can want what they want, but their budget is going to determine what they end up getting.

Aug 14, 2011 04:48 PM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

This type of buyer generally makes me want to scream.  I've had a SLEW of them this year and none of them bought. They wanted a pipe dream not a home and thought they coul steal it.  Makes wonder if I will EVER sell another house.

Aug 14, 2011 04:57 PM
Ted J. Macy
Top Agents Atlanta Metro - Milton, GA

I guess buyers are the same all over, here in Atlanta, we have some great homes for $250K that use to be great homes at $600K. A contractor told me recently that his friend had found a great deal on a $800K home for only $400K, the contractor said he found on great deal on a $400K home for $400K.

I know you young couple will find the "perfect Home" for the perfect price, one day and you will be their Realtor.

 

Aug 14, 2011 05:09 PM
Leslie Ebersole
Swanepoel T3 Group - Saint Charles, IL
I help brokers build businesses they love.

Thank you JANE PETERS for catching the backwards title!

 

Aug 14, 2011 05:15 PM
Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

Good Evening Leslie, getting a deal is relative and the buyers need to realize it.  Great post for the home buyer of todat.

Aug 14, 2011 05:15 PM
Marilyn Boudreaux
Marilyn Boudreaux, Century 21 Bono Realty - Lake Charles, LA
Lake Charles LA Century 21 Realtor

that drives me crazy because buyers usually want to look at higher price homes they can't afford and I have to explain to them you won't get all the whistle and bells at a lower price.  You can't fix dumb if $300,000 is their max dont waste time looking at much higher than that

Aug 14, 2011 05:15 PM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Expectations are one thing . . . and the reality in real estate may be another.  Once an owner responded to a low-ball offer by asking if the buyers wanted an all expense round-trip 5 day vacation in Hawaii tossed in as well.

Aug 14, 2011 05:31 PM
Nancy Conner
Olympia, WA
Olympia/Thurston County WA
Hopefully once they said they want a $500,000 house for $300,000 they also realized how unrealistic that is. There are always, always tradeoffs to make - even when you build a custom home.
Aug 14, 2011 06:00 PM
Ruby Lee Sweeting
Darville Wong Associates Realty Bahamas
Your Bahamas Agent for Relocations & Second Homes

Getting a deal is one thing, but $300k for a $500k property would be highway robbery! Great Blog.

Aug 14, 2011 06:40 PM
Leslie Ebersole
Swanepoel T3 Group - Saint Charles, IL
I help brokers build businesses they love.

Ruby Lee: everyone wants a deal!

Nancy: nope, he's sticking to it. He likes the sound of it.

Carla: and some buyers would expect those tickets to be first class!

Marilyn: that's exactly what I'm trying to get them to see!

Dan: thank you!

 

Aug 15, 2011 03:50 AM
Leslie Ebersole
Swanepoel T3 Group - Saint Charles, IL
I help brokers build businesses they love.

Ted: that's hilarious and so true!

Ruthmarie: all those buyers and sellers who "don't need" to do something....sigh....

Jane: absolutely, thanks!

Jon: that's it! What someone else paid for a house five years ago should be irrelevant.

Lisa: Eventually....!

 

Aug 15, 2011 03:57 AM
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

Leslie - Time to let these buyers go.  Tell them you have the perfect agent for them to work with who is willing to look for that needle in a haystack, then find a newbie who will take your buyer and take your referral fee. (if they ever do actually buy).

Aug 15, 2011 05:30 PM
Robin Rogers
Robin Rogers, Silverbridge Realty, San Antonio, Texas - San Antonio, TX
CRS, TRC, MRP - Real Estate Investment Adviser

Excellent reminder, Leslie, to help home buyers get their priorities listed and keep them focused on them. Not even a bargain home is going to make them happy in the long run if it doesn't meet their needs.

Cheers,

Robin

Aug 19, 2011 11:52 AM