Why You Shouldn't Look at Homes Outside Your Price Range

Reblogger Lenn Harley
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

OR, WHY YOU SHOULDN'T TRY TO PLAY REAL ESTATE AGENT.

I HAVE NO SYMPATHY!!

This happens when consumers believe that they are smarter than experienced agentsWRONG!!Homes for sale

If they had sought real estate advice from a real estate practitioner, they wouldn't have led themselves into this DEAD END OF PERPETUAL DISAPPOINTMENT.

I suppose the only thing left is creative financing.  This couple needs guidance.  The question is, are they smart enough to seek it or do they just want to lead themselves farther down the road to disappointment.

As you can see, I have no sympathy.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, serving home buyers in Northern Virginia and Maryland.

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Original content by Gail Robinson RES.0772823

I'm working with a lovely young couple.  They did what most buyers do before they sign up with a real estate agent.  They did their research on the Internet and then they went to Open Houses.  They even got a pre-approval letter before coming to me.  They did everything right, except one thing.  They went to an Open House outside their price range.  And, they fell in love with the home.  They asked me to go see it with them today. 

The husband said, this is exactly what we are looking for, except in a different price range.  Uh oh!  The wife is very specific about the location she wants.  It's an excellent location with good resale value.  It has the school system they want.  This ideal home is in that area.  So if we can't go to a less expensive area, how can I help them find a home just like this one for less?  I explained the dilemma to them.

To complicate things, it is a home of amazing quality, craftmanship, and unique charm.  A high end builder built this custom home using the touches he uses on homes twice as expensive.  

I feel bad for them, because they have really fallen in love and now they will feel like they are settling when they purchase their first home, instead of feeling excited about it.  They don't want a starter home and don't plan to move again, so this makes it particularly frustrating.

The lesson learned from this is to figure out your price range early.  Not just what you qualify for in terms of a mortgage  (they could qualify for a loan for this home), but what you should spend on housing given your lifestyle and plans.

 

Fairfield County CT Real Estate 

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Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Lenn.  How true.  Champagne taste with a beer pocket is tough to match up.

Feb 02, 2013 07:49 PM #1
Rainmaker
1,835,879
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

That's a good line - that now no matter what they purchase they will feel like they are settling.  I expect you might not have shown them that house?

Feb 02, 2013 08:06 PM #2
Rainmaker
4,432,093
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I wish buyers will read this post and look at homes that they can afford.

Feb 02, 2013 08:13 PM #3
Rainmaker
2,832,872
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning I have it happen to me all the time.  Once they get the idea of I do know what I'm talking about they come around and we find that place for them. 

Feb 02, 2013 08:33 PM #4
Rainmaker
1,229,910
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

I have rental prosects who want to look at homes not available in their moving timeline and it is a waste of their TIME as they will most possibly not view the home that is perfect for them 

Feb 02, 2013 08:42 PM #5
Rainmaker
2,346,102
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Nope, I have no sympathy for them either, they should have never looked out of their price range.

Feb 02, 2013 08:48 PM #6
Rainmaker
790,023
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS
I agree with Roger; they should have never looked at it...too bad,there is no remedy for this.
Feb 02, 2013 08:50 PM #7
Ambassador
2,736,124
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Conrad.  That's what happens when consumers represent themselves.

Jay.  Only if I knew that there was financing possible.

Gita.  They don't know what they can afford.

James.  Same here.  Give me 15 minutes with them and they will know.

Wallace.  Renters have to be qualified too.

Roger.  Back to basics.  They should never have determined their price range on their own.

Carol.  Sadly, that's often true.  However, if they are serious buyers, they'll come around.

Feb 02, 2013 09:06 PM #8
Rainmaker
1,558,046
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

They can obtain financing for this house, the one they love.  Gail updated a comment and mentioned their Plan B, being:

"I thought you would all like an update on my clients' decision. While they could stretch and probably get a mortgage on this home, it is more than they want to spend on a home given their other financial goals. I suggested to them that we look at homes in need of updating and bring in their relative who is a contractor to give them the "look" that they fell in love with in the other home. e.g. high end kitchen, marble baths.

They don't need to sell their home to buy their next home so they have the luxury of not having to live in the construction as it is going on. We found another area that is less expensive in which to buy a home, so I think this will all work out."

Plan B may just work out for them.  But . . . this will be the home that they will be kicking themselves in the butt for years to come because they didn't buy it.  I know this because I've had too many clients not buy what they really wanted to, and were penny wise, by pound foolish. 

Feb 04, 2013 10:32 AM #9
Ambassador
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Carla.  My experience is that buyers who consider the fixer-upper to save money, but the house but rarely do the fixing up.  5 years later when they want to sell, they are way behind the price curve.

Feb 05, 2013 05:13 AM #10
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