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

Reblogger Jan Green
Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000

DIY on Real Estate Purchase? Not a good idea!

 

Gail Robinson’s post is a good example of the consumers we are seeing today.  A potential home buyer will make every effort to make themselves educated by doing their own research in advance of meeting with an agent. They have the time and the patience to sit at a computer for countless hours, doing research on what appeals to them. 

 

The problem with this scenario is they aren’t consulting with the professionals first.  Why is this?  Is it the image our industry has somehow portrayed that we aren’t to be trusted?  Or is it as simple as “research is king?” 

 

Either way, home buyers should meet with a lender and a real estate agent before viewing homes so they’ll understand their purchasing power.  Know your numbers before hitting the streets.  Form a good relationship with trusted advisors who will guide you to the path of homeownership! 

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
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Ki Gray
SkiHomes.com LLC - Aspen, CO
SkiHomes.com - the ultimate snowsport home search!

Excellent advice by Gail Robinson. Hope that the buyers faced with these situations get what it is they are wanting and looking for.

Feb 04, 2013 08:12 AM #1
Rainmaker
506,726
Jerry Murphy, CRS, SRES
Long Realty West Valley - Anthem, AZ
Anthem, Phoenix, and Scottsdale AZ Real Estate

It's a situation we've all encountered from time to time as real estate professionals.  Thankfully not all buyers are like this.  Most are realistic. Good post and best of luck to you Jan.

Feb 04, 2013 08:17 AM #2
Rainmaker
1,558,046
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Good re-blog.  Trust me on this, those buyers were love that house, but don't want to pay the price, will be kicking themselves for years to come on their poor decision.  Gail wrote they can obtain a mortgage for this home, but they don't want to.  They will be kicking themselves for years to come . . .

Feb 04, 2013 10:27 AM #3
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Rainmaker
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Jan Green

HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN
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