I met with some wonderful new clients last week. They’re excited, motivated first time buyers, I feel like I could have pushed them into writing a contract if I directed their excitement and got them involved in the art of the deal.
But, something told me they weren’t ready. They were kind of all over the place with their motivations to buy, wanting to create an investment portfolio, make a lot of money of fixing up a place, finding a neighborhood where they’d like to have a family, maybe rent and hold a property. We found a property that fit all of their criteria. We parted and I said “How about you take some time to think about it before we do anything. If I don’t hear from you by next Wednesday, I’ll reach out and see where you are. Keep in mind this property may not be available then, but we can find another one.”
I believe it’s important to give people some space to sort out their thoughts, especially regarding such a big decision.
The next day they sent me excellent questions about how to create a real estate portfolio and what to expect from the process. A few items that I pointed out to them, which helped them reach their final decision:
- Are you looking for a home or an investment? They’re two different things. You can have an eye for investing in a home you love and want to live in, but the approach to each goal is a bit different.
- Check your budget. Even though you can afford a house, will you be sacrificing other things that are important to you like travel, dining out, entertainment, that hot pair of must-have boots, or latest technology gadget?
- Do not set yourself up for failure financially or emotionally. Many people think, it’ll be no problem to not eat out, it’ll save us $500 month easy. But then who’s gonna cook every day? Do you want to be the sandwich packer? Is this new lifestyle going to create strife in your partnership or marriage?
Yes, it’s a great time to buy, yes rates are historically low and only likely to rise, but it’s not JUST about money. Buying home is about your personal goals and happiness. If there is an inkling that buying is going to make you unhappy or cause you issues in your relationship, we need to talk about it to make sure the time is right. We’ll consider ALL aspects of homeownership, including that fantasy puppy!
Guess who is going to wait to buy a home?