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When Buying A House-Face Reality

By
Real Estate Agent SL3287291

Many people have a mental picture of what they want their new home to look like when they buy. But their picture may not always match the reality of what they can buy.

 

If a buyer has the picture of an isolated cabin in the woods and moves to South Florida, reality will probable be difficult to deal with.

What are some of the Reality Factors a Buyer will need to work with?

There are 3 Main Factors that Buyers will need to deal with realistically:

1. Location

2. Price Point

3. Fit and Finish

Location can be a very important part of the selection process. Many times travel time to work or school can be extremely important and may even be non negotiable.

But Reality says that Location can have a big impact on Price Point and Fit and Finish. The ideal location may be in an area where homes sell for $600,000+ but the budget is $250,000. 

Price Point is often a fixed amount that has been capped by the Lender. Based on the Buyer's debt to income, the Lender sets the limit they will provide a mortgage for. 

Fit and Finish would include the size and condition of the house. A large family that needs 4 bedrooms may have a difficult time finding a house in the location and price point they are in. This factor also considers the state of repair of the house. The right location and price may bring a house that would need some fixing up. This affects the budget and would have to be discussed with the Lender.

When buying a home Reality will often be a major factor.

In today's market where prices are on the rise and inventory is low, the pool for selection can be very difficult. 

The result is that the buyer will probably need to adjust the picture in their mind to fit the reality of the local market.

With only 3 major factors involved, buyers often will need to change the location or the fit and finish.

This is why it is so important to work with a knowledgeable real estate agent who is very familiar with the market.

Find an agent that will listen carefully to you as you describe your needs in housing. A good agent will work hard to help you find the best match in your home search.

 

If you are looking for your Dream Home in Southwest Florida, John Wiley is prepared to help you understand the local market and find the best match for you.

For more information on Southwest Florida Real Estate visit John's website today: Mr-Florida-Real Estate

Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

John

You raise a really good point - so often we find buyers who don't quite have a realistic view of what they afford in the local market. Sometimes spending time looking makes that a reality, but sometimes they have a hard time giving up what they want in light of what their budget and the inventory will allow. And with competition it becomes a tougher issue

Jeff

Mar 22, 2016 11:57 PM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Jeff Dowler CRS you are correct. Spending time chasing an unrealistic dream is a great frustration to the buyer. If buyers found an agent they could trust and would listen to the agents counsel, there would be better results.

Thanks for commenting.

Mar 23, 2016 12:05 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Amen!  I should send this to multiple of my buyers LOL!

Mar 23, 2016 12:16 AM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Kristin Johnston, Waukesha County Realtor 414-254-6647 yes it is becoming more common in today's market that dreams clash with reality.

Our job is to educate and hope they will listen.

Thanks for commenting.

Mar 23, 2016 12:29 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

John,

I think this is a great post.  And really listenting is key.  Prior to our having our RE licenses, we were looking for a home in Los Angeles.  We defined exactly what we wanted including our budget.  We did not want a flag lot (the agent took us to 6 of them), we wanted a large yard (we saw napkins yards instead).  They did not listen, and yes we could afford what we were asking for.  A

Mar 23, 2016 01:42 AM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Ron and Alexandra Seigel I agree that LISTENING to buyers is very crucial in reducing stress and leading to a successful transaction.

Thanks for sharing your personal experience.

Mar 23, 2016 02:05 AM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Excellent post John! Unrealistic expectations and demands are nothing more than a dream that costs time and money. Very good points buyers should take note of. I get at least one call a month from someone who's moving to FL thinking they could buy a home for under $100,000 where homes are selling for over $250,000. 

Mar 23, 2016 10:28 AM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Beth Atalay thank you so much for sharing your experience of unrealistic expectations. Hopefully, we can help educate consumers so they can achieve realistic goals.

Mar 23, 2016 08:25 PM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

People don't always know what they want until they see it. But they certainly need to be realistic!

May 18, 2016 06:48 AM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Sharon Tara you are correct that many buyers really do not know what they want. But then they see something they just have to have only to find out it is out of range. Education on the agents part is never ending.

Thanks for your comments.

May 18, 2016 06:53 AM
Elyse Berman, PA
LoKation Real Estate - Boca Raton, FL
Boca Raton FL (561) 716-7824

John Wiley Your post is exactly right.  Some items may be non-negotiable but, in today's market, buyers must be realistic if they want to buy.  This is where the reality you talk about comes in. 

Jun 09, 2016 09:57 PM