Can a Home Buyer Suffer From "Under Buying " ?

Real Estate Agent with EXP Realty 414-525-0563 57026-90 Broker

  Yes...yet another term to add to the real estate dictionary...with Curbalicious and Thinventory, etc....Under dictionaryBuying. What is UNDER BUYING ?

      Under Buying is a "syndrome"....or condition that some Buyers have sometimes founded in fear. The thought of 30 years of debt is terrifying.  It is accompanied by a long list of "what if's" . What If There is:

  • Job Loss
  • Divorce
  • Illness
  • Major unaffordable repairs
  • The market drops and equity is gone


  list    To "lessen " the What IF list....the choice is to buy a house that is less than the Buyer wanted but to them a "safer" choice.....or the act of "under buying."  The self talk may include...

   - No eat in kitchen means you can eat in         the ....(name that room and that is why God

     invented TV Trays

  - Old world charming and large rooms makes up for no

     or a one car garage (Until there is a ice/snow storm)

 - Nothing is perfect...the ...Busy Street, railroad tracks, 

    proximity to commercial property is something to "get

    used to over time."

 - Fresh air is a good thing...central air is over rated

 - No yard means less to mow and landscape


       To remedy the What IF list...the Buyer creates the rationalization list ...and the end result CAN be...making a "safe" purchase of a house at a far lower price than the Buyers RemorseBuyer can afford rationalizing that the things that may appear to be objections...are really just minor inconveniences and can easily become just a "part of everyday life."   Reality can be....that day never happens and the Buyer's remorse of not having spent a little bit more to get that...extra bath, garage space, eat in kitchen, bedroom, yard etc.  sets in....and don' t be surprised if it becomes the Realtor's fault...far easier than owning the decision.

    The Cure for UNDER BUYING ??? 

 cure pill

 - Be confident in the buying decision. Have a good down payment and cash reserves. 


 - Buy excellent insurance and we recommend a home a   great home warranty to help with unexpected expense.



- Talk to an accountant...look at the options for claiming more exemptions and increasing take home pay rather than living on less each paycheck and getting a large tax refund.


- Employ an experienced Buyer's agent who understands your situation and can assist you in your decision.  (We always tell Buyers we would LOVE to be a part of their memory making in the purchase of  a home..but we will

still eat if this is not the best house for them. We are not

desperate to sell them a house and don't want them to feel desperate to buy one.)


 strength  The BEST decisions are made from a position of strength.  The Hansons in southeastern Wisconsin would be honored to assist Buyers in relocation, moving up or making that first or post divorce buying choice.




Posted by

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS

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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Sally and David

That's a new one for me - the term, not the concern/ I have had a few first time buyers who were a little panicked when they really thought about the implications, the costs, and emptying the bank account of all that money they had save. I don't think I have had anyone actually try to conciously under-buy. I may be wrong.


Jul 17, 2016 12:21 AM #1
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Hi Sally Sally K. & David L. Hanson I think the real fear should be a lifetime of rent payments. I hope to live more than 30 years more. IT'S ONLY RENT AFTER ALL.

Bill Roberts

Jul 17, 2016 12:47 AM #2
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Sally and David, people really do have the ability to "grow into" a home in the financial sense.  And I will respect a client's budget - my parents always lived slightly below their means and it actually worked out really well, except that, as the oldest child, I spent more time in their first "compromise" house that was ideal. 

Jul 17, 2016 01:42 AM #3
Anita Clark
ColdwellBanker SSK Realtors ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

Sally: Sometimes they under buy and other times they look beyond their means. No two buyers are alike that is for sure.

Jul 17, 2016 02:20 AM #4
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

You said it straight Sally & David, noting is perfect. You will never find the perfect home but you will gain equity and I am all for buying Vs renting.

Jul 17, 2016 04:12 AM #5
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I do like the term but not when buyers experience it. It does happen and most often it goes like "we dont want to eat boxed mac and cheese for the next 30 years". Hope you had a good weekend Sally K. & David L. Hanson 

Jul 17, 2016 08:47 AM #6
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Sally and David- sometimes people have the what-ifs  and all they need is a wise agent to help walk them through it. And yet there are other times when buyers suffer from Over-buying. What are you going to do!

Jul 17, 2016 10:23 AM #7
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Sally and David the sad thing is if the IF's happen they will not be able to make the monthly payments on the the "Under Buying" house either.  So it does not make sense to "Under Buy"

Jul 17, 2016 11:43 AM #8
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I have met more buyers over buying. I adice them to make sure they have money for emergencies.

Jul 17, 2016 08:54 PM #9
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Love your new term, Sally and David.  I've had a number of first time buyers that fit into this category precisely.

Jul 17, 2016 09:30 PM #10
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is very good reading for prospective home buyers.

Have a most productive summer!

Jul 17, 2016 09:45 PM #11
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Sally K. & David L. Hanson

WI Realtors - Luxury - Divorce
For All Things Wisconsin Real Estate...Call the Hansons
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