Yes...yet another term to add to the real estate dictionary...with Curbalicious and Thinventory, etc....Under Buying. 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
- Major unaffordable repairs
- The market drops and equity is gone
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 Buyer 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 ???
- 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.)
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.