Admin

Dreaming of Buying a Home Means Saving Sacrifices

By
Real Estate Agent with Dirt Road Real Estate SA676002000

Often professional real estate agents hear of first time home buyers dreaming of buying a home. Yet, these potential home buyers fail to understand that “dream” demands  saving sacrifices.  An immediate sit down by those first time home buyers is required to review wants and needs versus actual financial behaviors.

These saving sacrifices might include a review of these purchases:

  • Cable and other subscriptions  
  • Internet
  • Clothing  
  • Household  
  • Mobile devices
  • Vehicle from payments to fuel to insurance
  • Dining out   
  • Fast food including expensive morning coffee

Consider, that expensive morning coffee has an average cost of around $4.00. Presuming a 5 day work week, those purchases would amount to $20.00.  With 50 weeks for a typical worker, that amounts to $1,000 annually.

The question after reviewing each purchase is fairly simple:

Do I really want a home or do I really need this?

Saving dollars is difficult especially with rates of high inflation. Yet with sacrifice those dollars can be saved for that down payment along with other before and after out of pocket expenses including:

  • Home inspections - Before
  • Appraisals - Before
  • Immediate repairs  Before and/or after
  • Escrow closing Costs - Before
  • Loan Fees - Before
  • Opening utility accounts - After
  • HOA/POA monthly fees - After

If the dream is to buy vacant land, there may be well inspections to surveys along with closing costs. Then after close of escrow, septic costs to clearing the vacant land to fencing may be necessary.

Yes, saving sacrifices are a must if one wants to buy a home or even a piece of vacant land. The question at the end of the day are you willing to make those sacrifices as your parents and grandparents did.

Saving for a down payment is often the biggest hurdle for first-time buyers—but don’t let it stop you from reaching your homeownership dreams! With some helpful tips and a solid plan, we can make that goal feel a lot closer. Want to learn how? Let’s connect! #thehelpfulagent #home #houseexpert #house #listreports #investment #a012125 #realestateagent #realtor #realestate #househunting #happyhomeowners #dreamhome

Leanne M Smith, The Grit and Gratitude Agent Who Goes the Extra Mile Because Life Begins Where the Pavement Ends.

Feature Photo Courtesy of ListReports.com

Any reproduction of Leanne M Smith’s blog for use by any AI or GAI, distribution or reproduction including but not limited to electronic newsletters e.g. PDF’s Internet sites or physical products e.g. newspapers, CDs without prior written permission and consent by me, Leanne M. Smith (Leanne Hoagland-Smith) is strictly prohibited.

Posted by

Leanne M. Smith, MS, GRI, rCRMS

2018 KGVAR Rookie Realtor of the Year-55+
219.508.2859 MST
Life Begins Where the Pavement Ends
Connect with me on LinkedIn:
http://www.linkedin.com/in/leannehoaglandsmith
Show All Comments Sort:
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

Good morning, Leanne... most things in life require some level of sacrifice to achieve. Homebuying is no exception. Your post reminded me of someone who many years ago would "service" my computer and software. He always complained about how he couldn't save enough for a down payment. He did at least three runs a day to Starbucks. I suggest he stop drinking Starbucks and save that money. Those three runs cost him over $5,400/year.

Jan 22, 2025 05:13 AM
Leanne Smith

Sometimes the simplest answers are right in front of us, but we fail to see those answers as you pointed out in your post. Wow, 3 a day, sorry not a Starbucks fan. I bought one cup and threw it out after my second swallow.

Jan 22, 2025 07:25 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

It's great to point out that there are additional costs before making a purchase that must also be planned for. As well as costs at closing. Saving money does indeed mean doing without!

Carol Williams - suggestion for Second Chance Saturday.

Jan 22, 2025 05:16 AM
Leanne Smith

Good morning Kat Palmiotti Yes those additional costs due matter. I appreciate the suggestion to Carol Williams for Second Chance Saturday.

Jan 22, 2025 07:23 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Leanne - priorities are important.  Understanding needs versus wants are as well.  Together with many other factors begin to separate buyers from tire-kickers.  It's not easy, but necessary.   

Jan 22, 2025 06:49 AM
Leanne Smith

So true about the separation of qualified buyers and tire-kickers. Good morning Michael Jacobs 

Jan 22, 2025 07:21 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi Leanne,
One of the greatest financial lessons I started learning as a child (age 13) was to track EVERY penny I spent. I earned money in the summer picking berries, and received a small allowance. I was required to keep a ledger of my income and expenses. I was never restricted about how I spent MY money, but I was required to log it all and look back to see how I spent the last $5 I withdrew before taking more. It was very enlightening how easily money can be flittered away. The adult version is no different, just on a bigger scale.

Jan 22, 2025 07:17 AM
Leanne Smith

Tracking our dollars helps to understand where money goes and how we can save where we thought we couldn't save. Tracking also works with calories. Thank you for sharing your personal experience.

Jan 22, 2025 07:21 AM