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.
Comments(4)