Buying a home, purchase for the future, not the present
Written on June 23, 2011 by Rose Ryrie
Moving is expensive, stressful and time consuming…So why would anyone want to move more often than necessary? I advise my clients you should usually buy the most home you can afford (one that you won’t outgrow in the immediate future).
But the key word is future. Buying a home is not like buying a dress for an event. The dress only needs to work for the event, but a home needs to work for the future. Will your future bring more or fewer family members residing (or visiting) in the home? It is more important that your home function for tomorrow than for today. Tomorrow always arrives sooner than we anticipate.
About 8 years ago I was referred to a client looking for a starter home in Burbank. He was insistent on buying the tiniest (real estate speak: coziest) home he could. He could afford and qualify for more, he was just overly cautious. He was single, with marriage and children in his future and I was fairly insistent that he buy something larger. Something that he wouldn’t outgrow in a year or two.
After showing him too many homes I told him quite honestly that I could not continue to show him. I can’t work for free, and when I told the truth, he refused to listen and apparently would prefer to be lied to. I won’t do that.
I don’t remember how many homes I showed him or for how long, but I do remember my frustration. When you work with a real estate agent, you should trust them, and if you don’t, you should find another Realtor. Realtors are immersed in real estate, with buyers, sellers, lenders and escrow officers and we have hopefully moved hundreds of buyers and sellers. We can offer valuable insight, when our buyers are willing to listen.
Shortly after I stopped showing him homes, he found another real estate agent who told him exactly what he wanted to hear: “prices will go up forever, just get your foot in the door”, “ buy now, sell in a year”… just hogwash.
He bought a very tiny home, soon after met the woman of his dreams and married; guess what? They had twins. He took out a second to remodel the kitchen, but the home is still much too small; the market has declined and he is in a pickle.
Buying a home is serious business, yes business, not just emotion. In any market plan on owning the home for at least five years, in a down market ten. Oh, and this guy, called me several months ago, we are exploring options, but I think the only one is to rent his tiny home and he and his family of four can rent another. Now he wants my advice… too bad for him he didn’t take it six years ago.
Related Posts: What is buyer’s remorse?
Ten steps to prepare for homeownership
Top six home buying mistakes
How long should a buyer expect to remain in their home
Homebuyers, patience is a virtue
Similar Posts:
- Mild Winter Accounts for Lower New-Home Sales
- Problems you can face due to an incompetent real estate agent in Ajman
- How to locate properties in Ajman?
- Then and Now, Comparing Home Ownership Costs
- Pricing your home to sell
