Buying

Don’t be House Poor

“Honey, the bank thinks we’re rich!

They just approved our mortgage for how much???”

I remember a situation from many years ago when one of my (then) employees decided to dive into home ownership and buy her first house. A few days later, she came into my office walking on air, to tell me that she had just been pre-approved for a $500,000 mortgage. She then went on to describe how she was able to go look at far larger homes than she had originally thought she would be able to, for her first one. Additionally, her bank was giving her a screaming good interest rate for 3-year term.

 

She was so excited, but I was worried.
At the time, she was one of my most successful employees and deserved a nice home.

But I also knew how much she netted on her pay.

And, I knew that maxing out her potential pre approval was risky!

Continue reading

A Buyer’s Competition

“Oh no! We’re in competition!”

Buyer’s viewpoint

These words are dreaded to a lot of buyers. Why is that? Because competition scares a lot of people when it comes to real estate transactions-especially as a buyer.

Auctions are interesting events. Many people go to either get a good deal, buy something rare, or in a lot of cases, go to help out a charitable organization. But something interesting happens at auctions beyond the bidding and buying of lots. There are transformations.

Transformations of every day normal people into competitive beasts.

You know you have seen them. Two people see an item. They each take an interest and each think to themselves, “I think I want that. And I am willing to pay x.” They may even tell people around them their plan. And then, someone else in the room has the same plan-and they become aware of the other’s similar idea.

Continue reading

Buyers – Do You Hate This Question?

Have you ever gone to an open house?

 

Or called a real estate agent about a listing you want to see?

Maybe emailed an agent about a property they have listed?

You just want to check out a house. Maybe you’re just curious. Or, maybe you’re even pretty serious about buying a house. Doesn’t matter. All you’re doing is wondering about a house. That’s it. That’s what you want to talk to the agent about…the house you came to see, or called about.

And it seems like one of the first questions an agent asks you is,

Do you have a house to sell?”

Continue reading

Maybe it was the Last Economic Downturn

Perhaps it was the establishment of the McDonalds, Costcos, Walmarts, and SuperStores.

Somewhere along the line, we have built a culture of cheaper is better.

If you can find a deal then you have done better than the person next to you. And that can be the case if you are buying the exact same product.

Shopping around for a brand name product to get a cheaper price can keep more money in your pocket perhaps.

But when is cheaper not better?

Continue reading