Being a frustrated buyer that can’t find the home you are looking for can certainly make you want to stop looking for your dream home. Inventory right now is extremely low, and good inventory is even lower. Homes come on the market constantly and the good ones always seem to go so quick. So may buyers that we have talked to over the last 12 months have said they got to the point where they just want to stop looking. The advice we give those buyers is to not focus on the result. Instead we want them to focus on the process. By doing that they will get the results they want. The problem that a lot of buyers run into is not taking the time up front to set themselves up for success.
The first thing that a buyer should do is to get preapproved by a local lender. A lot of buyers have this part down. They’ve gotten educated and know they need to get approved. However where some miss the mark is they don’t sit down with their lender after they are approved. They need to sit and talk with their lender about different scenarios about purchase price and how that impacts them. Purchase price can change monthly payments, down payment and how much cash they need to close. Some might be surprised to know that a $10,000 change in purchase price only changes your monthly payment by $50. That change in monthly payment isn’t that much compared to what it could buy. A $10,000 price difference could put you in an entirely different home!
After meeting with the lender you need to sit down with your agent and talk about price. If you know your top budget is a home that is $250,000, you have no business looking at a home that is $270,000 in most circumstances. Even if they have been on the market a long time and are over priced the seller still couldn’t budge. A difference in $20,000 is a completely different home. They have different neighborhoods and different amenities. If you start looking at homes like that outside of your price range, you won’t like homes that you can afford.
You probably be surprised that a $10,000 change in purchase price is about a $50 change in payment. Like cases not that much. Compared to what it could buy. What is the process look like so the first thing we need to do is we need to talk about price we need identify what price you’re comfortable in and that’s where we’re going to stay if you’re looking for a home that’s 250,000 we’re not going to look at homes that are 270,000 there different they are in different neighborhoods and they have different amenities.
The next step is to decide where you want to live. Sometimes we have clients that come in saying they would be fine living in Fresno, Clovis, Sanger, Reedley, Dinuba, Coarsegold and Auberry. That doesn’t work and you’re setting yourself up for failure. You’re going to be running around looking at homes that are going to be in areas you don’t want to live in or they drive is too long for you to get to work or pick up the kids.
Once you decide your price range and where you want to live the next step is to look at those areas with homes that are on the market and see if that exists. Sometimes peoples expectations on price and location doesn’t match up with what is actually out there. After that happens you need to think about the things you want in your home. These things are nonnegotiable. If you want a 4 bedroom house, don’t look at 3 bedroom homes. That distracts you from the goal and isn’t what you need. If you need a pool don’t look at homes without one. You get the idea.
The next step is going out and looking at homes. At this time last year, we would use these steps to get a list of 5 or 6 homes and go out and look at them all at the same time. Now that doesn’t work. The commitment between you and your agent has to be the same. As homes come on the market you both need to be willing to go sacrifice things to get out there and see it. There isn’t the time to wait 5 or 6 days to go see it. The home will be gone.
Hopefully these pointers will help a frustrated buyer to get back out there and apply these steps to find their next home. If you have any questions or want to sit down and chat feel free to give us a call or contact us. We would love to help you build a process for success!