Starting a Home Search? Things to Consider
Dreaming about that perfect home? The home buying experience is exciting and fun, but can often lead to frustration and disappointment. Here are some helpful analogies to keep things in perspective...
What Happened To That Ferrari?
Let’s say you are in need of a new car and you really love the idea of a Ferrari. You start looking at pictures of Ferraris on line; you drive by Ferraris and drool. You now take a day off, take your partner, friend or spouse, and decide to go to the dealership and test some of the cars out.
That red hot one is gorgeous and perfect for you. After contemplating it for a while, you tell the sales guy you are ready to buy the car but the saleperson surprises you by telling you that that beautiful Ferrari is far more expensive than you expected. Plus, the monthly gas costs are really high.
You ask the salesperson what type of car you can get with your budget and are somewhat dismayed to hear that you can only afford a Subaru
What do you think happens to your level of excitement now that you need to choose something less expensive? You might like something, but in your mind you’ve already envisioned yourself cruising in that Ferrari. The whole car buying process now seems like a real disappointment.
This is what might happen to you if you are planning on buying a home and start looking at “perfect” homes without understanding the market and setting your expectations. That beautiful and perfect home that you could afford would have been so much more appreciated if you didn’t spend so much time looking at the mansion with the personal security guard for the past 3 months.
Those Adele Tickets Go Fast, You Know.
Your friend Debbie contacts you this morning and tells you: “Guess what?! Adele tickets are on sale!”, your response to her: “Sounds great Debbie! I’m just busy right now, but in about five days from now at 5pm, I will have some time to buy them”.
Five days go by and right before 5pm, you contact Debbie and ask her for the link to buy those tickets. Hmmm… good luck with getting those tickets now!
The Northern New Jersey real estate market is experiencing a period of low inventory, meaning there are more people looking to purchase properties than those offering theirs for sale. Just like there are more people wanting to attend an Adele concert than available seats at the Pepsi Center. If you find a home you like – go see it. It might be gone tomorrow.
The Pet You Adopt Will Be Your Family
You go to the shelter and really want to adopt Lassie. She’s an adorable dog and you fall in love the moment you lay eyes on each other. You file an application, only to learn that 10 other people today also would like to adopt Lassie. You nervously wait to learn if you are the lucky one to bring her home. Too bad – it’s not you.
“But Lassie was going to fit perfectly in my life. I can’t imagine having any other dog now in the world!.” A few weeks go by and you still really want to adopt a dog. You go back to the shelter and meet Spot. You love him and put an application to adopt him. This time you are the one chosen! Spot is going home with you and he’s going to be part of your family and you won’t be able to envision from now on a life with the other dog. Who’s Lassie anyway?!
When buying a home, people tend to envision their lives in the house they are submitting an offer to buy. If they lose the offer to someone else, then they feel upset and distraught.
Don’t worry – the one you will end up getting will end up being your home that you love, and you will completely forget about the rest “almost”-houses-you nearly-bought.
Waiting In Line For Nothing Sucks
You are waiting in one of those insanely long and crazy lines to buy locally-made and delicious ice-cream. You’ve already chosen your flavors, you can taste the ice-cream literally on the tip of your tongue. Finally after hours of waiting, you reach the counter. The ice-cream shop lady scoops your choices, puts them nicely on a cone, sprinkles some rainbow sprinkles, and informs you it will cost $6.50 please.
Wait what? The sign said $5, and that’s all you have! Well that didn’t include things like tax, some special delivery charge to bring the milk from Italy and so on. In this scenario you might nicely request the lady to let this one slide and sell it to you for $5. You were after all, waiting in line for two hours.
In real estate, that does not happen. When you calculate how much money you need to close on a house, don’t just calculate the down payment amount. Homebuyers need to also take in consideration costs such as lender closing costs, real estate transaction costs, inspection costs and so on. And when thinking about your monthly payments, don’t forget to include property taxes and monthly utility costs.
Keep all of this in mind when home shopping and you will be most more prepared to find a house that will become your dream home.