You’ve decided to buy a home, you’ve gotten preapproved with a lender, your file has even been pre-underwritten. Here are some things you might want to give some consideration to- what you want versus what the market might support…
Here’s to considerations to think about..
Consideration one- Let’s say you’re pre-approved to $700,000, the house you want is a standard three-bedroom two bath however, you also need to have a pool, and its has to be on five acres of land. In the market in which are looking for that type of house that is in relatively good condition needs extraordinarily little or no work is $900,000+. Your expectations of what you want are so high in relation to the price you can afford the situation becomes completely out of reach. When you start really looking at the goal and putting yourself in a situation where your expectations are such that they are out of alignment with what market expectation supports is a tall tale sign you’re just not ready to purchase a home yet. This is ok because real estate can take time and often times good things come to those who are patient with the process as long as they can align what they want to what the market will support.
Consideration two – similar to the first consideration let’s say the house you want is attainable at the price you are qualified at-using this $700,000 maximum purchase price. The house you want is $700,000. However..
This requirements exists:
- certain neighborhood only
- a certain geographical ZIP Code
- must be single-story home
- must have a big back yard
The challenge that does not exist here is flexibility. Here’s why- let’s say this house does exist, but it only comes on the market maybe one or two times a year. That means for 12 months of the year you have only two opportunities for example to get this unicorn house. More than than likely if you’re that specific about a certain house in a certain geographical area and a certain neighborhood and a single-story with a big back yard, there’s probably an 80% chance your competition has the exact same goal which means that your $700,000 price point that you can afford to get the house that you want gets pricier because other buyers bid the the home up. This means you could wait for years before you buy the home, because the opportunities only come up, maybe one or two times per year and then when they do come up the house you want is flooded with other offers which means you have some considerations to make either adjust your criteria, get more of a down payment, pay off debt, get a cosigner to increase your purchasing power. If can increase the purchasing power for the right house, you need to be willing to go all in to do whatever it takes to get that house or risk not getting it and not moving the needle and staying in the same situation you presently in. Its either getting more buying buyer and throw the farm at it or adjust your specific home characteristic criteria.
When you’re buying a home, it’s a series of checks and balances making considerations and/or concessions for the right house in the right by in the right neighborhood for the home that you want knowing you could always fix up the home in the future. In other words, real estate is a location, location game and every real estate expert will agree. The driver of buying any one home ought to begin with the location, then the house. If you focus on the house first that may lead to difficult criteria further eating into to your possibility of buying a home becoming a dream versus reality.
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Posted in: buying a home, buying a house, cash out refinance, FHA home loans, FHA mortgage, home buying in Sonoma County, how to buy sonoma county real estate, mortgage comparison shopping, mortgage payment, mortgage rate quote, preapproval to buy a home, Santa Rosa mortgages, Sonoma County Mortgage Rates
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