Can you handle your emotions?
It’s no secret that home prices are climbing, that interest rates are historically low, or that demand and affordability are higher than they’ve ever been. That means in today’s market, sellers are in the driver’s seat.
To succeed as a buyer in this fierce environment, you may have to remove your appraisal contingencies because the appraiser may not justify the value that you’re paying. Sometimes, sellers want rent-back agreements, which will cost you money, especially if the rent-back is free. You might also have to bid higher than you want to pay to secure a home. Many things are happening in today’s market that weren’t going on even just months ago. That has created a high level of emotional uncertainty for buyers. They look at all the things that they’ll need to do to have a chance at competing in multiple-offer situations and realize with dismay that those things will cost them a lot of money.
“Fall in love with the numbers before you fall in love with the house.”
The truth is that most people don’t have an intimate knowledge of exactly what it’s going to take for them to buy their next house, whether that be how much they’ll need to bring in, what their maximum purchase price is, or what their monthly payment will be.
Before we even start the home-buying process, we tell our buyers to fall in love with the numbers before they fall in love with the home. Especially in today’s market where there are so many different added costs to buying a house, people tend to freak out a little. However, if you’ve fallen in love with the numbers first, it doesn’t have to be so stressful. Talk to a lender or two to gain an understanding of what your financial output is going to be so that when you fall in love with the house, there’s no doubt about whether or not you can afford it.
No matter if you’re looking to buy a home now or in a few years, I’d love to be a resource for you. Don’t hesitate to reach out to me with any questions you have! I’m an open book.