Author: Emily Heffter

Virginia real estate agent Bic DeCaro has a psychology degree that comes in handy when she’s showing homes, especially to first-time buyers. They get emotional. They fall in love. They get caught up in bidding wars they can’t afford.

They make mistakes.

“The big thing is buying for the moment and not looking down the road,” she said.

That sums up the regrets of many first-time home buyers Zillow surveyed after their boxes were unpacked and their infatuation had faded. Almost half of them said they would do things differently if they had it to do over.

Here are their biggest regrets.

Size and layout

Of buyers with regrets, 62 percent said they wish their homes were bigger or laid out differently. They wish they had bigger kitchens, more storage space or just more space in general.

“Almost always, they outgrow it faster than they think,” DeCaro said.

Bobby Harding, a Keller Williams agent in Louisville, says first-time buyers think too much about square footage and not enough about the floor plan.

“Everybody wants 1,400 square feet, 2 bath, 2 beds … They’re thinking about Mom and Dad’s house, a segmented house,” he said.

Sometimes, they just need to consider something more modern.

The cost

In the Zillow survey, 40 percent of first-time buyers with regrets said they either paid too much or should have put more money down on their new homes.

More than a third (38 percent) said they were surprised by how much it costs to maintain their new homes, and 20 percent were surprised by the cost of closing.

Of their lessons learned about costs, 20 percent wish they had negotiated more on price, and 14 percent wish they had shopped around more for a mortgage.

The neighborhood

More than a quarter of those with regrets said they don’t like their neighborhood.

Patricia Short, a Keller Williams agent in Katy, TX, advises her buyers to visit potential new homes on a Friday night.

“Friday night is a really good night to drive the subdivision,” she said. “Is your subdivision going to be crowded with cars to where you can barely drive up and down the street? They’ve got their garage doors up, their lawn chairs out and their beer coolers out?”

(If that’s what you like to do, she added: “You’re home.”)

The yard

Almost 1 in 4 homeowners had a regret about their yard. Of the 24 percent who cited lessons learned, 12 percent wish for bigger yards, and 12 percent wish they had easier yards to maintain.

That means you should be realistic about what you want in a yard before you buy. And DeCaro tells buyers in Virginia, “If you’re going to want bigger and more outdoor space, you’re just going to have to move farther from the city center.”

Parking

Nearly 17 percent of first-time buyers with regrets wish they had a different parking situation — another practical matter that might get lost in the emotional swirl of a first real estate transaction.

That’s where a good agent comes in, Harding said. He likes to insist first-time buyers look at three to five homes, at least. While they fantasize about paint colors and kitchen remodels, he points out problems with floor plans, parking and resale.

Agent Phil Faranda agreed: “It’s simply a matter of not thinking it through enough. They’re so invested in the emotions. It’s almost like they rush to the altar just to say they were married, instead of choosing the right guy.”

If you are considering a home purchase, give us a call, text or email. We would to help you make the right choice for your home purchase.

-Steve and Sandra

Steve Hill and Sandra Brenner
SEATTLE-NORTHWEST
Windermere Real Estate

These are some of the findings of an Ipsos poll conducted February 27-28, 2014. For the survey, a nationally representative sample of 2,030 randomly-selected adults aged 18 and older residing in the U.S. was interviewed via Ipsos’ U.S. online omnibus. With a sample of this size, the results are considered accurate within +/-2.2 percentage points 19 times out of 20, of what they would have been had the entire population of adults in the U.S. been polled. The margin of error will be larger within sub-groupings of the survey population. The sub-group of first-time homeowners with regrets in the sample is 348, which has a margin of error of +/-5.3 percentage points. These data were weighted to ensure the sample’s regional and age/gender composition reflects that of the actual U.S. population according to data from the U.S. Census Bureau. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

There has been a lot written about how buying a home is less expensive than renting one in most parts of the country. Rents are skyrocketing and homes are still at great prices. These two situations are also causing some sellers to consider renting their home instead of selling it. After all, a homeowner can get great rental income now and perhaps wait until house values increase even further before selling.

1. How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).
2. Because of the economy, many homeowners cannot make their mortgage payment. What percentage of tenants do you think cannot afford to pay their rent?
3. Have you interviewed experienced eviction attorneys in case a challenge does arise?
4. Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
5. Will you allow pets? Cats? Dogs? How big a dog?
6. How will you actually collect the rent? By mail? In person?
7. Repairs are part of being a landlord. Who will take tenant calls when necessary repairs come up?
8. Do you have a list of craftspeople readily available to handle these repairs?
9. How often will you do a physical inspection of the property?
10. Will you alert your current neighbors that you are renting the house?

Did you know the more homes you bid on and lose, the more likely you are to pay too much for a home? Here’s a primer on the phenomenon of “bidding burnout” and what you can do to avoid it.

As real estate markets continue to improve, and the neighborhood you’ve had your eye on is suddenly the “hot spot” on the map, there’s a real risk you could end up paying too much for your next house. One of the major culprits? A little phenomenon called “bidding burnout.”

There’s a serious emotional roller coaster associated with finding the right home, putting in an offer, discovering you’re in a competing offer situation, and then losing the home to someone who’s willing to pay more, or can squeak through on an all-cash deal. The highs and lows can take a real toll. Just when you’ve imagined what it will be like to put the hunt behind you, you feel like you’re back to zero.

When it happens once, it’s a hassle. When it happens five times? It’s downright traumatizing!

Bidding burnout sets in when you find yourself too fatigued to hold firm on what you’re willing to spend, and you begin making major financial decisions based on the desire to simply “be done with it.” You may have been pre-approved for $500,000, but had been planning to only spend $390,000. Suddenly you find yourself itching to pull the trigger on your full pre-approval, even though a little voice is telling you paying the premium will cost you in the long run.

In addition to paying too much, bidding burnout often leads to compromises in other areas. Before long, you’re looking beyond the borders of the neighborhood you’d wanted. Rationalization sets in: “What’s an extra 10 minutes added to my commute?” And: “Maybe it’s not that big a deal to settle for a different school district.” Full fever sets in when you find you’re far, far away from all of the qualities you told yourself were “must haves” for your next home.

If you are considering a home purchase in a multiple offer market. Give us a call, text or email and let us share our strategy to help you get the home you want.

-Steve and Sandra


Steve Hill and Sandra Brenner

SEATTLE-NORTHWEST

Windermere Real Estate

National Homeownership Month actually started as a week-long celebration of homeownership during the Clinton administration in 1995. In 2002, President George W. Bush proclaimed June as the National Homeownership Month. Here is an excerpt from his proclamation:

“Homeownership is an important part of the American Dream…A home provides shelter and a safe place where families can prosper and children can thrive. For many Americans, their home is an important financial investment, and it can be a source of great personal pride and an important part of community stability.”

“Homeownership encourages personal responsibility and the values necessary for strong families. Where homeownership flourishes, neighborhoods are more stable, residents are more civic-minded, schools are better, and crime rates decline.”

“During National Homeownership Month, I encourage all Americans to learn more about financial management and to explore homeownership opportunities in their communities. By taking this important step, individuals and families help safeguard their financial futures and contribute to the strength of our Nation.”

If you are considering taking  \steps towards homeownership, give us a call text or email. We would love to make it easy for you to get into your first or next home!

-Steve and Sandra



Steve Hill and Sandra Brenner

SEATTLE-NORTHWEST

Windermere Real Estate

Does the prospect of a big down payment make home ownership seem impossible? It’s not as out of reach as you might think. Here are five tips to help you climb the down payment mountain.

Every month you pay the rent, you’re probably thinking, “I wish this money was going into my future.” For a lot of would-be first-time home buyers, it’s the down payment which makes home ownership seem impossible. Climbing the “down payment mountain” isn’t impossible. Like any major challenge, it’s all a matter of breaking your big, hairy, audacious goal down into practical steps.

Here are some tips to conquer saving for a down payment:

Find out where your money goes. You can’t start saving if you don’t know where you’re spending. For a month or two, track each expenditure, no matter how small. Get an objective picture of where you’re spending the cash.

Get specific about how much you need to save. Even if you’re not 100% sure what your down payment needs to be yet, it’s good to start doing a little math to figure out how much you need to save. Pick a dollar amount and a timeline to hit that dollar amount. For example, a $25,000 down payment in two years comes to $1,041/month. Sound unrealistic? Either scale down your home desires to something smaller or scale up your timeline. If you can wait three years, that monthly savings goal drops to $694/month.

Determine the big moves you can make. If you’re in a three bedroom apartment and can stomach the idea of scaling down to a one bedroom, how much would you save in rent? What about going from two cars down to one? If you can make it work, these sacrifices will have a huge impact on your savings goals.

Setup a separate savings account. Don’t let your dream home money mingle with your regular checking or savings account. Establish a high-yield savings

If you are considering a home purchase, give us a call, text or email. We would love to have the opportunity to help you find your new home.

-Steve and Sandra

Steve Hill and Sandra Brenner
SEATTLE-NORTHWEST
Windermere Real Estate