Don’t buy the house today that could be your tomorrows problem! Make your next home purchase a wise one.
Buying real estate for your home or as an investment means more than looking at properties, falling in love and then buying one. Buyers have a list of wants and needs in a new home and while inventory here in Barrington is not short, it can be hard to check off as many of those dream boxes as you would like. Inevitably there is something that forces the issue of choosing which property to buy. These could be:
- Timeframe, the clock to something is ticking, you need to decide soon.
- Your existing house has sold, you do not want to deal with finding temporary accommodation.
- Your rental lease has an end date. You have to move out by then.
- Relocation buyers want the family to move all at the same time.
- The new school year starts soon, you need a home purchase to enroll.
- You’ve found very little that matches your dreams, you may as well just go for one that is good enough.
Some of the reasons to pull a buy now trigger are situational, others are emotional. Only you as the home buyer can make the decision as to when you will make an offer on a property. It can feel like you are being squeezed to purchase too quickly.
Make Sure Your Home Purchase is a Wise Decision
The benefits of a dedicated buyers agent are priceless. No buyers agent should ever stop you buying the home you fall in love with. They should educate you about whether the house you fall in love with today could become a problem tomorrow. An educated buyer will make a risk assessment of the good, bad and potentially ugly future issues and decide. If you are not guided in any way, you might make a big mistake and not know it now.
Consider that life has a habit of changing things up. So while you think today hat nothing will change, a few years down the road the unexpected occurs and now you must act accordingly.
Even if you are buying a property as an investment, make sure your agent knows why you are buying. Investment properties are often sold more quickly the the family home.
An Unwise Home Purchase or Two
Here’s a real case in point to showcase exactly what I mean.
You are a buyer with a set budget and a list of things you must have. Many homes will fit the bill but curb appeal will always factor in. You find a house that suits your needs and the curb appeal is fabulous. So much so you think it’s “The House”. It’s a little pricey for you. You bide time a little because you can. You decide it’s worth making an offer to see if the house is within reach.
Under guidance of your buyers agent, me, you understand that the negative factor is the busy road next to the house. Yet you are compelled to proceed because emotions have taken over. I caution you again about the road but this is to be the forever home for the family. The chances are you’ll live there for 18-20 years while the kids grow. You buy the house. You are going to build a bigger berm between your yard and the road.
Five years later you decide to buy another property, for a variety of reasons. The selling market is better now and you should be able to sell the existing property. You move ahead with buying the next house and move in. We list your house. Showings are steady but it is a luxury homes market, so buyers are not lining up at the door daily.
Two things happen. First the luxury market starts to decline just as you come to market. None of us would know that’s going to happen or why. The objections we get from the buyers that do view are almost always “The Road”. In a declining market objections like busy roads magnify.
Now you cannot find a buyer willing to take on your problem. To the buyers it’s a bigger problem than it was to you. There’s nothing in home sales we can do about busy roads. We cannot move them, close them, or even try to mitigate the objection. The road is there, every day.
The only suggestion any real estate listing agent can do is to tell you to reduce the price to try to overcome the objection buyers are having. It makes your property reachable to a different set of buyers who are looking for a great deal.
If you choose to ignore that you’ll be waiting a lot longer for that perfect buyer. After refusing to reduce the price and after a lot of buyers objecting to the road, my job is almost impossible. So I choose to stop my costly marketing and time and you hire a new agent.
An Investment Decision – A Different Sale
This was not one of my clients but a recent conversation did have me scratching my head a little. A property was bought well under asking price as an investment. Now the property is back up for re-sale at about the same as the original price. It was bought for investment. The buyer thought he was getting a good deal and wants to cash in on it.
The problem is, it is in the top 1% of home prices for the area. It was on the market for extended years before the current owner bought it. Now it’s back on the market in declining conditions, hoping to cash in on value that was never there. In my humble opinion it was never a wise investment, not at all. He paid market value. That market value is no better today, if anything it’s less. It certainly is not worth the asking price.
Any buyer with a good agent will go hunting a property’s history and see what happened. A buyer of investment property should get some counsel on buying at the top end of any market. He needs to know the likely outcome for anything less than a 20 year ownership.
Hire a True Buyers Agent
What is an untrue buyers agent? Actually there is no such thing. Any licensed broker can help buyers or sellers, renters or landlords, residential or commercial. Our license is the basis on which we are allowed to practice real estate.
Most agents are generalists, they usually choose residential or commercial and then do anything that falls under those two hats. So any residential real estate broker can work for you as a buyers agent. They show property, write your contract, attend your home inspection, connect you with loan officers, attend your closing. You are a happy buyer. Maybe this type of buyers agent is the untrue buyers agent?
A more dedicated buyers agent. This is someone who is most passionate about helping buyers make the best home buying choices. Through more exposure on the home buying side, more experience at writing contracts, negotiating deals and especially the local market they serve, these buyers agents are worth more to you.
Whether you are buying a home for the first time or need help with the steps to buy a house, a buyers agent is more than a door opener. We are a guide that will offer experience, opinions and more skill in working on the buying side, all to help you make the best choice. A great buyers agent is one that usually gravitates to the buy side of deals as a preference in the industry. They hone their skills where their passion is.
For me that’s a buyer, I want to help with your next home purchase. I am not afraid of telling you things that might cause you to stop buying a property. I am here to protect your investment, I think to your future sale.
Contact Corinne For Help
For the best buyers agent in Barrington, give Corinne a call. She prides herself on her skills being more finely tuned to buyers. You won’t find a more grounded agent passionate about buying homes.