Perhaps I’m over-simplifying the home-buying process. Perhaps it’s because I’ve purchased homes before or perhaps it’s because I’m in the business and I’m accustomed to the process. Or perhaps the reason is that I don’t perceive buying a home as an end-to-all-decision. I’m not an emotional person. I remember buying a home once site-unseen. I actually bought and sold the property without ever stepping into it (long story). The numbers worked, the location was ideal, and it was well below budget. What else is there? My feeling is that everything else can be changed. And as surprising as it may seem buying a home has very little to do with money. The money is either there or it’s not.
My home-buying decision process is simple: (I know this seems very cut and dry…but this is how I do it)
First I decide what my budget is. I leave the emotions out of the equation. You can’t put a negative or positive value on emotions. For me, emotions does not compute well. I’m an analytical. Keeping up with the Jones, also does not make sense to me. The Jones are not moving in with me, nor are they paying for my mortgage.
Second, I determine where I want the home. Remember: Location, Location, Location. For my next home, and there’s always a next, not only do I know what town I want my home in, but I’ve narrowed it down to street names too. What house or condition of the home I find on those streets is irrelevant if the price is right and I can afford it.
Finally, find a home that meets the criteria and make an aggressive bid.
It’s that simple. If the home is over my budget, then why even look at it? For what, so I can see how the other half lives? There’s no point to it. Although, if I think the home is overpriced and there’s a possibility to get the sellers down, then of course I will consider it. If it’s not in my desired location, again, why look at the home? What am I going to do, move the home? I can’t comprehend why people would compromise on either of these. If a home doesn’t meet either of my criteria then why would I get up from my couch or desk, stop what I’m doing and look at something I would never consider buying. My current house was not the most comfortable place in the world when we purchased it, but the price was right and the location was/is ideal. And trust me, I’ve changed everything about it…including the Pergo floors that drove me up the wall.
My home buying philosophy is uncomplicated:
-Purchase a home where you only compromise on the things you can alter or change. THERE’S NO SUCH THING AS A PERFECT HOME. Something will be wrong with-there’s no way around this.
-Don’t buy a home with future earnings. Don’t count on a bonus or future pay increases to buy a home you can barely afford now. Buy the home with your current income.
-Buy location not condition. The only thing you can’t change about a home is the location. Everything else can be changed at a price, of course. Don’t fall in love with the new kitchen. Remember, that’s somebody else’s idea of a nice kitchen, not yours. And don’t get turned off by an old boiler wrapped in asbestos (yes, they exist). That can be replaced too. Don’t buy the best looking house in the neighborhood. Aim to buy the ugly house in the best neighborhood.
-And most importantly, this is crucial: Make it certain mentally, physically, and financially that you are ready, willing and able to make the leap into buying a home. There’s nothing worse in this business than a flip-flopper. As an agent, I can only facilitate the home buying process. I should not be convincing the buyer to buy a home.
Without a doubt buying a home, especially your first home and especially in Westchester County, is a daunting task. Houses around here are about 3 times the national median price. You’ll question yourself at every turn:
Is the living room big enough?
Will our dining table fit here?
I wish there was a master bath?
Do we need so much yard and who’s going to take care of it?
Why is the stove white and the frig stainless steel?
How much is it going to cost to change the siding and in a couple of years the roof?
Is 1700 square feet enough space?
Are the taxes going to go up?
Am I really spending $600,000 for a 1,700 square foot house in White Plains that needs updating?
Can I get something for the same price but updated in another town?
The list goes on and on and on…
Inevitably, you’re going to question the decision until the end. There’s no doubt about it. The thing you must remember is that this is not the last home you’re going to live in. It does not end here! Or at least I hope not.
{ 2 comments… read them below or add one }
eddy,
the truth is that every home buyer is, for the most part, the same. It’s hard not to get emotional about it buying a home, I understand. I also understand that whether you’re buying an $80,000 Co-op or $1mm home it is still your hard earned money and I should not be telling the buyer how to spend it.
Well said Jaime.
I felt like I just had a good stern talking to. But unlike my princess I’m not mad at you for giving it to me. Everything you said made total sense.
Time to forward this to the wife and see if it makes sense to her too. lol
Great advice that I will be following and passing along. Now magically make our dream house drop down in price. lmao.