Was it a good buy?

Good morning! Yes, I realize my commitment to blog more often has yet to be realized. However, those topics which I have chosen to comment about have been very timely and on target. It’s not so much that I don’t want to contribute regularly. Instead it’s just that I just feel totally stretched with my real estate sales and by the time I could be blogging, I’m asleep in my recliner.

Anyway, in my last blog I mentioned that I was recommending that homebuyers first determine what they can qualify for coupled with what they are actually willing to pay for house payments. Next, determine how much home those payments will support. And finally, buy the least expensive home in the nicest area available. This seems relevant to restate because yesterday a coworker mentioned that a buyer who had considered one of her listings had instead made an offer on a property she described as, “the most expensive home in a neighborhood of less expensive properties.” She further added that the buyers wanted a home that had been totally remodeled; a home they could move into and begin enjoying immediately.

As I listened to my associate’s story, I couldn’t help but think that that was exactly the opposite of what I have been recommending. Perhaps they hadn’t read my blog. Unfortunately, being the observer of human behavior that I am, I believe they, like so many buyers today, feel there isn’t time to give perfection to an imperfect home. They feel they are just too busy making a living and taking care of their families to add anything extra. And while I would like to disagree, that attitude does make sense. I’ve often made the same analysis when comparing those who are able to participate in political activities to those who are just too busy making a living and raising kids.

But, just because it makes sense doesn’t mean it’s the best approach to buying a home. However, I don’t have to make their house payments or worry as to whether I’ll have enough equity in two to three years when my family needs a larger home or a transfer is in the works. I’m figuring that, in years to come, a typical homebuyer will have to live in a property at least three years in order to break even. Unfortunately, breaking even in three years becomes increasingly difficult when one buys the most expensive home in any neighborhood.

On the news front, the State Legislature has enacted legislation aimed that unlicensed flippers. Although there currently doesn’t appear to be any teeth in the new law, it is a step in the right direction. Also those salespeople targeting homeowners in default have come under the scrutiny of the legislature. More details will be forthcoming.

Until then,

Do Good ….. BE GREAT ….. 110% …..