February 13, 2017
I want to LOVE my house! Isn’t that what we all really want in a new home?
In Montclair, as is the case in most of New Jersey, we are experiencing what would be described as a “seller’s market” in the real estate industry.
That doesn’t mean a seller can ask any price, and get it, for a home on the market. It also doesn’t mean you have to pay more than you should or want to, or that you have to make concession on repairs.
Right now you may be thinking “what would entice anyone to pay more than a house is worth?” Cash buyers, free of the boundaries set by financing that insists on an appraisal, have been known to fall so in love with a property they get carried away and bid higher than market value.
If you are paying cash for a property and find THE ONE you just cannot live without, and you plan to live there a good, long while, it might not be a bad deal. For you. For that circumstance. But, hey, that just isn’t the case for most people. Most people need and want the best deal they can get.
But, since you most likely will find yourself in competition with multiple offers on any given house you are considering for purchase, here are a few suggestions to make sure you LOVE your new home without buyer’s remorse.
· Do not lose your head or blow your budget because of multiple bids on a property
· You hired a REALTOR for a reason; listen to their advice
· Set a monthly budget for home expenses that you can truly live with
· Be realistic about your needs/wants as you house hunt
· When financing a purchase, consider other budget concerns, not just the maximum a lender qualifies you for
Let’s look closer at that last piece of advice. When you apply for a mortgage loan, there are many expenses that are not considered in the equation of determining what the loan company is willing to lend you. Those expenses do still exist however, so it really is in your own best interest to curb the impulse to “buy to the maximum” of your ability. One, two, even three hundred dollars a month less in mortgage payments won’t substantially change the amount of house you can afford but it might make a big difference down the road in your total financial picture.
Giving yourself the best chance in multiple bid situations is knowing your limits and offering your highest and best right from the start. Have all your paperwork in order, make sure your closing costs are covered and you are prepared to write a contract when you see that perfect property.
Oh, before I forget, did I mention that the REALTOR you work with makes a big difference? A seasoned, experienced pro watching out for your best interests is one of the finest investments in real estate you can make. Call me. Together we’ll seek and find the home you can FALL IN LOVE WITH!