New Home Buyers:
I know, it all seems frightening and confusing - so let's discuss feelings.
This message is certainly not a guide into analysing what you can afford, how much to spend or even arranging your first mortgage. Sure I have assisted numerous first time buyers and people who have bought 3 or 4 homes in all of these areas and more - but there is plenty written on this - and I find it best to assist each person individually based on their own needs, savings, plans, and goals.
So what have I found real estate buyers are feeling and how can I help a little.
Of course there are the obvious things: -- being pushed or rushed into a major purchase is the last thing anyone needs or wants. You will usually know when you have found the dream home you want or a close enough compromise. So trust your agent to show you whats affordable and available. Allow your banker or mortgage broker to guide you on mortgage rates, terms and payments......and together we can review all these items and I can provide you with a little insight on how to save on interest rates and pay off your mortgage a lot faster with little or no pain while saving literally tens of thousands of dollars plus other good stuff like that.
So what are your true feelings when placing an offer and finally buying a home ? Well TERROR comes to a lot of people minds -- but lets look at this carefully.
FIRST: you are buying an investment that has been carefully analysed and thought out. ---- A banker or mortgage company have reviewed your income and pre-approved you for a specific amount. You know you can afford it. Remember you are building long term equity that you can never, ever accomplish while renting. You have discussed this with friends and family and given a lot of thought about the entire process.
SECOND: Your agent will show you whats available in several areas and different price ranges - so you are buying with knowledge and insight. We will show you what other similar homes have recently SOLD for - so you are making an offer based on a true business decision - not just a gut feeling.
THIRD: Remember, It is actually safer to buy then rent in terms of short and long term security. Guaranteed, promise and for sure - your rent will always go up and you are never earning any savings or value with your money. When you buy - your payment amounts are set for a specific period of time. Just think of it - you know your monthly payment will be the same for the next 1, 2, 3, 5, 7 or even 10 years depending on what you choose. So NO yearly rent increases!......and you are building value in your home and future.
FOURTH: If you were to run into a little financial trouble -- buying is actually a safer route. If you bought a home the mortgage company or bank will want to work with you and assist you in arranging a payment schedule. Truly, no one wants to take your home away and they will look into every possible solution to assist you. Many banks will now allow you to even miss a payment or two. The key is to contact them immediately and let them know whats happening. DON''T WAIT FOR THEM TO CALL YOU. Depending on your equity there are several long and short term solutions available. So discuss the situation and let them tell you your options. In the same scenario if you are only renting -- you will receive eviction notices and be out in a matter of months, at best. So buying is even safer in bad times.
FINALLY: WELL we are now down to the BIG step. The purchase.
It happens every time, people are often afraid to sign. They feel panicked and are wondering if they made the right decision. They are terrified the offer will not be accepted and even MORE TERRIFIED that the offer will be accepted.
Here is the key. You know what you are buying and that you can afford it - or your agent and or bank would not let you do it. You and your agent have done your home work and you know the approximate value of the home. A home inspector will assist you in checking for major problems. And most importantly you are making an informed decision. So "try to be gentle on you selves" as I always tell my clients.
Heres whats really going to happen: If the offer is accepted - you will feel nervous and perhaps frightened. There is a thing called buyers remorse - meaning a feeling of dread for buying and you may want to back out or ask your agent can we cancel? I always tell first time buyers, ahead of time, this is exactly how you will feel and not to worry. Let the feeling go through you and remember you bought with knowledge and planning, it was not a whim at a used car lot...................and once you let these bad feelings pass -- within a few days you will be REALLY EXCITED about the purchase and you will not be able to wait for the closing date.
I have had many, many buyers tell me this is exactly how they felt and thanked me for warning them ahead of time! Remember, you will be happy for many years to come and financially rewarded down the road.
I am proud to be approachable, patient and helpful to clients. In 24 years in the business I have ALWAYS been able to face every client after a deal. Best of luck in your purchase experience and feel free to contact me if you have any questions.
Steven Feld, Century 21 Atria, Real Estate Sales Representative.
Cell: 416-836-8292 email@example.com