My Buyers’ Most Frequently Asked Questions…Answered!

My Buyers’ Most Frequently Asked Questions…Answered!

Things Everyone Should Be Talking About Series

Buying a home for the first time can be confusing. That’s why the tips and strategies you’ll find in my 8-week series will set you on the right path. It’s our own unique approach and a “behind the scenes” glimpse of what you should look out for and consider when starting your own search for a home.

Buying a home, especially if it’s your first time, can be complex and confusing at times.  But, you are not alone!

Just like most first-time homebuyers, you want to make sure you don’t do something wrong. Or, you might worry that you don’t know what you don’t know!

I hear from my clients all the time about their concerns and questions when buying a home in today’s market.  That’s why we’re here to provide answers to some of the most common questions we get so you can become better informed and more reassured.

The questions swirling around in your mind are likely the same ones other buyers, like you, want to ask too.  And, more than likely, it was the same questions that buyers who went before you have also asked!

I have heard your question before, and even if I haven’t, no question is ever a “dumb question,” so ask away!  And, if you have any questions that aren’t listed below here, reach out and ask!

Even though each buyer’s situation is unique, you’ll find the question/answer sections below helpful in giving you some insight on what steps might be best for you.

Plus, maybe you’ll also learn something “you didn’t know you didn’t know”!

Q:  How do I know the property value will increase?

Although there are no guarantees, there are clues and historical data that are indicative of future performance.  Homes by campus and downtown tend to hold value, since the UF Campus is our “beach front property” here in Gainesville.  Also, you may have noticed a shift West-ward.  The Newberry, Jonesville area in continuing to increase in value, as well.

If you know the area is changing and is going to increase in density or desirability, you are likely to see an increase in value over time, perhaps more than other areas.  We always tell our clients to not go on hearsay, but look at projects that have actually gone through the planning, development, and funding stages.

However, you still need to buy smart — each neighborhood can be different and it’s important to understand that so you don’t overpay. 

There is an old saying that says you make money in real estate when you buy, so focus on that and you’ll be fine when you sell.

Q: How long until I know if my offer is accepted?

This answer really depends on the specific situation of the home you are bidding on. 

In more competitive neighborhoods where sellers are expecting to get multiple offers, most sellers want to give their home full market exposure to get the highest price possible. That means sellers tend to have their own deadline for any and all offers.

 If a seller is not anticipating multiple offers or perhaps just wants less inconvenience or a need for a quick sale, moving quickly with an offer and having a deadline for a response can be a useful strategy.  

When we write a contract, I try to make sure to give a deadline that allows for enough time for the seller to respond, but not long enough for another offer to swoop in.

Again, it depends on the particular situation.  I have found that about 8-12 working hours (not sleeping hours) is often a good time period for a deadline.  Often times, this could mean avoiding a bidding war.

But you’ll have to make it worth the seller’s while to want to take their home off the market quickly—perhaps a higher price than asking and favorable terms such as no or short contingency periods.

In some situations, a deadline will not make the seller respond, so be prepared for that outcome as well!

Q: Is it worth it to find something faster when interest rates are low?

No!  Don’t let interest rates dictate your time to buy a home.  Yes, interest rates have increased over the last 6 months, but I always advise my buyers to buy when YOU are ready.  Don’t wait for the market or interest rates to change.

Buy and sell when the time is right for you. We do have a cyclical yearly market, but always go based on your own timeline and schedule. 

One thing we know for sure—there will always be homes to buy. And, when interest rates rise a lot, that often times leads to a slight cooling of prices.

Q:  If the house I want is $20k over my price range, does that mean I can’t afford it?

Maybe, maybe not…

Try to focus on your monthly payments, not just on a purchase price. By doing this, you’ll know what you may or may not be comfortable paying for a home every month.

In other words, focus on the fact that you want to pay, say, $2,500 per month on your new home and NOT on a somewhat arbitrary price point.

Why?

Because for every $10,000 change in price, your monthly payment only goes up about $50-100 per month.  When you look at it that way, you might be able to afford the home of your dreams or that home you just fell in love with.

So, that extra $20,000 price tag might equate into an extra $100-200 per month.  Is that something you can handle? If so and it’s a home that has everything you’d ever want, go for it…as long as it doesn’t break the bank or make you need to change your lifestyle in any way that is uncomfortable.

On the other hand, if you buy something not as nice for less money, you might have to spend money on repairs, etc. You’ll need to weigh the pros and cons of each situation when determining what is affordable to you.

Next week is one of our most favorite articles -- Is the “Paradox of Choice” Derailing Your Home Search? We tell you the secrets from this book that can help you focus on making a decision and not being overwhelmed by too many choices. You don’t want to miss it!