3 Most Common Fears of Home Buying
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Eric Wei
Eric is a passionate and genuine individual who strongly believes that building and maintaining relationships is the absolute key to success...
Eric is a passionate and genuine individual who strongly believes that building and maintaining relationships is the absolute key to success...
Are there ways to protect yourself and alleviate your fears of home buying? Watch Eric and Mark discuss these strategies.
Eric:
Welcome back to Stay Focused, Focus Real Estate's weekly video blog. And today we're talking about fears of first-time home buying.
Eric:
The first one on the list is overpaying. It's definitely a fear of all first-time home buyers. But one of the things that we definitely like to do first is to make sure that you work with a mortgage lender to understand what your full buying power is. And with the competitive nature of things right now, we really recommend that you look below your price points.
Mark:
Right. And nobody wants to be house-poor. You want to buy it with enough money that you're able to buy furniture and go out to eat and enjoy your lifestyle after that. So that's why we always encourage our buyers to look a little bit below their price range.
Eric:
And I can't tell you how many buyers that we've spoken with a year afterwards, they're just so happy that they bought when they did.
Mark:
Many people revert back to the, "Oh, well, look what happened in 2008. What if this happens again?" Well, the truth of it is, the housing market in Boston probably dropped about 10% in 2008, but leading up to that, it was climbing at about 12 to 15% every year. And it continues to do that now. So that's the beauty in it. Buying a house is usually a long-term investment. So seeing it gain equity over so much time is really what we want to instill in our buyers, is that they're in it for the long-term.
Eric:
What's number two, Mark?
Mark:
Number two is large expenses.
Eric:
So if we look at the age of the homes in Boston here, they're probably over a hundred years old. And so with that, sometimes there can be some large expenses, but one thing that we have, a key tool in our tool-belt, is a home inspection.
Mark:
Home inspection is a great way to figure out what the nuts and bolts are of the house that you're buying. And if you find out that these problems are too much for you to incur, well, then you can always back out after the home inspection.
Eric:
It's a very important contingency that we have in place for home buyers to make sure that we're protected in case there's anything drastic that comes up. Mark, as millennials, we fear the next one here. And what's that word?
Mark:
Commitment.
Eric:
So there's always the fear of being stuck in your current home.
Mark:
Commitment is a big thing that we have strayed away from in recent years as millennials, since we have swipe-left, swipe-right apps, we get our cell phones for one year, we lease cars. I mean, commitment is a big thing that we are shying away from. So committing to a 30-year mortgage can be scary. And many people just think, "What if I move into this home and three years later I don't want to live here?" Well, the reality of it is, that happens.
Eric:
Totally.
Mark:
And there are ways to move out.
Eric:
The resell of your home, as we talked about a little bit before, is, you're always building equity. And so with that, it's always a good opportunity to either sell it if we can, and you can also rent.
Mark:
Right. You don't always have to sell your home right away. And people are landlords all over the place, especially in Boston. So if you have any questions for us leading forward, just drop a line or leave a comment below. And until next time, stay tuned and stay focused.
Welcome back to Stay Focused, Focus Real Estate's weekly video blog. And today we're talking about fears of first-time home buying.
Eric:
The first one on the list is overpaying. It's definitely a fear of all first-time home buyers. But one of the things that we definitely like to do first is to make sure that you work with a mortgage lender to understand what your full buying power is. And with the competitive nature of things right now, we really recommend that you look below your price points.
Mark:
Right. And nobody wants to be house-poor. You want to buy it with enough money that you're able to buy furniture and go out to eat and enjoy your lifestyle after that. So that's why we always encourage our buyers to look a little bit below their price range.
Eric:
And I can't tell you how many buyers that we've spoken with a year afterwards, they're just so happy that they bought when they did.
Mark:
Many people revert back to the, "Oh, well, look what happened in 2008. What if this happens again?" Well, the truth of it is, the housing market in Boston probably dropped about 10% in 2008, but leading up to that, it was climbing at about 12 to 15% every year. And it continues to do that now. So that's the beauty in it. Buying a house is usually a long-term investment. So seeing it gain equity over so much time is really what we want to instill in our buyers, is that they're in it for the long-term.
Eric:
What's number two, Mark?
Mark:
Number two is large expenses.
Eric:
So if we look at the age of the homes in Boston here, they're probably over a hundred years old. And so with that, sometimes there can be some large expenses, but one thing that we have, a key tool in our tool-belt, is a home inspection.
Mark:
Home inspection is a great way to figure out what the nuts and bolts are of the house that you're buying. And if you find out that these problems are too much for you to incur, well, then you can always back out after the home inspection.
Eric:
It's a very important contingency that we have in place for home buyers to make sure that we're protected in case there's anything drastic that comes up. Mark, as millennials, we fear the next one here. And what's that word?
Mark:
Commitment.
Eric:
So there's always the fear of being stuck in your current home.
Mark:
Commitment is a big thing that we have strayed away from in recent years as millennials, since we have swipe-left, swipe-right apps, we get our cell phones for one year, we lease cars. I mean, commitment is a big thing that we are shying away from. So committing to a 30-year mortgage can be scary. And many people just think, "What if I move into this home and three years later I don't want to live here?" Well, the reality of it is, that happens.
Eric:
Totally.
Mark:
And there are ways to move out.
Eric:
The resell of your home, as we talked about a little bit before, is, you're always building equity. And so with that, it's always a good opportunity to either sell it if we can, and you can also rent.
Mark:
Right. You don't always have to sell your home right away. And people are landlords all over the place, especially in Boston. So if you have any questions for us leading forward, just drop a line or leave a comment below. And until next time, stay tuned and stay focused.