Since the 2007 recession, there has been a shift in the way consumers think and act. Nowhere is the shift more evident than in the homebuyers of today’s real estate market. In today’s real estate market, homebuyers no longer feel certain that their home purchases are bulletproof or foolproof.
Why Would You Buy A Home?
“My dad always said ‘homeownership is your best savings account’,” said one of my clients, 92-year-old Dorothy Sall. “When I bought this home in 1988, I bought it for $38,400 and now I am selling it for $219,000!” she said as she recently accepted an offer on her 3-bedroom 1-bath home in East Eugene. Dorothy enjoyed the longtime upward trend of real estate investment over the years.
Understandably, baby boomers and millennials are looking at buying a home differently these days. Many economists and analysts have pointed fingers at the key players in the homebuying process — appraisers, lenders and banks, as being responsible for the severe economic downturn. And with home prices having fallen faster and farther in Lane County since 2007, today’s homebuyers are deciding to buy — but only if they can buy smart.
In previous years, buyers often chose a Realtor who represented the house they wanted. However, doing so waives the opportunity for valuable independent counsel from a buyer’s real estate agent.
Realtors Are Homebuying Experts
The first step to buying smart in today’s marketplace is to surround yourself with industry experts. Find the Realtor, lender, inspectors, CPA and attorney who have the expertise for your plans. Carefully choose your advocates based on their depth of knowledge specific to the home/property you want to purchase. The Realtor of choice should be experienced in the price point and the geographic area where you are looking. The inspector should have expertise in the age and type of home you will purchase. And, choose the lender who has tailored and structured the terms of financing around your specific financial circumstances and plans.
Work with Your Realtor on Resale Estimates
Next, consider the resale at the time of your purchase. The “die is cast”once you purchase a home. If you overpay at the time of your home purchase, it will be difficult to financially recover at the time of resale; you would have to find an equally naive buyer to overpay at the time you sell the house. Working with a skilled Realtor will ensure that you make a fact-based decision on what to offer on a home. The Realtor will defend your resale and help to reveal anything that may significantly increase or decrease future demand and desirability of the home.
Understand Your Home Investment
In addition, the smart buyer puts emphasis on floor plan and livability, and focuses less on a particular square footage or bedroom and bath count. The Internet is an excellent tool for locating a home. But much like dating websites, valuable opportunities can be overlooked because of search parameters that are too specific. By purchasing the right floor plan, you will prevent ‘overbuying’ and maximize your future resale.