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Have We Forgotten Something?

Over the past few weeks and months, the media,  so-called experts and most of our friends and relatives seemed to have almost soured on buying a home at this time. With fear of a fragile economy and high unemployment rates, who can argue with caution?

When the pervasive sentiment among even real estate and mortgage professionals is that home prices will continue to move downward and that mortgage interest rates don’t appear to be jumping significantly any time soon, the question remains… “Why would anyone that doesn’t have to buy now, buy now?”

One commenter to a previous blog post even went so far as to challenge the entire industry for promoting the “hurry up and buy” approach by asserting that buyers who listened to that advice six months ago are bemoaning taking that advice. That made me think: “Are people who bought six, eight, ten months ago kicking themselves because their home is worth less now than when they bought it?”

I had my team call some of our recent buyers and this is the feedback we received:

“Last year at this time, I was cooped up in a small apartment. Today, I am planning our Fourth of July celebration with 25 friends and family in our new home. Regrets? Are you kidding? We couldn’t be happier.”

“We are glad we now have a place of our own. We have a few friends looking to buy and we are helping to get them excited. Five years ago, we couldn’t afford it….now, we have our American Dream.”

“We were crammed into my in-laws’ home with no real privacy or room for the kids to just be kids. Now, they have a backyard to play in and they have settled in to their new school and made new friends. We couldn’t be happier.”

“Yeah, I realize, I might have been able to buy a home for $10,000 less if I waited, but there are two things to remember. One, what memories would we have missed if we weren’t here? And two, I am not selling my home now. Who cares what it is worth until we look to move again in 5-7 years? By then, we believe everything will be back to normal. Right now, we have a payment we can comfortable manage and we have a home to build roots and a foundation. I would urge everyone to do it, if they can.”

A home does remain a good long term investment. However, first and foremost, it really is a place for pride, peace, preference, and pleasure. We need to be reminded that the emotional component to buying a home may be worth more than simply the financial benefits. And from a financial perspective…who in your life is a better financial mentor? Donald Trump or Uncle Joe? Warren Buffet or your local newspaper writer who makes $30,000 a year? Remember, conventional wisdom breeds mediocre results (at best).


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4 replies
  1. Tami Vroma
    Tami Vroma says:

    Are you kidding me!! I have buyers right now that wish they would have bought 3 months ago! The Grand Rapids Real Estate market is hot right now. I have 3 different buyers I have been working with who have all been out bid on a home in the last week! They are frustrated but to me it is a good sign no matter how long it lasts!

    Reply
  2. Tom McGiveron
    Tom McGiveron says:

    Great article. Darryl Davis just recently mentioned in our company training that we’re (real estate industry professionals) not just helping people buy a home, we’re helping them get to “their next level”. Buying a HOME is a “next level”. If you want the fruit of life, you’ve got to go out on a limb to get it – period. Life is all about LIVING IT. No risk, no reward. The NEXT LEVEL is full of rewards as noted by your buyer feedback. Thanks for the great article!

    Reply
  3. Ricardo C
    Ricardo C says:

    I’m a loan officer with a big mortgage Bank, after reading about what Some experts are saying about not being the time to purchase and all the jiara, jiara,…I called 3 of my past closed clients that have homes closed about a year ago to know what comments and feelings about the purchase,…the common denominator was the same across the board,. first they where happy of the new purchase, the freedom, the sense of pride,. the get togethers, the BBQs ,..no one complain about it, I mention about the economy and the current real state conditions and they show a good knowledge of that but it was second nature to what they have accomplice, one of then mention to be happy at a home they loved and making payments on there own home and not on the land lords home and mortgage.

    Reply

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