BUYERS - Stick to your guns: Egos -vs- Experience

Are we all mad...

...or have we learned our lessons?

Yes, here it is!  I don't often show it...but I do have one! 

TA DA!  My soap box!

I continue to bite my tongue when the conversation about "what we really need" arises.  Our collective lives seem to have become luxury-necessary.

• We need a flat screen in every room.
• We all need a German built, leather clad SUV with more technology than the Star Ship Enterprise...only slightly bigger!
• We work so hard that we need both of our time shares!

Now please don't think for a minute that I don't "want" for more too.  I do, and I'll continue to work hard for it.  But with that in mind, I most certainly have learned my lessons over the last 8 years. (Since the market took a dump!)  Now, however, I'm starting to see folks falling right into the same old patterns of over extending, and our fine lending institutions are standing at attention, waiting to oblige.

Today, via industry junk mail, I received a solicitation for Stated Income Mortgages!  In simple terms, that means, "Honestly Mrs. Banker...I make $250,000 per year! Will you lend me more than I can afford?...PLEASE?"  Bingo!  Here's your mortgage!

Today, I also heard another in a long line of commercials from our auto industry, handing out sub-prime auto loans.  0% interest?  How do a lender make any money on 0% interest?  Easy!  Your new Ford pick-up cost $55,000!  There's enough margin in that transaction to cover commissions, overhead, profit, and to subsidize your loan!  Seriously though, who can even afford a car payment when you 5 year loan payments are $1,100 per month?  Ask and you shall receive!  At 0% interest, why not stretch that payment out over 7 years...or let's just do 10!  OR, I'm no longer going to make my mortgage payment anyway...so now I can make that huge car payment more comfortably!

Helpful Tips for Home Buyers:
Don't let the moment or our always encroaching egos sway you from standing firm on tried and true home buying strategies.

• Identify and write down your needs
• Identify and write down your wants
• If you need a 4 bedroom house because you need three rooms and an office...you don't need a 4 bedroom home! You need a 3 bedroom home with an office/den/loft etc.
• KNOW THE DIFFERENCE
• Know your budget, including:
• Closing Costs
• Principle Payment
• Interest Payments
• Property Taxes PLUS Assessments/Mello Roos
• Hazard or Homeowners Insurance
• PMI (Private Mortgage Insurance) on some loans
• Ask your agent if homes in your area are closing at, below, or above asking price.
• GET LOCKED INTO A LOW INTEREST, FIXED RATE, 30 YEAR (or less) LOAN
• In this market, ALWAYS bring your best offer.  You may not have time to make another.
• Do your inspections!
• Don't not do your inspections!  ;  )
• If you're stuck in a situation where you continue to submit offers and still can't get one accepted, CALL ME!  There's something wrong.  I have effective strategies that help get offers accepted.  If you're working with another agent, have that agent ring me.  I'm always happy to share.  I learn from many agents and I'm sure some can learn from me!
• Don't forget to look at new homes, with one caveat: E-mail me, call me, or send smoke signals before you go.  In 2011, 35% of my business was in new constructions.  Leveraging that experience and those relationships to your benefit can save you tens of thousands of dollars, but costs you not a cent.  Typically my commission will come from a separate line item within a marketing budget rather than having it tied directly to the home in contract.  BUT....if you register with the builder before you call me I can no longer act as your advocate; your negotiator.

Owning a home ought to be a joy.  Over the past ten years or so, it's more often become a nightmare.  Learn from our societal mistakes. 

• Have a plan!  
• Know what you need.  
• Know why. 
• Stick with your plan!

" 

Wisdom comes from experience. Experience comes from making mistakes.

"

 ~ Unknown

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.