Buyers Selling Themselves Short

By
Real Estate Broker with Prudential PenFed Realty, "The Real Debbie Reynolds" Your Clarksville Real Estate Professional, 931-920-6730 TN Broker: 208698

Buyers Selling Themselves Short. I have been showing some buyers qualified for a $200,000 home. Both of them have good stable jobs and they have no monthly payments except their cell phone bills, utility bills and insurance payments. They have been saving money for several years and are ready to buy a home. A perfect buyer, right?

So what is the problem here? They are trying to sell themselves short. They do not want to spend all they are qualified to spend. I have absolutely no problem with that. It is smart to buy on the conservative side but also smart to look into the future a little as to what your needs may be.

They are fixed on payment and have picked an amount that is the “magic number” and this number brings them under their qualified amount by about $50,000. The problem I see is that if they spend just a little bit more they will get so much more and will serve them better if their family should grow (which they are talking about now).

Sure the lower price home will work and meet the bare minimum of their criteria right now. But if they spend just another $20,000, their square footage will grow 200-300 square feet and they will get an additional garage. This is huge. That means when they go to resell, the home will compete more favorably with the rest of the market and probably sell quicker, too. I have said this over and over.

The difference in the two payments is about $100 per month. So today I have spent a good part of the day explaining to not get fixated on a payment amount and but look at the big picture. By taking advantage of today’s low interest rates, they can buy the larger home with more room, an additional garage, inside laundry room and larger bedrooms and closets. These are items that make a difference in resell so then why are these buyers selling themselves short? Being cautious is commendable but buying smart is more commendable. I just hope my niece will take her real estate aunt’s savvy advice.

Tomorrow is the day for the decision and I am hoping I got my point across and their lender’s encouragement will be enough to help these buyers see the better choice. My gut and experience tells me if they settle for the smaller home they will be calling me within a year saying the house is too small and they should have bought larger. The $100 difference will be a thorn in their sides they wish they could pull out.

I really do love working with relatives.

 

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Want To Know What Debbie Has to Say? 

If you are needing Real Estate services in Clarksville TN it would be my pleasure to assist you!

 

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"The Real Debbie Reynolds" at
BuyorSellClarksville.com

Prudential PenFed Realty, 2503 Wilma Rudolph Blvd., Clarksville, TN 37040

An independently owned and operated member of BRER Affiliated, Inc.

Not affiliated with Prudential. Prudential watermarks used under license.

931-920-6730 (office)   931-320-6730 (cell)

                 

 

 

 

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  1. Mary Yonkers 08/18/2012 09:41 AM
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Topic:
ActiveRain Community
Groups:
Diary of a Realtor
Realtors®
Tags:
low interest rates
relunctant buyers
conservative buyers

Comments 20 New Comment

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Ambassador
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Debbie Reynolds
Your Dedicated Clarksville TN Real Estate Agent
Prudential PenFed Realty, "The Real Debbie Reynolds" Your Clarksville Real Estate Professional, 931-920-6730

Barbara-Jo, Well they are going for the bigger house and seem comfortable. We'll see if the seller accepts.

Debbie, Actually, I think being a relative is helping in this situation because she knows I have no hidden agenda just her best interest. My nephew is on board.

Belinda, I thought you were leaving on a much needed vacation. The interest rates will probably never be this low again and I want hem to take advantage of the best deal for them.

Mary, I am in the process of sending them an offer to sign on the higher price home. I will let everyone know how it turns out.

August 18, 2012 10:26 AM
Rainmaker
668,186
Mary Yonkers
Erie/PA Real Estate Instructor
Alan Kells 1-814-881-7548

I have my fingers crossed for them and you, their agent.

August 18, 2012 10:55 AM
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865,350
Debbie Reynolds
Your Dedicated Clarksville TN Real Estate Agent
Prudential PenFed Realty, "The Real Debbie Reynolds" Your Clarksville Real Estate Professional, 931-920-6730

Thank you Mary. We'll just have to see how it turns out. It's going good now though.

August 18, 2012 11:32 AM
Rainmaker
1,759,667
Roy Kelley
Retired Real Estate Broker, Maryland Blogger

Thanks for sharing this story.  It might be easier to let them purchase the smaller home and then sell them a bigger home in a few years.

Have an outstanding week with your camera in hand.

August 19, 2012 05:21 AM
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Debbie Reynolds
Your Dedicated Clarksville TN Real Estate Agent
Prudential PenFed Realty, "The Real Debbie Reynolds" Your Clarksville Real Estate Professional, 931-920-6730

Roy, Ultimately it is their choice but they have decided to go for the larger home. That way they said it would fit their needs up to five years. I am glad they made the choice.

August 19, 2012 06:50 AM
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Additional Information

Debbie Reynolds, Broker, ABR, CRB, CRS, GRI, SFR, SRES- Specializing in marketing, listing and selling real estate in the Clarksville TN/Ft. Campbell KY real estate market area