Are you frightened of home ownership and all it entails? We recently closed on a property with a buyer who admittedly was on the verge of vomiting at every step of the process. From the time she submitted her offer, to the closing table, just the thought of never being debt free again by carrying hundreds of thousands of mortgage debt, was downright terrifying to her. But we got her through it, and now she is settled in, and her finances are under control again. She couldn’t be happier. But it took a team of specialists to get her there, a team who took the time to listen to her concerns, providing empathy and experience to help her overcome her fears.
Here at Global Property Systems we did some research on what makes a buyer scared of jumping off the rental roundabout and into home ownership. We discovered that many are terrified at the thought, when we asked a buyer who fessed up to being scared - until they met us, of course! But what were the main reasons for their fear of home ownership?
Not having enough money and end up being house rich and life poor was without a doubt the top response. However, once they had had the chance to chat with our mortgage guru they were much better prepared, with no surprises in store. It was interesting to us that of those who were already pre-approved when they came to us with a home value range in mind, none, absolutely none, were fully informed of how closing costs differ from county to county. Others had absolutely no idea of how much they could afford, but had a good idea of what they wanted. Once their finances were discussed, it turned out happily that they could actually buy in their dream home price range.
Some others had their bubbles burst, but better than to find your dream home and not be able to afford it. That’s a hard lesson to learn. What we learned from this was to always get a local mortgage loan officer who understands the market area. We also happen to know several wonderful real estate attorneys here in the litigious State of New York, who are also excellent at explaining what new buyers need to be aware of prior to making an offer. They don’t charge for this service, as it ultimately saves them money as there aren’t any unknowns brought to light during a transaction. They are also a great resource should something unforeseen such as a buried oil tank or unclear property lines pop up during the process.
The second biggest fear we heard about was also linked to finances. What if a crisis happens? The roof needs replacing, or the house gets flooded, the furnace blows up, or the hot water heater leaks? What if I lose my job? Then what happens? There’s an answer for all of course, but It's normal to be scared and for it to seem like a very big deal. Owning a home means living with a lot of responsibility and uncertainty, but just knowing that a house without any problems doesn't exist, you have to decide what you can live with. It helps if you have a good REALTOR® and lender who can teach you things. It also helps to ensure the building inspector you hire prior to signing on the dotted line is well respected when you actually call some of their previous clients for feedback. Don’t worry about paying too much for a home either. Your deposit is protected in a clause in the contract should the house not appraise. The bank simply won’t give you the loan, and you will get your deposit back.
Ultimately the magic of owning your own home overcomes the sum of all fears. If you're someone who analyzes and thinks about things a lot it's natural that you're going to be stuck on all of the "what ifs" and "what have you" regarding making the biggest purchase of your life.
There's so much that you don't know and so much that you don't know that you don't know. But honestly, you can't really know everything in advance. As long as you have the right team of experts at your side, and you listen to them, you’ll likely end up dealing with the stress and having the time of your life.
Here’s some quotes from some of our former scaredy cat clients:
“Honestly, I was still scared a year after buying my house. Now, 3 years later I know it was an incredible decision”
“I've now been a homeowner for a couple of months, and have involved me having the most fun of my life. All the work and stress was worth it (so far)!
“It was terrifying. I still think about handing over that check sometimes.But, I now own a house free and clear that I can never be kicked out of (reasonably).
It's the periodic repairs and the lack of a good savings account now that scares me, but I've had my own place for five years and you keep showing me how the value has continued to increase. So that's good.”
“Won't ever forget the morning I drove up and down the road trying to find my loan officer's building, about to sign my life away, keeping Zeppelin's "Hats Off to Roy Harper" on repeat because it was so surreal. But I'm literally thankful everyday for this house and property o'mine.”
“We had saved and saved for years. We were happy and relieved to finally be able to buy a place.”
Still got the shivers? Let’s chat. We have the ingredients and a great spell to make it happen!
Take a deep breath, and give us a call. 914-425-5384