This article shows an example of a buyer trying to take advantage of high supply and pricing deals but losing common sense and eventually making a very bad decision. How often have you seen people get caught up in major sales and buy something they don't even want because it was such a good deal? This is happening a lot right now and it gets really bad if a person waits three years and finds they can't afford to sell the home at that time. Then they continue to be stuck in a home that they do not like when the could of really enjoyed and been proud of a home they bought in the first place.
Looking for a diamond in the rough is great. But make sure to keep your goals in mind when seeing all the Temecula and Murrieta home listings and price drops. Don't be shocked if someone doesn't come down in price. Just make sure your Murrieta or Temecula real estate broker does the needed property research and helps you to discern a fair or even aggressive price for that ideal house.
Buying a Murrieta, Temecula, or Menfiee home in a buyer's market can be very challenging for the exact reasons people assume it will be simple. Don't forget that the goal is to get the best home that meets your goals and is the best investment for your family. What are some buyer market benefits?
Large number of home listings
Ability to negotiate price and terms
Brutal competition between sellers
No matter how you look at it those bullet points are a good for you, right? Believe it or not this can cause hesitation and concern for buyers. How so? Let's say you find the most fantastic Menifee home in a superb neighborhood on a great cul-de-sac street and with all kinds of upgrades. You love the floorplan but the owners won't move on price and two streets away is the same floor plan, but not as nice of a house in terms of lot or upgrades, and the street isn't a cul-de-sac. However, the the price is 30k less. And , even better is another model match with no upgrades, stained carpet, and priced a further 15k less.
You would like to get the first home but the other party won't come down in price. Honestly, it looks to be priced reasonably when considering all pluses. In fact, since it is a aggressive market, it is priced lower then it has been in years. But this is a buyer's market and why should you have to pay 45k more?! With just an additional 10-15k, you think you could rehab the bargain house and still have a sharp house. So, after a lot of thinking you offer on the lowest cost model match and plan to fix it up. And, by paying 45k less and spending 10k, you save 35k in theory for the same neighborhood and house just a few streets away, right?
While this seems like a good idea once you're in the house you will have a hard cash expense to make repairs versus having an increased mortgage payment. So you get a 2nd mortgage or use your nest egg and put 10k into the home and get all new carpet, paint, and some tile in the bathrooms. That's it and you have used all that cash. You also stay there for an average of 3-5 years and have elbow grease projects every single weekend. While initially fun, they get old fast and you eventually become tired of cars buzzing through the street and constantly dream you had bought on a cul-de-sac. Due to all this, you don't invite buddies and your family over because you want to get it all fixed and so you aren't enjoying the home as much as you thought.
This sounds worst case but I have seen this several times this year already. The sad part is 35k (45K 10K) more would only cost an average of $210 more a month. And, over 5 years that will equal the 10k you put into the bargain home and you have had to work every single weekend, have not enjoyed your investment, and never even had a weekend BBQ!
Also, no matter what you put into the home, you can never create a home with the preferred lot and incredible cul-de-sac location. Those could be your children playing neighborhood ball safely. So, after 3 years of worrying every time your children go out to play you decide to sell. However, the market is rough and people are picky, only looking for that perfect, upgraded, cul-de-sac home you passed on! So keep this all in mind and rewind the 3 years of hard work and make sure you keep this mind while you start shopping today!
