Wednesday, March 1, 2017

First Time Home Buyer Apprehension - What If You Make a Mistake?

I had a recent first time buyer experience the ultimate in getting cold feet.  In this case the buyers, for reasons I will not specify here, walked away from the deal.  Walking away in this case included a couple of thousand dollars in escrow money.

Buyers do get cold feet.  That is why I always advise sellers to request enough escrow money from a prospective buyer to make them think twice about walking away.

First time buyers are very often afraid of making a bad decision.   This is understandable.  Makes me think of the comment I heard once from a divorced seller who told me "Not all bad choices are permanent, folks!"  While his mistake was not permanent it was a costly one!

The decision to buy a home is one of the most important one a person ever makes and should not be approached without much thought.   While a bad home buying decision is not permanent it can be a very expensive mistake.

There are lots of reasons for not buying.  Prime among these is the long term obligation created with a mortgage.  The ability to pick up and change directions in ones life is severely hampered.   Buying because prices are going up now and in a year or two affordability will be gone.  This mistake was made by many back in the 2004/2005 time frame when the market bubble was intense. 

If your current job is a "move up" position or the potential to move on to another employer is high then being saddled with a mortgage payment is not a good thing!

Still there are lots of reasons to buy a home.  Chief among these is pride of ownership.  Also things like investing in your own property versus paying a landlord's debt (or profit).   Rent is climbing!  

There is the potential of gains in value over time as well. A smaller home purchased today can set one up to move up later in five or ten years.  Interest rates are low right now.   There is the stability created by knowing where one will be living in a yer or three years!

The process of buying a home brings with it a lot of emotional experiences...apprehension, stress, excitement, relief, worry.....and much more!

It is imperative buyers have a trusted experienced real estate agent in their corner throughout this process.   The home buying process is just beginning with the contract.    Remember, in Brevard County, Florida your real estate agent does not cost you anything. 

If you are a first time home buyer in Rockledge, Florida and have questions or concerns, call or text me at 21-693-3850.  I am available to answer questions and provide direction to resources in the area.  There are first time home buyer loans available that may help with the costs as well.