We recently developed a lead with a motivated prospective buyer couple. They have been paying rent for the same rented house, in the amount of $1250/mo., which provides them with a small three bedroom, two bath home. There is barely room enough for this couple and their two children. Together the couple bring in good income and have a good credit score. They would love to buy a home of their own. They would prefer a new home.
Now here is the dilemma. Both husband and wife would love to buy a new home in the McKinney area, and ideally the children would stay in the same school. They would like their house payment to be no more than $1650 per month. They are well informed clients and appreciate the value and the tax savings that accompany home ownership.
The problem is that their McKinney dream home, having 4 bedrooms, three baths, and a media room has appreciated in price from $225,000 two years ago to $290,000 today. There are a few new home builders who are building exactly what they want, but today’s market value is about $70,000 more than what the couple want to pay, which is only about $220,000.
What the couple wants and can afford is available right now, but it is located in another town about nine miles further north, in a totally different school district.
So, their decision for the moment is “We think we will continue looking here in McKinney, maybe at a used home in the same school area.” They do not want to go above the target of $1650 per month.
A hot, appreciating home market leaves many would-be buyers frustrated and perplexed at what they can afford in the community of their choice. They do not like it! What they really want is not available in their price range in the area they want to live in.
Settle for an affordable home which is older and smaller than they want or move further out where they can afford their dream home in a new community and a new school district. We all make similar choices every day like which cut of meat to choose or which car to buy. Possibly the choice is less painful than the choice of where to buy a home. One thing is certain. There is no purpose looking for their dream home in a neighborhood where home values have drastically increased. Further increases in value only leads to farther frustration. This couple like all of us must make some painful choices—seeking the best possible choice now. Waiting will only make the situation worse.
Can you save fast enough to keep up with a home appreciating 20% a year in value? Now may be the best time for you to make your move whether you are a first-time home buyer or wanting to move to a bigger home for your family.
Call today and let me help you with these decisions.