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We decided a year ago that it was time to start looking for a home. Renting no longer makes financial sense. Of course, renting was better when it was just the two of us. Now things have changed we begin our house search.
Our household has grown to include more than a handful of people. The wife is looking forward to jamming out while cooking and not having to worry about who is watching television across her shoulder. For me, when I know I have to carry my tools down several stories only to work in my car and do the process all over again, I find it harder to stay motivated.
We are in the initial part of the process with the assistance of our energetic, goal-oriented, and amazing real estate sales agent, but things are not going smoothly. Every real estate purchase seems to come with a financial or emotional catch.
Here are five reasons why house searching is terrible:
Table of Contents
Limited Supply
There is a 95% probability that the homes you want at the price you want are out of your price range no matter where you live. This can only mean one thing for prospective homebuyers: limited options.
There may be a variety of explanations for a current homebuyer’s unwillingness to sell. Yet, there is one thing that the majority of them share, and that is the high interest rate.
A coworker indicated he wanted to flee the chilly weather and relocate south when he announced his intention to retire at the end of the year. The surge in borrowing rates has made him very unwilling to sell, contrary to his original plans.
Why, I asked him?
Why switch from a 2.45% to a 6.9% interest? This would have been obvious if I had the ability to foresee the future and knew when the interest rate will decline when I retired. He claimed that doing so would be equivalent to handing the banks my pension and “something else” if you know what I mean.
High Demand
Because of the limited supply, prepare to be in a bid war. You might have to wait in line to view a property, depending on where you reside. It brings back memories of the World Wrestling Entertainment Smackdown event I attended with my son.
I may have exaggerated a bit, but you get the idea.
According to industry sources, the second quarter is the year’s busiest three-month period for home sales, buyer interest, and listing activity.
Many prospective buyers have become discouraged as a result of the record-high prices and rising interest rates. Only time will tell, particularly with a predicted recession just around the corner.
Financial Strain
As far as I can tell in such a market, there is absolutely no space for negotiation.
Baby boomers and wealthy homebuyers are making large down payments to purchase a house. They don’t always investigate properties because they are investors and don’t intend to live there. And I, along with many other millennia’s homebuyers, cannot compete with it.
We looked at roughly five homes, and two oh them met our needs in full. We chose not to act on impulse and instead remained on the sidelines so that we could get a better understanding of what we’re facing as we continue to increase our downpayment.
After being in the market after two days, both of these properties were sold for an average of $60–70k more than what was originally listed. Think of the things you could do with an extra $60k!
Let’s say you opt to refinance when the interest rate drops to 3%. Your return payment will appear as follows:
On the basis of the loan’s term, the initial $60k becomes $91k. Let that synch in.
Emotional Aspect
The largest investment a couple will ever make is probably the purchase of a home. There may be a lot of stress and worry associated with this financial commitment. When searching for a house, delaying action when you feel a connection to what could be a great property can be emotionally draining.
We have decided not to bring our children to any house openings because of this. My daughter can easily picture how her room will be organized, how her gymnastics equipment will be put up in the basement, and how far she will have to commute to school.
But, she is oblivious that there is more going on. My son, on the other hand, is content as long as he can play video games and play outside freely. No worries there.
Future Uncertainty
We’re not to concern about job security and income since we both work in the public sector. I’m not implying that we are job-proof like those in the private sector. It’s simply less common to see.
What comes in mind is not having a clue what to expect.
A friend of mine bought a lovely home with plenty of land for gardening and space for the kids to play a few years ago. He was a handyman who didn’t mind getting his hands filthy. he hired a company to do the siding and roofing, and he did the most he could to renovate the house.
A year later, hurricane Sandy came to our city, and a large tree fell on his home, causing some of the structure to be destroyed.
Thankfully, nobody was harmed.
That is just one example out of many. So aside from being vigilant and living within our means, what more can we do?
Bottom Line
The process of searching for a house to live can be challenging and stressful for a number of reasons. The emotional attachment, the unpredictability of the future, the financial aspect of any unexpected events and the competitiveness of the property market are a few of these.
In the end, I am confident that with time and patience, we will be pleased with our purchase. And if you’re in the same situation as me, I wish you luck.
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Gio founded TheGrowthFocusedGuy in January 2020 because he was fed up with debt.
His mission is to document his journey to Financial Independence in order to motivate and inspire others to get out of debt and begin building generational wealth.
