Many Home Buyers Now Being Priced Out Of Home: The Solution

17 May 2014
  Lee Amble, Realtor/Columnist/Consultaant

Over the past three years, prices of homes here have risen at a level that many would be buyers can no longer qualify for a mortgage.

The increases have also been seen ininterest rates going up about one (1%) over the last year.First time home buyers and many more in most price ranges are being turned down as prices and interest rates bothcontinue to increase.We have been spoiled the last 10 years with artificially low interest rates, so, now we will have to pay the piper.We should know by now to buy within ourneeds, not our wants.We are now seeing the results of the wants.The greed of the past did not work, it nearly took our country down; in many ways it did.

The Solution: Buy What You Need, Not What You Want!

Size:

This is where some of our biggest savings can come from.I will use examples that would work in Prescott, Az. as far as square foot cost, etc., you adjust for your area of thecountry.An extra bedroom may be a want, not a need.A room of 12 x 12 would be 144 Square feet with an additional cost @ $100 per sq. ft. which would be another $14,400. Another room would be a formal dining room of the same size equaling $14,400 again. I see a lot of foyers that have 50 sq. ft. of waste and some even more which would be$5000 with a total dollar amount of $33, 800 saved in these 3 rooms alone.It would be quite a savings!The sq. ft. cost being used is low as kitchens and bathrooms are where thecost increases dramatically. I would say if you need it, buy it, but if you just want it, pass on some of it or all of it; you be the judge!

Priorities:

Before you go home hunting either on the internet, with a realtor, orfor sale by owner, start out with a list of 10 priorities going from 1 to 10 with 1 being the highest priority andon down the line after that.Then, take it down to the most important 5 items and look at the last 5 as a bonus 5.After seeing a few homes, the list may have to be adjusted.

Location:

The number 1 thing on your list should be location and after that fit the rest of your priorities to that location.Families may be better suited in some areas, retirees may desiresomewhere different and some just want a mountain home or a beach homefor full time and/or part time.The list goes on so you pick yours within your budget.

Size is Bigger, Better:

Not always as related to the above; get only what you need as the rest is a waste and on- going costs of real estate taxes, insurance, maintenance and utilities do add up also.Youget the idea!Last, but not least, the cost of buying and higher payments and ongoing interest, it’s not hard to save a lot of money if we try.

Greed vs. Need:

Greed, well I guess we all or many of us saw firsthand what happened in 2006-2011---not good!Just human greed created one of the biggest recessions in modern day history.Ihope we as individuals and as a country learned our lesson and pass on the greed over need as it is not good for our future generations.We don’t need any more greed as itcreated divorces, bankruptcy, loss of homes, loss of jobs, suicide, sickness, early deaths and much more.Let’s not let that happen again!

One Last Thing:

Kitchens and bathrooms and the fireplace that is rarely used can add an additional $25,000 to $50,000 or more with the many upgrades available.Do we need the upgrades or do they fit into the want category?No matter, how you look at it, we can get by with a lot less if we want to.

Conclusion:
There is so much more to write about on the subject, but if it was much longer, no one would read it.But, I do hope this article will give us all the time to think about need overgreed and need over wants. As you see the small money saving examples could be from $35,000 to $70,000 or more. Savings, will help many more people qualify for a loan ifthey just us some of them. I would like to admit I have also been too greedy at times. I guess that’s how I learned from also being guilty!THOUGHT OF THE DAY:
Vision without action is merely a dream.
Action without vision just passes the time.
Vision with action can change the world!


Written by:

Joel Arthur BarkerThese are only my ideas and vision; you have yours. To some, this may dampen your hopes and to others it may open their eyes to a new world of opportunity. I hope it does justthat!Put this in a 1 to 20 year time capsule and look back at what really happened. Then pass this article along to others as it may help more people see theFuture. Thanks for reading this “Food for Thought” article!I could write a small book on this!I do hope it will give you some things to The call is free and so are my ideas@!

Remember Experience Isn’t Expensive, It’s Priceless!
Selling A Home Is Easy; Doing It Right Is The Key!
Lee Amble, Realtor/Columnist/Consultaant
National Realty Of Prescott
Lee’s Cell 928 533-4455
Jan’s Cell 928 533-4488
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