Real estate pros across America say wannabe homeowners are suffering from stress after failed attempts to consummate a deal and escape their rental.
“These are folks who went through agonizing bidding wars and still came up empty-handed. They’re jammed into little apartments, longing to be free of landlords. But despite high mortgage rates, they continue to struggle in hopes of bagging a house,” says Merrill Ottwein, a veteran real estate broker in Illinois.
Because of all the anguish homebuying now entails, Lora Cusumano, a Long Island broker, says that more purchasers are seeking to stay in their first property for years to come.
“People used to say they wanted to buy for three to five years. Now they’d like to remain for at least seven to 10 years,” says Cusumano, president-elect of the National Association of Exclusive Buyers Agents (naeba.org).
Another factor causing buyers to think long-term is the desire to put down roots.
“Due to the pandemic and years of living virtually through social media, more people now long for in-person engagement with their neighbors. They want to find a community where they can settle down for years ahead,” says Cusumano.
Of course, given high prices and a shortage of property in desirable areas, it’s still tough for most buyers to obtain a house where they’d enjoy living for years.
Here are a few pointers for buyers:
-- Itemize what you love and hate about your present housing.
During his four decades in real estate, Ottwein says he’s been struck by the intensity of peoples’ feelings about the place where they live.
An assessment of these feelings is a good jumping-off point for setting priorities.
“First, write down the good and bad in your present home. Then make a list of features you’ve got to have, would like to have or are willing to give up,” Ottwein says.
“When you have a strict affordability ceiling, you’ve got to be mindful about what’s imperative to you versus what you can surrender,” Ottwein says.
-- Seek to avoid a punishing commute.
Ottwein says some house hunters make trade-offs they later come to regret.
For example, budget-challenged buyers sometimes mistakenly accept a punishing commute to an outer suburb to obtain the ideal house they seek.
“We often hear buyers say they don’t care how far they have to commute to get that big house with all the bells and whistles. Then they call us back just a year or two later, complaining that they can’t take the long drive anymore,” he says.
“Any commute over 50 minutes each way gets old real fast,” says Ottwein, co-owner of a family-owned realty firm that caters to relocation clients.
“A lot of people rationalize that by accepting a long commute, they’re helping their families live better. But because they get home so late, their families actually suffer,” he says.
-- Pick features early when buying a brand-new home.
If you decide to buy in a new subdivision, you’re likely to be faced with lots of trade-offs before your contract is even written.
“Within the standard price, some builders give lump-sum allowances for anything ranging from lighting fixtures to appliances to landscaping to kitchen cabinets. Everything else over and above the allowance costs you extra money,” Ottwein says.
These choices should be made before the sales contract is written -- but not under pressure from a hurried homebuilder or salesperson.
“To make really valid selections, you probably need to dedicate a full day to looking over your alternatives,” Ottwein says.
Procrastinators may discover belatedly that they’ve gone over budget to fulfill a strong desire for, say, quartz countertops in the kitchen.
Money-constrained buyers who confront hard choices may wish to defer those items that can be readily installed later, such as upgraded landscaping.
-- Question your willingness to buy a fixer-upper.
Given your budget ceiling, you may think purchasing an older home in poor condition is a smart way to shoehorn yourself into a coveted community or to obtain the largest possible property with limited funds.
But Ottwein cautions that fixer-uppers often require vastly more money and effort to repair than would-be buyers believe.
“Where there are problems on the surface, there are frequently much bigger problems behind the walls,” he says.
Money-strapped purchasers can get reliable estimates on the cost of restoring a property to its former glory before committing to a purchase. For bids on the work, your real estate agent should be able to help arrange for contractors.
Planning to tackle the home improvement work yourself? If so, you may wish to canvass friends who know you well. Ask them if they think do-it-yourself work is a realistic option for you -- both from the point of view of your skill and available time.
“If you feel you must accept a ‘fixer’ to afford the kind of house you want, at least go in with your eyes wide open,” Ottwein says.
(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)