Hello 1st Time Buyers Lets Talk

Hello 1st Time Buyers Lets Talk


STAT NUGGET. Year after year, the "median sold price" stat drops this time of year and doesn't consistently go back up until March. That is a crispy gold nugget for those with hopes of buying for the first time. After all, you watch the stats--we hear you. I know you know percentage increases and how high home prices are in our area. However, I want to encourage you to use everything you have at your disposal, not just the discouraging stuff. Read the Bellingham Herald, listen to the news, let yourself be scared by the market, but don't ignore the facts. Next stop: Clarification City.

DEFINE AFFORDABILITY. When home prices do taper--or even drop--they will most likely be doing so because interest rates have increased. Therefore, our "affordability" will not have increased. Please hear me: You are not saving money by renting for the next 3 years waiting for another crash (see below) or for "prices to chill out." Don't put on blinders staring at the glaring sun that is median-home-price. Open yourself up to watching interest rates. They are literally half of what goes into affording a home.

PLAN WITH NUMBERS, NOT FEELINGS. Don't tell yourself you can't afford something unless you've found out you can't afford it. Talk to a lender who won't pressure you to buy anything so he or she can give you real numbers and talk about your, specific, real future opportunities. And yes, if you prefer, you can do all this without the soft pull of your credit. No one ever regretted talking to a lender to get more answers.

DEBUNK THE BUBBLE. If you ask any industry professional, anyone who knows "2007" well, or even anyone who's seen The Big Short, you will know that we are not at a bubble or a crisis. We are on the opposite end of the spectrum on two of the biggest factors from that sub-prime mortgage crisis. (A) Inventory is at *all-time* lows--pre-collapse we had MILLIONS of homes empty nationwide. (B) It's now often difficult to qualify for a loan. We verify income and loads of other dynamics from buyers. Pre-collapse you could write in whatever income you needed in order to qualify for the home you wanted. Ask your friends who bought right before the collapse. They'll tell you from experience how different that time looked and felt.

SAY HI TO APPRECIATION. In recent history, the longest time our country has seen without real estate appreciation was 2008ish-2016ish. Even if we stretch that to 10 years, that 10 years is a complete anomaly, not the norm. Just because it is fresh in our minds doesn't mean it's weighted more heavily or that history tells any story other than appreciation, appreciation, appreciation. If you're trying to flip, be careful always. If you're trying to get into the real estate market for the first time by buying your primary residence, strut confidently and make it happen. Though if you're like my wife and many others, you love knowing the worst case scenario. Okay here it is: You own a historically rock-solid investment that you need to hold on to a little longer than you'd previously hoped.

WRAP IT UP, NATE. It's tough out there; however it will become easier for you to break into owning a home this Fall and Winter. No one should be making you buy or even look. I know many of you who want to look but you're scared of buying at the wrong time or being disappointed. I hope this info today can help you along your way so that, if you want to, you can look for a home with confidence and hope.

Pretty sure we all know someone who could learn something from this. Share away.

Nathan Butcher Headshot
Phone: 360-389-3002
Dated: October 11th 2017
Views: 710
About Nathan: ...

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