Compromises

When any person purchases a home they make a series of choices that often result in compromises between what they originally envisioned and what they end up buying.  Even a buyer with millions of dollars is likely going to need to make some compromises.  I’m not referring to negotiations between buyer and seller.  That’s another, sometimes very hard fought subject.

As an example consider the buyer who last year was looking for nothing smaller than a 2000 square foot home in Fairfax up to $700,000.  That buyer ended up purchasing a 1600 square foot home in the mid $700’s in Fairfax.  Sometimes buyers end up compromising on square footage or price.  In this case the buyer did both, but at least he was able to stay in his target city.

One of my relatives is considering buying a house.  In our initial conversations we were discussing what he wanted, which doesn’t actually exist in his price range in Marin County.  “You sound like you’re trying to talk me out of buying.” He stated flatly.

“Sometimes the best thing I can do for a buyer is to talk them out of a purchase.”  Earlier in the same day I was potentially talking another buyer out of a sale.  The last thing I want is to talk somebody into a purchase that they will later regret.  It’s hard to make a living being a Realtor who specializes in not selling homes, but I do well enough with the sales I make.

These days there is so little inventory on the market that buyers really need to be careful not to make a regrettable purchase.  For example the prospect of purchasing a property that needs ‘a little TLC’ is a great marketing angle but for the unsuspecting first time home buyer such a move can become an absolute personal and financial nightmare.  The movie Money Pit comes to mind.  It wasn’t based on a true story, but it could have been.

Last year I sold an Eichler in Terra Linda that needed work to a wonderful couple.  He is a teacher and has the summers off to work on their home.  I was pretty nervous about them buying, but sure enough the home has come a long way and they are very happy.  Of course this could have gone completely in the other direction.

One compromise buyers shouldn’t make is on the amount of work they can realistically accomplish.  It’s going to happen in this market.  Someone is going to get into a multiple offer situation, they’ll pay more than asking for a place they can upgrade ‘in time’, and they just aren’t going to be able to do get it done. While not getting it done in the house, their lives will come undone.  And people wonder why I try to talk them out of buying homes?

As for my relative, if he buys it’s probably going to be a condo or townhome  further north than where he currently wants to live.  That’s a compromise lots of people make.  They go were the values are more affordable and sometimes they decide they don’t need a single family home.  The only question is whether or not my relative can do this and be happy.  Ultimately that’s what’s most important.