In Todays market, banks are approving buyers for loans for more the amount the buyers think they actually need to get the house they want. A bank may give a buyer looking to purchase a home a loan for $700,000 when all the buyer really wants to spend or what they think they need to spend is $550,000.
So what does that buyer who gets approved for 700k do? They look for homes within the $480,000 – $550,000 range, thinking that amount is sufficient to buy what they need. While that price range may be able to supply them with enough inventory on the market to view, the buyer is stuck in that bubble, not really knowing as what else is available on the market for lets say $600,000.
More than often the buyers real home is outside their bubble price. While we are real estate agents you might assume that we’re just saying this to get you to spend more money than you might need, that’s not the case, our job is to find you a home that you’ll be happy living in for the next X amount of years. For that reason, we try to find out what makes a home desirable to you?
There are many factors that play into deciding which home is the best for you; buyers tend to focus on the end point, which is often price. When we get buyers that call us at mybramptonlife, we generally ask them how much they are comfortable spending and they’ll give us a price range which they’ve believe is sufficient enough to get them their home. We then ask them how many homes they’ve actually visited in person and have seen; quite often the answer is zero or they’ve seen some online. The truth is, even if they think they know what they desire, once they step into the house itself after viewing nice picture’s of the property online, they’re quick to realize that online pictures of houses can be deceiving.
I tend to show my buyers homes that as close to their price range as possible and when they decide well there’s nothing here for me, then, I’ll take them to listings that maybe priced slightly higher than what they want to spend and can you guess what happens next? They now want to view homes in the new price range that we’ve set because what they’re really looking for is in that slightly higher price range and not the previously set price range because physically viewing inventory shows you what is really out there.
We’re not always encouraging our clients to spend more than their set budget, but why not look around and see what’s available. You never know what you want until you see it. If you in the end you do decide to put an offer on the home in your original price point, then at least you’ve seen the inventory and have made an informed decision. Most buyers are open to seeing properties price and higher and lower as buying a home is a major commitment.
We encourage prospective buyers to make a list of things that they would like to have in their new home, ranking them from must have to can live without. A swimming pool may be a must have if you entertain a lot during the summer, but would you prefer the swimming pool over a highly renovated kitchen? Would you prefer living close to a school? Or would a location that doesn’t have a lot of traffic be preferred? Every house has its pros and cons, and visiting current inventory can subconsciously help you decide what you really want.
If you’ve met with your bank and think you’re ready to start looking for homes in Brampton, contact mybramptonlife.ca and we’ll figure out the best options for you!