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Tuesday, December 13, 2016

Think You Are Ready to Buy a Home? Consider Real Acquisition Costs First.

The most important advice I can give to prospective home buyers is this:  Don't Start The Process Unless You Are Committed to the Results!

Shopping for a home has costs beyond the actual price of the house.  Start with a little thing called opportunity cost.

If a buyer is not committed to the process then what else could be done with all the time expended in the home search process?

If a prospective buyer has nothing else to do with their time than look at houses then they should consider their real estate agent. Real estate agents are nice people who are awesome to be around.

But if a buyer is not committed to the process their time is wasted.  Real estate agents are not paid by the number of properties viewed or the miles driven!  Realtors get paid when a transaction is closed.

The purchase of a home involves stress.  The decision of which home to make an offer on and how much to offer.  The financing process and anticipated costs.  The inspections and any repairs that may be needed.  Shopping for insurance quotes. Reviewing the documentation such as association rules or financials.

All require time and energy.

Every step along the way may proceed smoothly or create a wrinkle that must be solved.    And each step costs buyers real money. 

Lets see, after the accepted offer, there is the escrow (good faith)money to be deposited, property inspections, WDO (wood destroying organism) inspections, appraisal fees, septic tank inspections (if applicable) and more.  There is the payment of a year's homeowner insurance before closing. 

Expenses add up.

And then, like a recent buyer experienced, cold feet.

To walk and give up all the expenses already incurred and forfeit the escrow deposit, as well, really is an indicator of a lack of commitment to the process.

If you are considering buying a home in Viera, Florida, make sure you are ready and committed.  If not, consider the opportunity and real costs of looking anyway!

Ready to buy a home in Melbourne, Florida?  Call or text me at 321-693-3850.

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