Buyers’ Most Frequently Asked Questions…Answered!

Buyers’ Most Frequently Asked Questions…Answered!

Secrets for Buying a Home

Buying a home can be confusing. That’s why the tips and strategies you’ll find in my 8-week series will set you on the right path. It’s my own unique approach and a “behind the scenes” glimpse of what you should look out for and consider when starting your own search for a home.

Buying a home, especially if it’s your first time, can be complex and confusing at times.  But, you are not alone!

Just like most homebuyers, you want to make sure you don’t do something wrong. Or, you might worry that you don’t know what you don’t know!

I hear from my clients all the time about their concerns and questions when buying a home in today’s market.  That’s why I’m here to provide answers to some of the most common questions I get so you can become better informed and more reassured.

The questions swirling around in your mind are likely the same ones that other buyers, like you, want to ask too.  And, more than likely, it was the same questions that buyers who went before you have also asked!

I’ve heard your question before, and even if I haven’t, no question is ever a “dumb question,” so ask away!  And, if you have any questions that aren’t listed below here, reach out and ask!

Even though each buyer’s situation is unique, you’ll find the question/answer sections below helpful in giving you some insight on what steps might be best for you.

Plus, maybe you’ll also learn something “you didn’t know you didn’t know”!

Q: How do I know the property value will increase?
While there are no guarantees, there are key indicators and historical trends that can offer insights into future performance. For instance, home prices in Eugene have historically risen by an average of 5% annually over the past 25 years. Even with some leveling off in recent years, the trend has remained positive.

Buying smart is essential. Each neighborhood has its own dynamics, so understanding the local market is key to avoiding overpaying. Request historical data from your Realtor for any home you’re considering—it’s one of the best tools to gauge whether you’re making a sound investment.

On another note, pay attention to areas experiencing changes, such as increased density or growing desirability, as these factors often lead to stronger appreciation over time. To ensure accuracy, rely on concrete evidence like projects that have reached the planning, development, and funding stages, rather than hearsay.

As the saying goes, “You make money in real estate when you buy.” By focusing on a thoughtful purchase, you set yourself up for success when it’s time to sell.

Q:  Should I put a hard deadline on an offer?

This depends heavily on the specific circumstances of the home and the market conditions.

In highly competitive neighborhoods, sellers often prefer to give their home full market exposure to attract the highest possible price. In these cases, sellers usually establish their own deadline for reviewing offers, making it less effective for buyers to impose their own timeline.

However, if the seller isn’t expecting multiple offers, or if they’re looking for convenience or a quick sale, including a response deadline can be a smart strategy. When using this approach, it’s important to strike a balance: set a deadline that allows the seller enough time to respond thoughtfully but doesn’t leave the door open for another offer to enter the picture.

In my experience, a 12-hour to 24-hour window during working hours often works well in competitive situations. This approach can sometimes help you avoid a bidding war, but it’s crucial to make your offer attractive enough for the seller to act quickly. This might mean offering above asking price or including favorable terms, such as minimal or waived contingencies.

Keep in mind that not all sellers will feel compelled to respond within your deadline. Be prepared for the possibility that your strategy might not always prompt the desired reaction. Flexibility and readiness to adapt are key in these scenarios.

Q: Is it worth it to find something faster when interest rates are low?

No! Interest rates shouldn’t be the sole factor driving your decision to buy a home. Instead, focus on whether the monthly payment fits your budget. If the payment is affordable and aligns with your financial goals, then it’s the right time for you.

A slight increase in interest rates is unlikely to make your dream home unattainable. Trying to “time the market”—whether with real estate or other investments like stocks—is rarely a successful strategy.

The best time to buy or sell is when it fits your personal circumstances. While it’s worth consulting with an expert to determine which months might offer the best opportunities, your timeline should take priority.

Remember, there will always be homes available. And when interest rates rise significantly, it often results in a cooling of home prices and reduced competition, which can create new opportunities for buyers.

Q:  How do I get a good deal?

This is an excellent question and a priority I focus on with every client! The best way to ensure you’re getting a good deal is to thoroughly analyze the specific neighborhood where you’re buying. Compare the home you’re considering to similar properties that have sold within the past six months to a year.

Pricing can vary based on factors like location (e.g., homes on busier streets tend to sell for less) and condition (e.g., recently renovated homes typically command higher prices). Reviewing comparable sales data ensures you’re not overpaying.

It’s also important to understand the current market conditions. Ask your agent whether it’s a seller’s market or a buyer’s market, and tailor your offer strategy accordingly. Homes that have been on the market longer often provide more room for negotiation.

Finally, remember: just because a home seems “cheap” doesn’t mean it’s a good deal. Avoid this common pitfall by focusing on value, not just price.

Q:  If the house I want is $20k over my price range, does that mean I can’t afford it?

I always advise my clients to focus on their monthly payment rather than just the purchase price. By doing so, you’ll have a clearer idea of what you’re comfortable paying every month for your home.

For example, instead of fixating on a price point, consider your monthly budget—say $2,500 per month—and determine what purchase price fits within that range.

Why?

Because for every $10,000 increase in price, your monthly payment typically only goes up by just over $60.

So, if the home you love is $20,000 over your initial budget, that translates to roughly $125 more per month. Ask yourself: is that manageable? If the home checks all your boxes and the extra cost won’t strain your finances or force uncomfortable lifestyle changes, it might be worth going for it.

On the flip side, opting for a less expensive home might save money upfront but could require additional spending on repairs or updates. Weigh the pros and cons carefully to determine what works best for you and your budget.

Next week is one of my favorite articles — Is the “Paradox of Choice” Derailing Your Home Search? I tell you the secrets from this book that can help you focus on making a decision and not being overwhelmed by too many choices. You don’t want to miss it!