An article from cbsnews.com – get good help!
http://www.cbsnews.com/news/buying-a-home-in-2017-prepare-for-battle/
An excerpt:
“Home buying is about substantive economics, but it’s also got an element of ‘animal spirits,’” said its President Steve Udelson. “In some of the hottest markets, we’ve seen a double-digit run-up in prices.”
The website surveyed 1,289 prospective buyers nationwide, and its findings suggested that most prospective homeowners already had their feet in the starting blocks for the spring selling season. More than half were willing to go beyond their budget — by an average of nearly $38,000 — to get the property they desired.
And like most competitive athletes, they were hopeful as well as scared. Not surprisingly, about 60 percent of those surveyed feared:
- Bidding wars driving up the price of their dream home.
- Losing the “earnest money” they put down when they signed a contract.
- Becoming “house poor,” that is, unable to afford amenities like a meal out in order to make the mortgage payment.
Read full article here:
http://www.cbsnews.com/news/buying-a-home-in-2017-prepare-for-battle/
In order to avoid becoming house poor, buyers just need to do their homework and know how much they can spend and put a limit on that. Like going into a casino, set a spending limit while you gamble and if you exhaust your allowance, then your done gambling. Don’t go to the ATM to get more cash and keep gambling!
Also, it helps to not get emotional about the houses you bid on. Try to keep things logical. Treat it like what it is, a business transaction. You can fall in love with it after you win the bid and then start thinking of it as your own home.
Agreed, and I think there are just enough homes coming on the market that buyers shouldn’t be concerned about never getting one – unless you are on the lowest fringe of the prices in your target area, and refuse to cast a wider net.