We are so close to home ownership! My husband and I decided early this summer that we would finally purchase a house and give up renting for good. It took me some time, but I was able to get my husband on board. He has always felt that renting gives you more freedom and he had always enjoyed moving. I, on the other hand, have owned a home before and knew that I wanted to do it again. I hate feeling like I am living in somebody’s home other than my own.
During this process, we have put in offers (and lost) two homes. One already had a better offer, and the other decided to take the house off the market because he couldn’t get the price he wanted. This past week we found another wonderful house and made an offer. After some negotiating, we agreed on a price and terms. Now we just need to secure our mortgage and have the house inspected. Like I said, we are so close!
The perfect house will be available, right?
Going into the house hunt, we thought we would find a perfect house right away. There are so many houses on the market right now, why wouldn’t there be a perfect one for us? Well, after looking through the listings of the first 150 houses our broker sent to us, we were a bit discouraged but still excited about the process. All said and (hopefully) done, we ended up viewing about 20 houses. Doesn’t sound like too many, but keep in mind that these were narrowed down from the long list of houses using my screening process – take out any houses that didn’t have the basics we wanted…number of bedrooms, number of baths, etc.
In these economic times, we should get a great deal, right?
The first house we decided to pursue was an end unit townhouse. We told our broker what we wanted to offer, and he submitted it. He heard back from the seller’s agent and was told that they were already in negotiations with another buyer, plus, they had offered WAY above what we offered. Hmmmm, we wondered…isn’t this a buyer’s market? Shouldn’t we be able to offer considerably less than the asking price and get a great deal? Well, we now realized our mistake. We weren’t considering that majority of the houses that are for sale today have been priced according to the current market. Most sellers are not listing their houses at the price they want, but rather at the price it is currently worth (or at least in the range). So, in the future, we would have to make offers that were closer to the asking price.
The second house we made an offer on was a single family home with an in-ground pool. A pool was on our wishlist, so we were pretty excited about it. Keeping in mind our mistake on the previous house, we made a bid that was 90% of the asking price…this would hopefully leave some room for negotiation. Nope! The house had been on the market for 170 days, and the seller must have been stubborn about the price. He decided to just reject our offer and take the house off the market. Very frustrating!
Going into the negotiation for the third (and hopefully final) house, we didn’t have high hopes since the other two houses had fallen through. However, we were really excited about the house…single family with finished basement and a large yard for a pool in the future. I will let you know when we settle.
Have you purchased a home recently? Do our struggles sound familiar? Or were you able to find your dream home at a great deal right away?