Columbus Ohio real estate

Buyers New Conservative Approach to Home Buying

Sabrina's Farmville

Navona Hart, broker - owner and real estate agent of Real Living Cornerstone in Farmville Virginia shared this interesting information about consumers "Conservative Approach" to home buying.

Real Living Cornerstone is Real Living HER's cousin in Farmville VA (Farmville like Facebook???? don't you love that?)  Are people still playing Farmville on Facebook?

Thanks to Navona for allowing her post to be Re-Blogged.  I think this is interesting for buyers... but also for home sellers.  A lot of what is true in Farmville VA about Buyers New Conservative Approach to Home Buying  may be true in Columbus, OH too.

The Sabrina's Farm image of Farmville is from Sabrina Dent's Flickr Photostream Love the bunnies.

 

I know that price is a driving force in this market.  I know that condition is a driving force in this market.  What I am also seeing is something that I believe to be a LARGER FORCE.  The consumer's conservative approach to home buying.  My buyers are putting interesting restraints on what they will or will not buy. 

Price is important and always has been.  Is the property priced fairly is often the number one asked question. The buyers are more concerned than every about are they paying too much. Sellers need to consider this before putting a price tag on their house--assuming a buyer will just make an offer.  The message the buyers are actually receiving is the seller is unrealistic, wants too much for their home, is hard to work with.  The buyers do not believe in the "make an offer just because it is a nice house" approach.   

Condition is a primary consideration.  If a home is not well maintained the buyers are more cautious.  They are less likely to believe that they can fix it, and if they assume they can fix it they are also assuming it will cost a lot more money than it might actually cost to fix.  The message for the seller is fix your plumbing, electrical, & mechanical concerns. 

So here is the twist, the buyers are thinking about the finances of a home much deeper then they ever have before. They do not want to lose their home, they do not want to be financially strapped, they do not trust that their lender is qualifying them for an amount they can actually afford.  First time home-buyers are coming in with detailed home finance budgets

Buyers are putting a ceiling on their purchase price that is significantly below what they qualify for. Buyers are pushing back if they feel they are being pushed into a price that they do not want to pay. Buyers want agents to respect their pricing limits and to help them achieve their goals.

The buyers are approaching a home with a 10 year maintenance plan.  The buyers are thinking thru their budgets that far in advance.  The buyers are considering large items like a roof, heating and cooling systems and making sure that if something were to come up that it would fit in their budget to repair. When a home is going to need major overhaul on several systems in the first 5 years that is causing buyers to pause and rethink their home purchase choices.

The buyers are asking for history of utilities as a pre-requirement of contract writing.

The buyers are getting quotes on insurance before they purchase.

This new buyer approach is a welcome approach in my business.  If buyers years ago had a budget and had considered some of these items we may not have the crisis in home ownership that we are seeing now. 

Navona Hart
434-390-4004
Located in Farmville, VA
Licensed in the Commonwealth of Virginia
Find homes for sale in Central Virginia with Real Living Cornerstone
Receive a FREE market trend report at http://www.homevaluesincentralvirginia.com

Serving Central Virginia from Lynchburg to Farmville to Richmond and everywhere in between!

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This post provided by Maureen McCabe HER Realtors*

Contact Maureen McCabe of HER Realtors* - 614.388.8249

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Information is deemed to be accurate but should be verified to your satisfaction.  Information provided herein is supplied by several sources and is subject to change without notice.  Opinions expressed are solely those of Maureen McCabe.

 


 

Comment balloon 6 commentsMaureen McCabe • June 30 2011 10:56AM

Comments

Maureen, good re-blog. I think most of my buyers are scared to death because of what the real estate market has gone through. And Everyone knows somebody that lost their property.

Posted by Terri Poehler, Coral Springs Real Estate Agent (Realtor) about 6 years ago

I think this is important for sellers to understand.

Posted by Maureen McCabe, Columbus Ohio Real Estate (HER Realtors) about 6 years ago

Thanks Maureen!  Love the intro!

Posted by Navona Hart, Real Estate Agent, Farmville Virginia Homes & Land (Real Living Cornerstone) about 6 years ago

thanks for letting it be Re-Blogged...

Posted by Maureen McCabe, Columbus Ohio Real Estate (HER Realtors) about 6 years ago

Maureen, what a great re-blog, BTW am I the only one who never played Farmville?? I agree most buyers have become very conservative, they are acting as if it was their money now mentality vs the monopoly money mentality before...

Posted by Endre Barath, Jr., Realtor - Los Angeles Home Sales 310.486.1002 (Berkshire Hathaway HomeServices) about 6 years ago

I've never played  Farmvlle and know lots of people who have not. 

Posted by Maureen McCabe, Columbus Ohio Real Estate (HER Realtors) about 6 years ago

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