Buyers Remorse - is it a "sign" to back out of the deal?

Buying a home can be very exciting. There are ups and downs when you are looking for that perfect home, and when you finally find it, and write up the offer, that first night can be pretty nerve-wracking.

I usually tell my clients that if they experience any kind of anxiety the night we write up the offer not to worry, that it's normal- and it is! It's a big change in your life, and  there's nothing wrong with feeling a little anxious. If I feel at any time that my clients are unsure about moving forward, I will not write up an offer until we have resolved their concerns. I'll tell you a story to hopefully help you determine whether or not your fears are anything to be concerned about regarding your pending purchase, and hopefully make you feel better

Personally, I get a little nervous every time that I purchase a home, too. Remember that I have been in real estate for 27 years, and have helped hundreds of families move. I have moved a number of times, and personally stared at the ceiling in the middle of the night, and have had to watch old black and white movies just to try and  fall asleep. Honestly, I should be "immune" to that feeling. and I'm not. So truly, I understand what you are going through. A lot of it is just nerves.
 
A couple of things to  think about :

• Are you worried that the monthly payment is too high?  -TRUTH: If the bank has pre-approved you, then they feel that you can afford the payment based upon your credit  and work history, The bank will not give you a loan if you are not qualified- period, end of story.

• Do you think that something better might come along? How many homes have you seen, and how many of those home stack up as well as this one? What was it that prompted you to want to move to this home, enough to write up an offer, and give a deposit check? Writing an offer on a property is a conscious decision and that's  pretty hard to do if you are unsure. It's probably the jitters.

• Is the home missing the particular "wow" factor that you were hoping for?  We all want the best that we can possibly get, and not knowing what's coming on the market, and moving forward with a house that doesn't have everything you want may seem a little premature. Maybe the house has everything that you wanted , and yet you still feel that it's missing something, you just don't know what it is. Sometimes we have "champagne taste" and a "beer pocketbook".  Nothing is going to really get you that big wow factor, unless it's out of your range. Nobody says that you will be living there in 10 years, and by the way- the Natinal Association of Realtors statistics show consistently that people move approximately every 7 years. The easiest way to gain equity is to own a home, and  that will help get you to the next step which is that "champagne taste" house. You can't get to the second floor, unless you climb the steps. If you never take that first step, you'll never get to the top.

• Were you pushed into writing the offer, by your spouse, significant other, family member or friend, or (I hate to say this) by your Realtor?  Okay, well this is different. DO NOT EVER let anyone push you into doing anything that you are unwilling or unready to do. You need to talk this out with your agent, and whoever pushed you into action. What  are your concerns over the property?- are they real, or can they possibly be unfounded? Be brutally honest with whoever you  have this conversation with. It shoudl be your top priority and  it's important for that relationship, whether it be a professional one, or a personal one. The house is secondary.

These are tough questions that only you can answer- you just might need some help figuring out where that concern or those concerns come from.  My clients know that I am here to help them, and they can talk to me anytime about anything. Real estate or otherwise.  Relax, take a deep breath, think about it, and talk about it. That's the best thing- and remember- feeling anxious about your move is very normal.

How can you save money on closing costs?

You  get your Truth in Lending Statement from the bank and it says your closing costs are WHAT???? Yes, that piece of paper can certainly be a shocker, but here are a few ways that you can save thousands on closing costs, and try to relax, that number is intentionally high.

The bank estimates a number of fees at worst case scenario, such as your attorney costs- so the first thing to do is to look at those figures.  They may not coincide with your legal fees.  They may also include POC fees. ( P.O.C. means Paid Outside of Closing)  and that most likely, you have paid aready, so subtract those fees off the total

Did you know that the actual day of the month that you purchase your home also affects your closing costs?  That's right!

• Tip: 1:  If your mortgage payment will be $4,000 for example,  the day that you close can affect your closing costs by up to $4,000. If you know that the bank collects mortgage  payments for the month ahead, then it would make sense to you that if you close on the 2nd of the month, the bank (in this example) would require $3733. for the remainder of the month at closing. If you closed on the 30th of the month before, that same line item charge would be less than $134.  There's over $3,600 savings just  because you closed on your purchase 3 days earlier.   

You may have heard that you are supposed to close at the end of the month- now you know why. A few times, I have had clients that needed to close in the first few days of the month, and they would have incurred that big expense. What I will tell you is sometimes, but not always, you can negotiate  with the bank to NOT take this amount at closing. The result would be that your first mortgage payment would be due  the 1st of the next month, instead of the first of the following month .

Then, there are pro-rated taxes. The bank likes to have a two month share of taxes in escrow, even though the taxes are included in your actual payment, which leads me to my next closing cost cutting measure:.

• Tip: 2:  Each town collects taxes from the bank in their own manner- some collect every 6 months, some collect every 3 months, and here's where it can get somewhat complicated.  If you are closing on a home in the most inopportune month of the cycle in a town where tax collections are made from the bank every six months,  the bank will require more of an escrow (holding account) at closing.

In some cases , there  can be  7 months worth of taxes to  include in your closing statement.  Closing on the same house in a different month  will only cost 3 months of taxes in advance. If the monthly taxes work out to be $500 per month, which is still fairly cheap, your timing alone on this item alone can save you $2,000  in this minimal scenario.  When every penny counts, speak with your mortgage broker to discuss the tax collections and anticipated closing costs for the town that you are planning to move in.  Most realtors do not know about this cost-saving measure, and to be honest, I only found this out about 15 years ago- so talk to your mortgage broker or your attorney regarding  when is the most cost effective time to close on a home in the town(s) that you are interested in moving to.

• Tip: 3: Fuel costs.  If the home you are purchasing has oil heat, or propane heat, there will be a storage tank for the fuel on the property. You re-imburse the seller at market rates for the fuel that is left in the tank. So kindly ask the seller NOT to fill up the fuel tank(s), and only have the minimum delivery if they are low. New clients can often work out a deal with a fuel company, and I can almost guarantee you that the price you pay for fuel will be less than what you will need to re-imburse the seller for. Depending on the size of the tank, your estimated  re-imbursement costs can save you upwards of $500 at closing.

As always, consult professionals regarding the purchase or sale of your home. We are available 7 days a week, nights and weekends, and you can even set up an appointment online for the date and time that's most convenient for you.

Are Fairfield County home prices stabilizing?

Is it possible to gauge whether home prices in our area are beginning to stabilize, or is it just wishful thinking? The answer is yes, it is possible to gauge market stabilization, however there has to be enough sales to make an accurate judgement- right now, there are not enough sales to back up the rosy outlook that we all want. BUT that does not mean  that the market is all gloom and doom- it's not.

I have always been  fascinated by statistics, and have kept lots of market data throughout the years, and reported market data for various publications. I am not new to this- I have been actively engaged in real estate for 27 years including  selling through  a similar market. Like so many others at that time, we  didn't see it coming. One thing for sure though, I made sure that I paid special attention to what happened as we were getting out of that horrible market.

I won't beat up on the first quarters sales statistics too much. We had  the worst winter on record, here, and buyers and sellers alike waited just for that alone- so the quarterly stats may not look fantastic, but they must be seasonally adjusted, so if  you hear the media speaking somewhat pessimistically about this first quarter sales in the Northeast, I am asking you to remember that they are reporting  news as they see it from a  multi-state region- and honestly, you know as well as I do that even if you hear a report on Hartford CT real estate, it doesn't really have too much of a bearing on where we are in Fairfield County, now does it?  

The first thing that happens in a market rebound is that certain "price pockets" begin to sell in each town. What I mean by a price pocket is (for example)- a range from $500-600K will start to  move more quickly than it has, and at the same time, another price pocket of maybe 1mil- 1.2 mil will start to move. The overall market may not seem to be moving in general- (if you look at that way)  but if you pay attention to certain price points, it is.  What I see right now, is a beginning indicator of better things to come.

One thing that's always very important to remember - Pricing is all relative. If your home is worth less than it was 1 year ago, remember that the house you are buying is also worth less than it was a year ago, too. If you are purchasing a higher priced home, that seller has more to lose than you do- couple that with low interest rates, and you make out pretty good!

I would be happy to analyze your current situation with your home, and give you an honest opinion as to whether it's better for you to move now, or wait a few months, or wait a year. It will not always be the same answer- everyone's situation is different. So feel free to contact me, I love sharing my knowledge and expertise when someone can benefit.