Episode #28: Avoiding Real Estate Regrets
The Savvy Synopsis
A recent survey uncovered first-time home buyer's top real estate regrets. Join us as we share tips for avoiding regret when it's time to purchase your next home.
Real Estate Myth Busting.
- 00:39 - A recent Porch.com survey asked first-time buyers what they regretted the most about their transaction or home buying process.
- 1:13 - Buying too small of a home was one of the top regrets. Even Baby Boomers surveyed wished they'd bought a larger space. While the space seemed ideal at the time, buyers wished they'd thought more about their long-term needs in a home.
- 4:02 - Many of the younger folks surveyed wished they'd saved more before buying their first home. We never want our clients to find themselves house poor, and while they're all kinds of home loans out there, we'd highly recommend you build yourself a buffer as you prepare to buy. We want you to be prepared for any complications that might arise with your home.
- 7:00 - Buyers wish they'd realized how much paperwork and time went into buying a home. The buying process is a lengthy one, and once you decide on a particular home, you can't skip straight to the closing date.
- 9:02 - Not taking the time to research was listed as a top five regret. Close to 95 percent of home buying starts online these days. Use the internet to your advantage as you begin looking for you dream home.
- 11:51 - Join us on a trip to Cleveland Oaks in Garner.
- This neighborhood sits just south of Raleigh. It's between Hwy 50 and I-40.
- Most of these homes were built in the mid-2000s. It's a very mature neighborhood with beautiful trees, and each home has about half of an acre accompanying it.
- Price Range: Low to upper $200s.
- Size: 1,600 square feet to 3,300 square feet.
- 14:00 - Misty says it's been about 25 years since she and her husband last bought or sold a home. She wants to know what they should do to prepare to sell their house.
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It's time for The Savvy Realtor Podcast. I'm Walter Storholt alongside Angie Cole the owner and broker in charge of A Cole Realty serving you throughout the Triangle teaching you about the ins and outs when it comes to buying or selling a home. You can find the team online by going to A Cole Realty dot com that's A C-O-L-E Realty dot com or by calling 9 1 9 5 7 8 3 1 2 8 that's 9 1 9 5 7 8 3 1 2 8. And now it's time for one of the top realtors in the Triangle. Angie Cole and the Savvy Realtor podcast. I want to talk to you Angie about this Porch dot com survey that they recently ran and they asked first time home buyers what they regretted the most about their transaction about the process.
And I'm curious if you see people in our area suffering from similar remorse and maybe how do you help your clients avoid these kinds of disappointments by the way the other cool thing about this articles they did break it down by generation so they were able to kind of show the percentages of disappointment or of regret from baby boomers Gen Xers and Millennials which you know is kind of interesting to see. One thing that they listed was buying too small of a home was a common regret. In fact it was one of the top regrets among all three generational groups going through their first purchase experience. But interestingly most significantly among baby boomers you know that's interesting to me.
But I guess where you mentioned baby boomers but their first purchase experience all of these are first home time buyers whether they're baby boomers or not make sense. OK. OK. So I could definitely see that being a concern or an issue or regret that we've run into as well as for some feedback that we receive. I think typically whenever you know any generation moves into a home it's perfect in that moment. But I think it's important to think about long term you know if your goals are to be in your home for three years and move maybe it won't affect you as much you know. But if you plan to stay in your home for several years think about how your family will grow very quickly. You know it might be you as a single person then you get married then you have a baby. You know that could easily happen within a year you know. And so just always think about maybe next steps in the future so maybe whenever you purchase the home there's just the perfect amount of bedrooms for your current situation but what if you add one family member to your home. What if you decide to add a pet. And now you have a big lab that's running around you need more space so you know be careful on limiting yourself on square footage. You know I'm not saying I do. Sometimes we've helped some clients and it's like one single guy who goes and buys us 5000 square foot home. I'm not joking. I had this happen. And you just wonder like what are they going to do with all this space. Teacher on that but be cautious about getting a home that's just enough space because your family's status might change. And I you know would you know strongly dislike if you know immediately you buy the home and were forced to move because we've gone out of our home.
Right yeah. And that was I mean when we bought our first home our starter home the idea was it was just going to be for us and the dogs and you know we started feeling pretty crammed in there after a while and so our next home we went you know quite a bit larger for our next home. And it's so funny because my wife's mom was like there's a big home for two people you know like and we're like well people and we're probably going to always be a two dog home. Sure and we're gonna have kids it's gonna fill up quickly it's amazing.
We went without in advance. Yeah. And even without adding more family members it's amazing how you quickly fill those spaces somehow. Right. Right. As nooks and crannies. I mean I know even our guest bedroom our closet is completely full. You know but no one's living in that room. But somehow you stuff it full with stuff. So yeah care for a cautious on getting a home that's too too small.
Yeah that's the common regret among a lot of folks. So you're not in the you know you're in a similar boat there if you've had that before. Something else interesting Angie that was noted in this survey was that there was a common regret expressed about not saving enough money before purchasing and this was tied as the top concern for millennials. But it wasn't a big deal for Baby Boomers and Generation X at least not as big enough of a deal. I guess that makes sense they've had more time to save in their working lives.
Yeah that makes perfect sense. You know I would never want one of our clients to buy a home and then the so-called house poor. Right. It's important to you know remember there are different types of loans that can help you when it comes to down payments. You know there's many options for 100 percent financing CEO as far as saving money. You might not even need to save money for the financing part of it but I would still make sure that you have a buffer just for general maintenance. Remember that whenever you own a home if something goes wrong it's up to you. There's not a maintenance guy that you can call to change out your light bulb to fix your water heater whatever it might be. So you know it's just like a car. You buy a car. But if something goes wrong you need to have the means to be able to fix it. So having just a buffer you know some savings available should a problem ever arise. I think it's very important you know. And so I could see that this is true millennials probably get super excited about buying their first home. They are potentially pinching pennies just to get into that home but they don't have a savings net in case something were to go wrong where I could foresee you know Baby Boomers and Generation X being a little bit more conservative. And also probably not maxing out their budget as much as Millennials might.
I think you know and this isn't a knock on the millennial generation being one of them. But you know I think we tend to be that generation that kind of wants everything and wants it now and in some ways this actually can be a good thing. I mean where we know what we want. We kind of go after it a little bit of that person but you know at the same time that can get us in trouble.
So we tend to overreach on certain things make smart buying decisions you know buying a home is probably the largest you know financial decision you will ever make in your life. So make sure when you go to buy the home you know just because you can qualify for three hundred thousand dollar home it doesn't mean you have to buy a three hundred thousand dollar home. You know so make smart buying decisions.
Two tips from my point of view take deep breaths and apply a little patience when you're making these decisions and always leave room for buffer. Yes. So employer always especially when you're buying it for the first time you have no idea all the little costs that start to add up and Kensi urge to go and upgrade everything short.
And you've got to kind of keep that in check a little Yeah and take your time with filling the home too. Yeah. You know we have to be filled immediately. Right. Yeah. Don't don't put every single penny that you have towards furnish in the home either rack on one room at a time take it slow just so you're not stressing yourself out financially.
We don't spend too much time on this one. Angie I thought it was interesting by the way if you're just joining us this is the savvy real tour radio show we're talking with Angie Cole who's the owner and broker in charge of a coal realty here in the Triangle. We try and help you learn the ins and outs when it comes to buying and selling in the area. This article from Port dot com was a survey talking about top first time homebuyer regrets across multiple generations and understanding how much paperwork in time the home buying process requires. Oddly was listed as the second highest regret of baby boomers. It was also high for other generations too. But it was one of the second highest regrets which I thought was the most kind of paperwork and time is an interesting thing to regret. But that was interesting.
Yeah that is interesting. I do see oftentimes that buyers get overwhelmed with the amount of paperwork and just the process because they think it's OK want to buy the home. All right let's go to closing the biggest time period throughout home buying that I see that there's so much paperwork is going to be the financing side of it. You know we have so many clients that just complaining like oh the lenders asked me for this and this and they think that lenders almost made a mistake and so they're repeatedly asking for the same items like hey I need a bank statement. I needed another bank statement. But you know what. That's their process that they have to go through and all that they've asked for the bank statement once they have to sometimes get another bank statement that you know updated.
I kept waiting for them to ask my Amazon transaction history. That'd be very scary on my end to analyze your spending a little bit.
Yeah it can. It can be overwhelming so just know that you're not the only buyer going through that every buyer is dealing with the same amount of paperwork and that everyone's dealing with. And so yeah I could see that I regret is a funny word you know but I could see it just being stressful. But you know once you close in the home it's it was all worth that I know.
Yeah absolutely. So that's an interesting one there for sure. Also Angie top regret was not doing enough research. The numbers were actually smaller here indicating that maybe people actually are taking the time and due diligence to you know do a decent amount of research. But it was still identified as a top five regret.
Yeah. And I could see this one being on the lower end as far as a percentage of people regretting this because you have to think about when someone is buying a home. I would say the numbers now around 97 percent of home buyers start their search online. So I think most are really good about doing the preliminary searching getting an idea of where they want to live what's affordable within their means and the location they want to be in. And so you know and also I know when we're looking at Internet leads you know they say on average most people start their home search six to 12 months before they're actually ready to buy. So I do feel like home buyers are doing a great job when it comes to doing that research. So when they actually act get out there in you know the market and start looking at the homes. They do know what they want but I think that is a great way to get started. So use the Internet as a resource to start that preliminary research before you start just opening up homes and getting into the homes and make it a quick decision. Make sure you know where you want to live. So if you're thinking about buying a home and you want to get an idea of the steps from start to finish. Contract to close. We have a great resource that we would love to share with you. And it's our home buying guide so to obtain a copy of our home buying guide you can text the word contract to the phone number 5 5 5 8 8 8. So once again to get a copy of the home buying guide which is the process from start to finish just to make sure you kind of have one step ahead. And you know what's going on throughout the process. You can text the word contract to the phone number 5 5 5 8 8 8.
Pretty cool tool to be able to use a lot of people request this on the show each week. All you have to do is text the word contract to the number 5 5 5 8 8 8 will text you back a link that has the buying guide that you can access. It's a great reminder of all those steps of the buying process. So we're talking about doing research. This is a great way to start doing some research about your next home purchase and be reminded of those steps whether you're a first time home buyer or not a lot of folks just like a refresher of the process.
You know what was due diligence what was earnest money again. What were all those steps when. When do I contact this person and that person. How do these little details work that buying guide kind of breaks it down to an easy step by step timeline and process for you. Just text the word contract to 5 5 5 8 8 8 to get angry calls.
Oh my God. This is the savvy bill toward what you call
Let's shine a little light on some of the Triangle's best areas right here on the neighborhood spotlight.
The neighborhood spotlight is one of my favorite parts of the show where we learn about nooks and crannies throughout the Triangle with Angie Cole of Echo realty here in the Triangle and Angie where are you taking us this week. Introducing us to a new neighborhood.
Yes I'm taking you guys to Gardner where we have our brand new listing located said the subdivision is called Cleveland Oaks Cleveland Oaks sits just south of Raleigh. It's in between Highway 50 and Interstate 40. So you know quick hop onto the interstate just to get into downtown Raleigh if that's important to you. The homes are priced anywhere from like the low to hundreds to upper to hundreds. They're around sixteen hundred square feet up to thirty three hundred square feet. Most of the homes were built around 2003 to 2006. I noticed that there are like two brand new homes that were built in 2015 but for the most part in the mid 2000s were when they were built and the great thing about this neighborhood is it's a very mature neighborhood. We have lots of trees just beautiful views the homes sit on lots are all over a half of an acre or two. So their homes aren't just on top of each other.
That's pretty nice. I'd like a neighborhood that has a little bit of space to breathe and like you said easy access is still get into Raleigh and I-40 and all the other surrounding things. Sure thanks. Pretty cool if you want more information about Cleveland oaks or maybe you're there looking to sell your home and move to another part of the triangle around the area. Angie would love to talk with you if you give the number a call she can have a conversation about how to sell or maybe if you're looking to buy your home in the area.
9 1 9 5 3 8 64 77 is the number to reach Angie if you need a real tour here in the Triangle. You can call or text Angie at that number by the way. 9 1 9 5 3 8 64 77. That's this week's the neighborhood spotlight.
And there's much more on the way on the savvy real talk with Andrew Cohen. Stay tuned.
It's time for the mailbag. We want to hear from you
Misty says Angie it's been about 25 years since we last sold and bought a home. What tips do you have for this is her quote old folks like us getting ready to go through the process again.
Oh my goodness missy. So you know my suggestion and this would be for most people who have stayed in their home for you know 10 plus years which I know you're at 25 but start sooner than later. I can only imagine that you have accumulated a lot of belongings. I know I've only been in my home for a couple years and it's amazing how quickly our attic can fill out that stuff our closets you know and I can only seem you know it's the same for you.
So yes I would start sooner than later so it's not overwhelming and you're not stressed by the whole process of listing your home and moving you know because it's going to take some time to go through those belongings box things up decide what you're going to keep what you're going to move. And of course we always want to make sure that with listing homes that we have them so-called show ready. So whenever we take the professional photos and we make your listing actually live and allow showings you know we want it to be. We always say minimalistic we tell our sellers to depersonalize Dick clutter and we want the buyers to be able to walk in and to feel like that home could be theirs and they could bring their furniture in. But if the home has all of your staff issues bogged down with a lot of items it can be distracting. So you know it is never too soon to start the process as far as meeting with a real estate agent which I would love the opportunity to meet with you for listing presentation to understand the process. But I can go ahead and connect you with our professional Stager the professional Stager is the one who will come into your home go room to room take notes for you e-mail this to you but give you suggestions on changes to make maybe things to move things to box up and so put that piece of paper on your fridge and slowly go through that process because we want the process to be as you know seamless and stress free as possible. And if you wait to the very last minute to do that it can definitely just take the fun and the joy out of selling and moving.
You've been listening to the savvy real tour podcast. I'm Walter store Holt alongside Angie Cole. She's the owner and broker in charge of a core realty here in the Triangle and if you have questions for Angie we invite you to go online to a call realty dot com. Listen to a past podcast episodes on the Web site read the blog and all the great information including the option to find a home right there on the website. That's a call realty dot com and you can also call answer with your questions. 9 1 9 5 7 8 31 28.
The above audio transcript of "PODCAST 028 - REAL ESTATE REGRETS - ANGIE COLE.mp3" was transcribed by the best audio transcription service called Sonix. If you have to convert audio to text in 2019, then you should try Sonix. Transcribing audio files is painful. Sonix makes it fast, easy, and affordable. I love using Sonix to transcribe my audio files.