Don’t Be That Desperate Homebuyer!

Don't Be That Desperate Homebuyer!

Don’t Be That Desperate Homebuyer

Don’t be that desperate homeowner! This is a fabulous blog from our premiere mortgage partner, Dan Tharp. Enjoy, —JaCi.  When the governor announced the shelter-in-place order in March of 2020, my business came to a screeching halt. My buyers that were in contract feared the worst; that values would plummet, they could lose their jobs or, worse, get sick. Maybe they shouldn’t move forward with the biggest purchase of their life. My agent partners were scared too – Not just about this imposing pandemic, but also their livelihoods – these were dark days as consumer sentiment plummeted to all-time lows.

ADVICE – Before jumping into the homebuying fray – YOU NEED A TEAM and A PLAN!

During this time, a few of my buyers backed out of their purchase contracts. But one, in particular, seemed to present psychic ability to see events in the future, as he and his agent negotiated a huge seller concession in price and closed the deal. He is now sitting pretty and probably feeling like the Warren Buffett of the Real Estate world.  He had a plan and a team of professionals to help him navigate the process.

This was the beginning of a massive wave of market activity as 2020 progressed, and with it, the hope of “normalizing” back to pre-pandemic life grew. People started to look at their current living situation honestly, and working from home all of a sudden became a “thing.” Then mortgage rates started going down and more positive consumer sentiment fueled a sudden interest in home buying.

ADVICE – Before jumping into the homebuying fray – YOU NEED A TEAM and A PLAN!

So Where Are We Now?

The Perfect Storm – higher demand with low inventory equals an unprecedented surge in housing prices. According to Danielle Hale, Chief Economist at, the housing supply has dropped an incredible 53 percent compared to last year – this is getting very Thunderdome-like, with folks paying upwards of 5% to 10% over asking to beat out multiple offers.

The number one mistake most new home buyers make is to go shopping even think about shopping for a home first before getting the financing approved and consulting with a trustworthy mortgage advisor, not a lender who will just throw you a rate and payment and tell you that you are approved for a loan and to go shopping. You want someone who will guide you through the process and the financial planning aspects of owning a home. Please do not look at any homes until you have taken the time to get fully approved and have an understanding of your true financial picture, your max comfort zone in terms of price and payment, and a strategy for getting your offer accepted!

Trust me; I know that shopping for a home is the sexy part of this process and that the lending portion is about as exciting as getting a flat tire when you are late for work. I promise you, get your finances handled first; then, you will be a confident borrower because you know what to expect. After all, you will know your numbers backward and forwards, and you will have been coached by your team (lender and agent) to prepare for any hurdles that may appear and do so having no fear!

ADVICE – Before jumping into the homebuying fray – YOU NEED A TEAM and A PLAN!

There is no secret the housing market is on fire right now. While some are talking about a 2007 type crash, the fundamentals present today are very different – low supply combined with growing demand and low-interest rates suggest that the overheating we are seeing is not based on bad mortgages and appraisals, but instead an unfortunate series of market conditions – Hello COVID.

Simply put, don’t be a desperate home buyer. The question you should be asking yourself is not, “is this the right time to buy?” You should be asking yourself, “are you ready to buy?” Step outside of the fact it’s fun to look at homes and imagine yourself as a homeowner, and instead, pay attention to why YOU are buying. Remember, you can’t control the market, or where rates are going, or any of this craziness that is real estate today. Buying a home is a huge deal so take the time to be thorough and have peace of mind when you decide to move forward.

And most importantly, if you haven’t gotten the hint by now – please make sure you have a good team and a plan before jumping in

In Gratitude,
Dan Tharp – Branch Manager – 916-257-1470
2250 Del Paso Rd. #A, Sac. CA 95834
NMLS# 280913  NMLS # 3274
Equal Housing Lender

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