Buying a house is not only a huge financial decision, but a huge life decision. Buyers often make mistakes because of the fantasy they have of the perfect home, and these mistakes are ones that can greatly impact their lives. How can we help buyers make more informed decisions? What do we need to consider other than their financial position? How do we approach the conversation without offending our client? In this episode, Bill Joyce explains how we as agents can deliver a more holistic service to clients.
There are a lot of mistakes we can make as we chase this fantasy of the dream home - the perfect, happy home - and these are life-changing mistakes. -Bill Joyce
Three Things We Learned
The difference between the price and the cost of a home
We need to remember that the price of a home is not the same as the cost of a home. The price is what you pay upfront and the cost is the ongoing bills and maintenance. When buyers don’t consider the cost, it impacts the lifestyle they thought they could have.
Calculating budget based on personal affordability
A lender is not a financial advisor, and they tell buyers what maximum the bank is willing to lend them rather than how much the buyer can afford to spend. A bank’s lending guidelines have more to do with their profit than a buyer’s happiness, and buyers need to treat buying a home like a financial planning exercise.
Working backwards to make holistic buying decisions
Agents should encourage buyers to figure out what a happy home looks like to them based on their lifestyle and family needs first. When we allow buyers to make decisions based on their fantastical pursuit of the perfect home, the reality often undermines it as they have not considered all the factors.
Time and money are the two most precious, limited resources we have to work with, and a house will consume both. When advising buyers on purchasing a home, we need to make sure that they are carefully considering their finances, lifestyle and family. We need to encourage and equip them to make a sensible purchase that aligns with the things they value in their life so that they don’t make decisions that undermine the idea they had of their life in their new home.
Bill Joyce is the Owner of Charter~Home in Sacramento. Bill spent 20 years as a consultant out of New York advising corporate clients and travelling the country. Over the years he ended up developing an impressive client list which included American Express, Pitney Bowes, the US Postal Service, along with every major New York advertising agency. Bill was routinely asked to speak at conferences and conventions in his field and wrote articles for trade magazines. In 2004 he changed his career to real estate, a field where his work ethic and problem solving skills could have a genuine impact on people’s lives, with less travel. Bill found his home and purpose in the American homeowner - those stuck in overpriced homes facing the staggering cost of overpaying for housing and stuck where they are for a decade or more. He is writing a book and online newsletter “Surviving the American Dream” in an attempt to spread the word about what really happened with the crash, as well as provide practical advice for taking control of your financial future. In recent years, home ownership has had a disastrous financial impact on the lives of millions of Americans and Bill wants to fix that, one family at a time.
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