When looking for your first home in the Chicago real estate market, first time home buyers can often run into a lot of barriers that can really slow them down. Have you been thinking about buying property for months, or even years, but have not been able to make the move? Getting your first property isn’t nearly as hard as it may seem. Below are 3 common barriers that first time home buyers can run into.
Outside Influences
For first time home buyers, one of the biggest barriers that stop them from actually buying a home are from outside influences, namely their friends & family. Don’t get me wrong, it’s not a bad idea to get the advice and opinions of those you trust. The problem is that it often goes too far.
As a realtor, I often hear stories from my clients about how their friends were able to get some amazing deal, such as negotiate 50,000 of the listing price of a home, (no exaggeration, this has actually happened). Then there is the friend who will fill you up with all these horror stories about how they bought a home with mold in the walls, or the foundation is crumbling. Or their friend seen an episode on an HGTV show where this happened. Can you see how all this negativity can stop you from making a move on a house? The Chicago real estate market moves fast, so if you hesitate too long on a property, chances are it will be gone. By the way, I looked up that amazing deal where the friend claimed they received a 50k discount, and found out they actually paid the full listing price. Interesting, huh?
I have also seen family members have a similar effect on buyers. On one hand, family members will want the best home, which is a good thing. Problem can come if your family turns competitive. For instance, as a buyer you will think about how your parent’s home has a finished basement with a bar, and your sibling’s home has a large fenced in backyard with a deck. Therefore, you want a home that the same, or better. This is all well and good, unless your budget doesn’t support what you want. You have to be careful that you don’t fall into this trap, because this can lead you to a point where no home that you can afford will be good enough for you.
At the end of the day, you have to sit yourself down and think about what it is that you really want, and what you can afford. Once you make up your mind, then stick with that decision. If anyone starts to tell you something differently, or slow you down in buying your goals, then don’t pay attention to them. Stay focused and keep working on your goals.
Expectation vs. Reality
That leads me to my next barrier, which is your expectations vs the reality. As a first time home buyer, I always recommend that you speak with a mortgage lender first, so you can know what your budget is. If you don’t know how much the lender will loan you, how do you know what homes you should be looking at? Nothing is more heartbreaking than seeing someone looking at 300k homes, only to find out they only qualify for 200k. Their expectation was set really high, when in realty they simply cannot get that home, and have to settle for something lesser. When you speak with a mortgage lender first, they will let you know exactly how much you can afford, and even estimate what your mortgage payments will be. With that, you will be better informed on what homes you should be looking at and can reasonably buy.
Analysis Paralysis
Buying a home is a big investment, perhaps the biggest investment you can make over a lifetime. As a first time homebuyer, you want to do whatever you can to make the right choice. One of the ways we do that is by doing as much research as we can on the subject. Believe me, there is a lot if info out there on choosing the right home, what type of property to choose, how to save money on your first property, where to buy your first property, and the list goes on.
This is where analysis paralysis can set in. You can spend so much energy researching the topic, that you never actually start doing the thing that you are researching! With all this info, you will often run into conflicting opinions, and get stuck on what you should even do. Want the advice from an experienced real estate professional? Simple, just stop researching, and start buying! Unknown factors will always arrive, especially when dealing with Chicago real estate. Even experienced investors factor in money for the unexpected issues that always tend to pop up. So if you are serious about getting into Chicago real estate, just get up and get started! If you want specific steps on how to get started, feel free to reach out to me and I can help!