Al and Cal Homes and Community: Spending More Might Save You Money When Purchasing a Home

Spending More Might Save You Money When Purchasing a Home

Spending More Might Save You Money When Purchasing a Home

I want to first say, loud and clear that I am not advocating for spending beyond ones means.   Rather, the thought comes by knowing that people will look at bargained price property without thinking long term at the costs of dollars and time that it will take to make the home "liveable" for them.

If at the end of the day, if the bargain costs you capital and time, and you could have bought a slightly higher priced home, at the current rates, it could save you cash in the long term.   It could definitely save you headache.   spending on a home, spending more to save, home purchase

This thought comes from the voice of experience, not just in selling homes, but a personal observation as well.    

"Don't you just love a bargain!"   As I write, I can hear that Christmas Tree Shop jingle in my head.   I can so relate.  I love to get a bargain.      Obviously, others do too.   That's what makes the jingle and it's store so it is widely popular.  

Real Estate is NO different.   Everyone dreams of the "deal".   

I grew up in a family of do it yourself folks and contractors.   It has always been easy for me to look beyond an imperfection, seeing the way it will be transformed with a little work.   The other thing I do know is that, a "little" work most times means a lot money.    At the very least it will cost time, and in many cases lots of it.    

How Spending More Can Sometimes Save You Money.   

Before getting out there to look at that home, you need to be prequalified.   That's not news to anyone these days.    The lender will look strictly at numbers and make an educated and strategic assumption based on those numbers.   They will let you know what your purchasing power is.   What you can spend up to.    I am not a fan of spending the most you can, but staying with in your means and understanding your own personal lifestlye is always the best bet.      When a buyer wants to focus on a price range under what the bank says they are good to go for, I am all over that.   

But, there are some considerations.

When faced with a choice of two homes, one priced for less because it needs more work, should you go for the lower priced home and plan to put those upgrades in?    We are talking about major updates here.  Unless one has the capital saved already, it can cost more to save for those updates/repairs, especially considering current home loan rates.  

How to weigh the decision?

  • Be Serious.    I watch a lot of those home improvement shows.   You know them.   The ones where they can transform a room with just a couple of thousands of dollars.    What they don't give you in the transformation cost is the labor involved.    If you must get someone else to complete the job, then factor those costs in!    
  • Do It Yourself vs. Contractor.    My brother says this best.   Yea, he can put a roof on.    But he's not a roofer.  It will take him longer than a professional in that field.  In that time that he takes to figure it out, he can work at his own job and make more money doing what he does best, leaving the repair to the pro.     There is something to be said for that.   

From Experience.   My First Home.    Needed everything.    Of course the family came through with all the essentials, getting those up to speed, but the cosmetic upgrades, kitchen etc..  well, that was on me.    It took me a long time to save the cash for a remodel.   I figured out over the years that it took me to save, if I had only spent a little more, right out of the gate,  I would have had what I wanted sooner.   I would have been happier sooner.     Now I am wiser.

Again, Spend according to your lifestyle,

but, remember that a bargain is not always a bargain!

  

 

 

 

 

      

Carol-Ann Palmieri

Al and Cal Realty Group

Remax Executive Realty

www.AlandCal.com

 

Cal@AlandCal.com

 

508-494-9061

 

Comment balloon 21 commentsCarol-Ann Palmieri • May 20 2013 05:12AM

Comments

Carol Ann, that some times is where the agent with some foresight can guide the client and if they are reasonable be able to see the logic.

Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (RE/MAX Professionals, CT 203-206-0754 ) over 5 years ago

Happy Monday Carol Ann!  Less is often more...more time, money, and potential headaches.  Buyers need to weigh their options carefully before opting for a particular home.

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) over 5 years ago

Suggested!  This applies to many things, including using a Realtor®!  Trying to save money on DIY projects and things that ultimately you should use a professional for will in the long run, cost you a ton!

Posted by Brenda Mullen, Your San Antonio TX Real Estate Agent!! (RE/MAX Access) over 5 years ago

I was having a similar thougtht this weekend...someone spends all of their money on the downpayment, then what?  Now they have no money left to fix anything up... Seller concessions?  They can help out a lot of people.... 

Posted by Rich Antonino, Charter Captain and Fishing Show Producer (Black Rose Fishing Charters and CastNCrew Fishing Show) over 5 years ago

So true Cal, and the time and effort and money it takes to fix up that home are usually underestimated.

Posted by Al Raymondi, Ormond By The Sea Florida - Home and Condo Sales (Ocean View Realty Group in Ormond By The Sea Florida) over 5 years ago

Hi Ed.   Very true.  Thank you!

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago

Hi Anita.   So many options to weigh and this is one that is often overlooked.   Thank you!

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago

Hi Brenda.  You have been talking to brother Rich I see!!!   LOL.  Thanks for the S.

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago

Going through that scenario with a couple at this time....A great bargain at what cost?

Posted by Ronald DiLalla, No. Orange Cty Real Estate (Century 21 Discovery DRE 01813824) over 5 years ago

Hi Rich.   A great optin that might help pay for upgrades.  Thanks for weighing in.

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago

Hi Al.  You can say that again!!!!!  :)

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago

Hi Ronald.   It is so true.  Had to see with that jingle playing in your head.  Thanks!

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago
I couldn't agree with you more. My father used to call that, "Penny wise and pound foolish."
Posted by Melanie Narducci, Your San FranciscoBay Area Real Estate Expert (Hillscape Properties, Inc.) over 5 years ago

Cal, Congrats on the feature. You are very correct as too many folks try to go cheap only it ends up costing themselves a lot of cash and time. You get what you pay for and in this market prices are going up quickly. 

Posted by Robert Bob Gilbert, Your Katy TX ( West of Houston) Real Estate Expert (Berkshire Hathaway HomeServices Anderson Properties) over 5 years ago

So true Cal. You will always run into the buyer who thinks they are a DIYer. But instead of a beautifully refinished home, they get a headache and a blow to the ego when they have to call in a professional to fix their "handy work".

Posted by Suzanne Otto, Your Montgomery County PA home stager (Six Twenty Designs) over 5 years ago

Al & Cal, 

Fabulous post.  Smart spending is important in real estate.  There are cosmetic items one seller might have that look better than another listing, then there is a huge "maintenance factor" that buyers should not overlook.  I'd much rather help buyers get a property that is well maintained as there will be less surprises down the road.  

I'm a huge sale shopper, but value is key whether it's for cloths or a house!!!

All the best, Michelle

Posted by Michelle Francis, Realtor, Buckhead Atlanta Homes for Sale & Lease (Tim Francis Realty LLC) over 5 years ago

Buying a home is a big big thing, the most important buying decision for most of us. Yu really have to look at where the market is going & what type of condition the home is really in & what is the real cost to bring it up to speed.

Posted by Jimmy Faulkner, The Best Of St. Augustine (Florida. Homes Realty & Mortgage) over 5 years ago

This is a great advice for many buyers - specially first time home buyers (when they think they are handy!)

Posted by Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners) over 5 years ago

Hi Melanie.  That's the second time I've heard that saying in days.   I had forgotten all about it, but oh, so true!  Thanks.

 

Hi Bob.   Thanks.   Really crazy, isn't it?  

 

Hi Suzanne.   Those shows make it look so easy, it's no wonder folks are tempted! 

 

Hi Jimmy.   So true!

 

Hi Praful.   Think being the key word!  

 

Thank you all for reading and taking the time to comment on  my blog.   I appreciate your comments. 

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 5 years ago

Carol Ann, Excellent advice and sometimes us Realtors can be like the cobbler without shoes when it comes to purchasing properties for ourselves...I am not even going there with my current abode!

Posted by Christine OShea (Christine E O'Shea Real Estate Broker) over 5 years ago

Hi Cal,

Thanks for commenting on my market report as I really appreciate. I hope you folks have are havinga good and productive week You folks are definitely workaholics and need to relax once in a while. 

Posted by Robert Bob Gilbert, Your Katy TX ( West of Houston) Real Estate Expert (Berkshire Hathaway HomeServices Anderson Properties) over 5 years ago

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