All right, everybody. I was talking this weekend to a friend, and they were telling me about a deal that their family member was involved in, and it just made me cringe for so many reasons. There’s enough material here for multiple videos, but I wanted to start with something that, while obvious, isn't always acknowledged.
After working with so many people over the last 10 years, I’ve noticed certain patterns. One thing I want to say is that it's okay if you can’t afford to buy a house right now. If you’re out looking at houses with your agent and nothing is working — the things you want and what you can actually afford don’t align — I think you’re better off waiting. I know that flies in the face of so much advice you see online, especially considering the last four years where house prices have gone up 50% in most places. It seems like waiting wouldn’t be ideal, but it is if you can’t afford what you want.
The problem with the deal I was hearing about was that they felt pressured to buy something immediately, even though they didn’t have the money. As a result, they started looking at houses that weren’t great to begin with, and that happens a lot. You have to ask yourself, if you don't see anything in your price range, maybe it's the price that's the issue. It’s not great, but people often get caught up in big life events like getting married, having kids, or starting a new job. Their finances haven’t caught up with these changes yet, so they’re out looking at houses and don’t like anything they’re seeing.
That’s where a good agent should step in and say, 'Let’s call off the search for a while, get your finances in better shape, and then get back out there.' On the other hand, a bad agent will push you to buy something quickly, which usually leads to ending up with a house you don’t like and eventually regret purchasing.
I know it's crazy with house prices right now. Many experts predicted that when mortgage rates came down, there would be a big rush of buyers flooding the market and everything would be wonderful. That never made any sense to me. With house prices up 50% in four years, it’s going to take a lot for many people to afford a home now. So maybe the best plan is to wait.
Think about it: if you're not seeing homes that match what you're looking for, you should be able to see three or four houses every weekend that fit your criteria. If you’re not, then it’s probably a financing issue. In my experience, it usually works out. I might meet someone who, at first, can afford a $200,000 house and wants a three-bedroom, two-bath home in St. Louis. That’s tough to find for under $200,000 right now. But after about a year, they revisit the market, and now they can afford more. They’ve made adjustments to their finances, and now they’re in a better position to buy a house that suits them.
So, be patient. Don’t feel forced to buy something you wouldn’t otherwise purchase. With that, I’m going to head out. Thank you for watching, and I’ll catch you later.