When searching for that dream home, most buyers want to find one they
love and can see themselves living in happily for years to come. In my
experience, most buyers prefer homes that are move-in ready with minimal
upkeep. Most buyers start that search online; they know what they are
looking for, and many times they know roughly the price range they can
afford.
Oftentimes, however, those two things come into conflict as buyers
get closer to finding the right home. I see this frequently where a
buyer starts out working with 65 to 75 percent of their loan
prequalification number in order to be prudent and financially
responsible by not seeking the most expensive home they could possibly
buy. Then, inevitably, when they can’t find what they want for the money
they want to spend, they start edging up on the listing price to find
those homes with the amenities and finishing touches that they are
seeking.
At this point, I always encourage a buyer to ask the question for
themselves: “Where will I have to compromise?” Will you have to let go
of the pool to fit into your price range? Maybe less hardwood flooring
and no granite in the kitchen — or are these a must? Will you land in a
home that’s a bit smaller in order to be in a better school district?
Can you pay a bit more to be closer to recreational resources, such as
parks?
The National Association of Realtors posed these questions to
homebuyers to find out where compromises had been made on home purchases
over the past year. The results, which can be found in NAR’s
2015 Profile of Home Buyers and Sellers,
showed that while a third of buyers said they did not compromise at
all, most let go of something that had been on their wish list.
What was the biggest area of compromise? It was on the price of the
home. Almost 1 in 4 respondents negotiated what they ended up spending
on a property. Close behind on the list of compromises was the size of
the home — 20 percent of buyers reported compromising on size. Other
areas noted included lot size, the condition of the home, the commute to
work and friends or family, and the quality or age of the neighborhood.
As a broker for more than 15 years, many of my clients have followed the same routine..They look at the inventory of available homes and
school districts, and end up buying a smaller home in a newer
subdivision located in the highest-rated school district in their market.
For brokers, I think it is key to
know the area rankings on local schools, as this is probably the one
area where most of my buyers will not negotiate when finding a home.
Buyers will know schools by scores or rankings and reputation, so it is
imperative that you can be the area expert and know them just as well!
If there are school-age children in the home (or there will be in the
next couple of years), school districts are vitally important to buyers.
You can start to help your clients adjust their expectations (or
their price range) by reminding them that everyone goes through the same
process. We start with what we want to invest into a home purchase, we
make a wish list of criteria for that next home, and then we have to
make adjustments to one or the other. Discover which areas are most
negotiable, and you will be able to focus on how to help them achieve
their goals more effectively.
Ron Goldstein,MBA
VP of Sales Jameson Sotheby's International Realty
Premier Sotheby's- St. Pete/Sarasota
Ron Goldstein,MBA 
