Intangible Benefits of Homeownership; How To Win Hot Market Battles
33 Offers – Great News!
One of our clients was one of 33 offers recently! This is proof of how hot the market remains and it is very good news – because last year, we saw numerous cases where there were over 60 offers.
So, things are getting way better, right? 😊
Getting Offers Accepted In Hot Markets
This is a quick reminder that we love to help get offers accepted in hot markets by: (1) pre-approving clients so they can waive contingencies; (2) closing very fast – in 14 calendar days for conforming and FHA loans; 21 days for jumbo; (3) calling listing agents to tout the strength of our clients.
Buyers of course also need to make competitive bids, as no seller will leave $50,000 on the table in order to close 7 days faster.
Intangible Benefits Of Homeownership
Why My Friend Is Ecstatic With His Home
A close friend of mine was showing me around the home (a fixer) he bought in April of 2020 – and he was literally gleeful.
It was NOT because he has already made over $1 million in appreciation; it was NOT because he got a bargain during the height of the COVID crisis; it was NOT because the house is really cute; and it was NOT because he is in one of the most desirable areas in the country.
It was because the house had become one giant canvas for his creative efforts, as he was opening up ceilings, bathrooms and entire walls to the outside and he was turning his yard into a veritable oasis with fruit trees, lawns, gardens, greenhouses and a beautiful view of the creek behind his home.
He was also doing much of the work himself because he found it so rewarding. If that house dropped to a value of $0 tomorrow, I honestly do not think he would notice or care.
I thoroughly enjoyed my visit because my friend’s joy was infectious, and it was a stark reminder of the intangible benefits of homeownership!
Why Aaron Moore From Our Office Is Ecstatic
In a similar vein, Aaron Moore from our BDO Team bought a home a few months ago and shared this:
“I’ve woken up every day for the last 9 weeks so thrilled that I own my own home now (and so thankful for the amazing team that made it so simple for me!) The air is so fresh compared to the industrial wasteland where I rented the last 5 years. Our bedroom window into the backyard is always a view of dew on the plants, and sometimes fog rolling over the trees; we feel like we’re at an Airbnb in the mountains!
Is it a huge perk that it’s going up in value rapidly and I may be able to refi out of MI as soon as mid-next year? Of course it is, but even if the value was declining, our goal was to get ourselves into something for us, and that increasing value is just the cherry on top. If the first thing I did before even rolling out of bed was check our value on Redfin and see it going red, I would still simply shrug my shoulders and get on with my day.”
This is why I often suggest to agents to have a conversation with their clients about their ‘why,’ and suggest that agents say something like this to their clients: ‘While I do personally believe the value is going to go up over time, a lot of ‘experts’ have been wrong over and over in the last few years. If your goal is to get into a house that increases in value 10 times over the next few years, you might want to bet on some random crypto. But if the goal is to secure a place for you and your family, that likely will increase or at the very least hold its value, I can certainly help you with that.’”
In September, I blogged about the #1 reason renters want to buy a home, and that reason was: “The flexibility to do what you want with the space.” It was not the financial benefits, interestingly, and the experiences of the above buyers illuminate that fact.
In that blog, I also referenced this blog: Homebuying Hell – in which our Marketing Director shares the true “hell” she went through when trying to find her dream home – and how it was 100% worth it!
She is extremely artistic and has also turned her home into a giant canvas for her creative energy – and she too is now in homeowner heaven – irrespective of appreciation!
Two Points To This Blog
There are two points to this blog.
- Intangible Benefits > Financial Benefits: We should all remind our clients of the intangible benefits of homeownership because they often end up far outweighing the financial benefits – in ways that clients probably do not appreciate until they buy.
- Hang In There: We should all remind buyers to hang in there, no matter how competitive the market is, because they will find a home sooner or later… and that will more than justify all the effort.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167