A few days ago, I was asked why I have a real estate site and never blog about real estate. As the name of the website states, I am more than a realtor. I am deeply passionate about real estate, yet I have more passions than real estate, hence the name: “My Passion Blog”. When I absorb myself in real estate, and give it 100%, at the end of the day, it is deeply cathartic to sit and write, just for the sake of writing. I never have a topic in mind. I allow myself to be guided naturally. Today however, I will talk a little bit about real estate.

Real estate seems to be a topic of interest to just about everyone. It can range from buying, selling, investing, upsizing, downsizing, commercial, and the list goes on. As a realtor, I get asked a lot of questions. Two questions always top the list, especially as of late.

#1…Will I be able to afford to buy a home?

Recently I met with a bright eyed, excited 25 year old who is excited to purchase her first home. As I sit in awe of how prepared she is at this young age, I reminisce back to my early twenties. Without a doubt, real estate was not on my mind. What makes her so ready for this big step? Is she not facing the same economic issues like everyone else? So many people are concerned with the prices of homes and do not know how they can ever afford to own their own property.

I answer this question by quoting Henry Ford: ‘if you think you can or think you can’t – you’re right”. Once we set a goal, and believe in it, we start to move in a direction that gets us closer to our goal. This for many starts with making some adjustments to our lifestyle and determining our “clear” needs. Some questions to ask ourselves are: How many designer purses do I need? Do I really need that extra pair of shoes? Do I need a new car? Must I purchase that overpriced coffee twice per day? Making adjustments such as these will prepare you for home ownership much sooner than you think.

Speak with professionals: a financial advisor, a real estate salesperson, and a mortgage broker. These professionals will help guide you accordingly. Speaking from experience, I learned that to become a home owner, I had to step backwards to be able to move forward. When I purchased my first home, I moved into my mother’s small apartment to help save for this investment. My daughter shared a room with her grandmother for two years. I turned down many invitations to different events, and learned to live within my means. I was laser focused, and almost two years to the day, I achieved my goal of being a home owner.

Another obstacle is being closed minded. Many would be buyers limit their option by remaining inflexible. Location is one of the biggest inflexibility. While we can change a lot of things, we cannot change location, and as such it should be deemed important. However, properties in the desired location may be well above the budget. Remember, this is your first investment, and may not be your last. You may have to start outside your preferred area, and work yourself back to your preferred location.

This all may be uncomfortable for a moment, but the journey will make for a rewarding and fulfilling destination. It is short term pain for long term gain. The key is to buy and wait, rather than waiting to buy.

#2…Should I enter a bidding war?

The market is excitedly hot! We are in what is known as a seller’s market: low supply = high demand. These days, before I even get a chance to book a showing, the property is sold, often well over its asking price. The other scenario is not being able to put forth an offer until a specified date, per the listing agent’s instruction. Deferring offers creates a frenzy of anxious and excited buyers. Quite often, the property is listed below market value, but sells much over market value. The biggest reason for this is buyers get caught up in their emotion! Homes are being sold firm which means there are no conditions to waive, example, home inspection and financing. This makes it especially hard to compete. While many are entering these bidding wars, many will not, as it can become quite overwhelming for buyers. To answer the question, YES, I encourage my buyers to enter bidding wars. While sellers are looking to capitalize on their investment, other factors can work to one’s advantage.

Last week, I encouraged my buyer to enter into a bidding war. This is after we did our homework, and my client was confident of what her best and final offer was. The listing agent asked that I email the offer to him. I explained to him that I would not be providing the best service this way to my client, and would rather meet in person, to which he obliged. Upon arrival, I presented my offer, and used this opportunity to speak about my client beyond the scope of the agreement. She became more than a transaction, but an actual person. The listing agent explained that I was the only realtor who requested to present my offer in person, and that he respected my integrity. Though we did not have the best offer, as the offer had a financial condition, and we did not have the best price, we won the bidding war!

When I purchased my current home, I won a bidding war as well. This time, I thought it was my skills as a realtor. While my skills helped, the seller’s reason for choosing me was very personal. His father had passed away the year prior, and was buried the same day as my chosen closing date. For him this was significant, as he felt this was his father’s way of saying “yes, this is the right person”!

I love real estate, and I love interacting with you! Keep your questions coming, and I will answer them as best I can. I am available to serve you with passion and purpose.