January Buyer Tip-5 Questions

It’s a new year, and already the questions about what 2010 will bring are POURING in…as, unsurprisingly, are the pseudo-answers. Ira Glass, host of public radio program “This American Life”, had a great commentary on the uselessness of predictions, in particular his feelings about The Economist Magazine’s annual prediction issue, in his show a couple of weeks ago. You can listen to the program here…

You all know that I’m not in the business of predictions. Unless, fer instance, the question is “Will Larry open that last bottle of wine?” For things like that, I’m usually bang on. Instead of predictions, I’m going to give those of you considering BUYING a property this year some questions to help you make up your mind. For each question, I’ll ALSO talk about why it’s important to think about it. Remember, there are no right answers…

1) How stable is your job?
Even if you’re looking at a great deal on a property, if you look around you and see waves of layoffs at your company, and the guy next to you just got his pink slip it’s very possible you’re the next head on the block. If you lose the job, can you still afford the place you’re considering? This is especially important for single-income families to think about. If you’re in sales or marketing and heavily commission based, even if your job is secure, what income fluctuations may loom?

2) How are you “fixed” in your current housing payment?

If you rent, are you looking at doubling or tripling your monthly housing payment? If you are an owner right now, will you be able to get terms that are more favorable as you have currently?


3) How much do you love the property/neighborhood you’re looking at?

I have a colleague who was looking at buying a condo in the SF Bay Area. He and his wife liked it a lot. They didn’t LOVE it enough to believe that, if they ended up without any extra cash for a few years, they’d be perfectly happy re-arranging the furniture every Friday night instead of going out to dinner and a movie. They walked away and have never ever regretted the decision.

4) Where are you in the family planning stage?

If you’re just starting, do you really need that second bedroom already? If your kids are grown and out, do you want to have room for them to come visit or does the excuse “We just don’t have enough space for everybody for Christmas” sound like an EXCELLENT way to justify a trip to the Bahamas for the holidays next year?

5) Do you have the skills to take care of any issues that may pop up in a fixer-upper or bank-repo’d home you buy?

I know several people who made great deals and learned how to take care of some basics that the previous owners let slip while the place was undergoing the foreclosure process. They knew they could figure out a leaky pipe or a sagging porch and avoided spending money on contractors.


Remember, Rebels, there’s no right or wrong. There’s also no guaranteed good/bad time to buy. The Real Estate Rebel formula is simple: go in with your eyes open and consider your risks.

Of course, if all else fails, ask the Magic 8-Ball. The signs always point to “maybe”…

Rebelliously,
LARRY