OK, so I’m a little off my regular topic of discussion about being a professional in our industry. I can’t seem to help it today with the things I’ve had to go through with new buyers (under 30).
I think all of us are dealing with it, so why not talk about it.
Seriously!!! It’s this new generation of buyers. I thought when I started buying real estate I wanted everything. I would have liked an updated kitchen, a beautiful landscaped yard, big bedrooms, walk in closet, ensuite…..I think you’re getting the hint. But, my first house and the next 6 were total fixer uppers. I had to put my back into it and make something of the house to ensure I was creating equity.
This past weekend and let’s just say in the past 6 months, I’ve had more first time buyers with champagne taste and a pizza budget. They want everything!!
I take a deep breathe every time I go through this and ask them a few questions…
Do you love the things that you parents have?
Answer: Absolutely, I want everything my mom’s kitchen has as well as a huge entertaining space.
Hmmm, sound familiar
Do you know how much their home is valued at?
Answer: Not sure, maybe a million?
Hmmm, and how much of a down payment do you have? How much money do you currently make?
Do you want to still have a social life? Travel, pick up with other friends or family and get away for weekend?
Answer: Absolutely, why would I give that up?
Hmmm, money grows on trees and I’m a fairy god mother. For me to make this happen for you, I’m going to have to fast forward 25 years of hard work that your parent’s (and my) generation put in. Don’t forget all those times mom and dad said they didn’t have money for something, ya it was because they had bills to pay. Keeping a roof over your head and trying to improve their station in life, plus paying for your life you became accustomed to. So, if you really want to have what mom and dad have be prepared to be smart about it. It doesn’t come instantly and the road along the way can be really rewarding, a little tiring, great character building and well worth it.
BIG ANSWER: Let’s sit down and work out what a monthly budget looks like for your dream place, versus the reality of what you can truly afford today and make a good first investment. Then when you see making a good investment can happen we can start talking about the next step. That’s making it your own by painting, updating and putting some sweat equity into the place you now want to call home. Good thing that down the road as your investment has been loved and improved as well as market increases you’re on your way to mom and dad’s life.
As agents it’s really easy to be frustrated or even worse, just get the client dealt with and move on. These clients are our best future business. Word of mouth to their young sphere of influence about how we educated them on the process is without a doubt the best and yes frustrating at times part of what you do.
So remember, as I have had to so many times recently. The first time clients are like elementary school kids, young and impressionable but ready for direction.