Nicolas Manetta-“Those who don’t think outside the box are easily contained.”

“We have reached a tipping point,” real estate market experts are saying.   They point out that more homes are being listed for sale, and the prices are still rising, but not at the double-digit frenzy we have seen over the last year.

Homebuyers are stepping back into action and making offers on homes now that there may be only five competing offers on the house they want instead of twenty-five offers.

Buyers want to lock in a fixed mortgage rate in high two’s or three’s to give themselves an affordable house payment and a design on building their personal wealth.  

Home sellers sitting on the fence are now staking the “For Sale” sign out in the yard.     While home prices are high and demand is red hot, sellers want to realize the highest profit and not regret later that they did not sell high when they had the chance. 

Home prices and borrowing costs that continue to climb crimps affordability on homes for sale.  Homebuyers who are committed to get the life they want have to think outside the box.  If the home that fits their design is too high for their budget, they look for a home that they can convert to their desired design.   

Some homebuyers find a lower-priced fixer-upper home. We put together the special loan programs it requires to finance the purchase and the fix-ups.  

Others find homes that have not been refurbished in 30 years. If that house is surrounded by homes that have been remodeled and updated, then the chances are good they can buy it at a lower price and remodel gradually over time to get the home looking like they like it.

Then there are people like Charlie and his wife who were budget-conscious.  Charlie was in his 30’s with a wife and a young child and another baby on the way.  “The house we are in is a little cramped now, but when the baby is born, this house won’t work for us at all.”  He talked about a neighborhood where he and his wife were looking at houses.  

When I asked him questions about the price ranges of the homes in the neighborhood he was describing, his voice sort of trailed off. He didn’t finish his sentence. Then, without any warning, he just blurted out, “I don’t really want to buy an existing home anywhere.  What I really  want to do is build the house the way we want to live in it.”

When he asked which financing program would be best for him, my answer was the one he already knew to be true before he ever asked. The real question was, “Where will you be happiest—in an already built home or the new construction home you design yourself?”

So many times, the best deal ever is the one where you follow your heart and figure out for yourself how to make it work.   Charlie and I started working on the money down and the payments per month if a builder built the house he wanted out in the country.  Unfortunately, the home they wanted was just too pricey for their current budget. 

After looking at a few ideas, he finally decided that he could afford to build the house they wanted if he didn’t finish the attic and left the bonus room unfinished.  Charlie and his wife could finish that part later 

“With small children, I wouldn’t want them trying to navigate stairs anyway. Then, when the children are a little older, and I have a little more saved back, we can finish out the upstairs, and it will be like having a brand new house.” He planned to consult with a realtor who knew the values in the area. He was going to get with a builder and then come back to me with some prices and terms we could compare on putting together his mortgage terms. 

As real estate and financing professionals, we have to open up the box and encourage customers to find ways to get the home they want with the financing they can afford. To help remember the most clever ideas, consider keeping a digital notebook of methods former clients and other pros have used to break through affordability barriers.  

Jo Garner, Mortgage Loan Officer  NMLS#757309 Sierra Pacific Mortgage Cordova, TN NMLS #1788 (an equal housing lender.)  Host of iHeart radio show Real Estate Mortgage Shoppe. Author of “Choosing the Best Mortgage-The Quickest Way to the Life You Want” available on Amazon, Barnes & Noble, and on www.JoGarner.com