How the buyer’s triangle can help you evaluate your home-buying needs.
Today we want to talk about buyers and how we help them make decisions. We use a system that we like to call the buyer triangle, and it’s helped countless clients get into homes they love.
What is the buyer’s triangle? Imagine a triangle where the top point is labeled price, and the two side points are labeled condition and location respectively. These are the three categories we use to find a home, and each is super important.
Price is dictated by what you can afford. Interest rates are rising, so we’re starting to see some adjustments to financing. Adjustable-rate mortgages, people buying down interest rates, and lender-paid mortgage insurance are becoming more common.
The second point is location, which is all about where you want to live. We have seen people start to loosen this restriction. With more people working from home, location has become a lot more flexible. Instead of proximity to work, the biggest concerns are lifestyle and being close to family and friends.
“You’ll have to compromise on one point in the triangle.”
We’re also seeing a lot of schools with opt-in programs. If you’re worried about getting into a specific school district, check if that district has an opt-in program. Let’s say you were living just outside of an opt-in district. You’d be able to request that your child attend that district. However, it’s not guaranteed, and you’d need to look into it for each home.
The most emotional point is the condition. This includes how many beds you want, what you want the layout to look like, etc. Unfortunately, with the inventory being so tight and interest rates rising, this is where a lot of buyers compromise. They’re giving up quite a bit on the condition.
Try to think about the big picture. At the end of the day, you’ll build wealth in real estate as long as you can stay in a home for five to 10 years. Most economic cycles only last seven years. Remember that you can only have two of the three points above a certain degree. You’ll have to give up on one.
If you have any questions or want more information about the buyer triangle, feel free to call or email us. We would love to hear from you.
