A Short Guide to Buying a Better Home
Prices were relatively sane, rose, rose more, bubbled, and popped, leaving
the usual wreckage of euphoria induced
pump and dump.
Some people were hit, especially those who got in late to the musical
chairs game, hadn't established economic fundamentals, or greedily tried
to form business schemes around illusive newfound expertise in a
field they had never studied or understood, as if wealth gained from
playing in boom times would continue forever.
Others opted out, just as they opt out of most decisions and adult life
generally, preferring to choose only what appears before them
instead of deliberately seeking a desirable outcome and acting
according in a way that will get them to their goals. You can forever
sit on the fence, at least until
accepting every stray cat works its
undeniable erosion.
The impostors and scammed were thrown out and overturned, and then the
cleanup began. Extra capacity came onto the market, readjusting prices
near pre-bubble levels that now seem a bargain.
If you got in before the bubble and outlasted it, chances are you
were financially conservative and stable, and accordingly your wealth
has increased. Wealth makes greater wealth; debt and wasteful spending
makes poverty. A disposition of responsiblity affords you many options
for selecting a better home in the quiet period before prices begin
a more rapid acceleration.
Of course, if you disagree with that outlook, in view of the fragility
of major markets and bubbles in the developing world that could domino
elsewhere, or don't want to leave the place you call home, your position
is already strong and no one can move you out. You win either way.
-Jesus
February 1, 2014
First Effort
Your first house is a starter. You don't really know anything about houses,
certainly not their ownership and subtle aspects of living well, so much
of what drives your choice will be seen as wrong later, yet that knowledge
can only be attained by making a decision. Your cash flow was limited, so
your purchase was modest. Over years of living there, you've seen what is
good about it, what can be improved, and what needs a new house to do better.
Second Effort
Your second house will be closer to the mark.
- Scout the Area - Look at homes in the local area and better areas to
get familiar with desirable features in a home.
- Use Zillow, Redfin, and Trulia to look into properties. Track the ones
that capture your interest and get a feel for listing prices and eventual
selling prices. You'll see how competitive the market is in your price
range and how flexible listed prices are when deals get closed.
- Go to many open houses, picking the most interesting properties, even
if you are not intending to purchase in the near term. You'll see variations
on appealing themes and build a strong sense of layouts, materials, space,
light, and other essential determinations of homes you enjoy.
- Imagine life in those locations, both upsides and downsides. Consider
the interesting and quirky designs. To what are you better connected?
How will you change your life accordingly?
- Get a good agent. If you're going to close any deal, you need a savvy
and highly motivated person who can anticipate and steer past blockades,
offer decades of wisdom and advice, and use contacts to smooth the buying
process.
Your third house will be close to perfect, and you can only get that victory
by making a succession of good efforts.
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