Handling Infatuation in Home Buying


Emotional thinking appears significantly at play in home buying in major U.S. cities these days, a situation which underscores the importance of having a real estate agent who can provide an objective viewpoint on available properties. A recent market survey showed that “falling in love” with an available residential property come as a prime enticement for those in search of American homes for sale.

This survey was based on the frequency of the word “love” in the copies descriptive of properties found in the Multiple Listing Service and similar residential property finders. Sarasota and Bradenton emerged as No. 2 and No. 10 in this poll, respectively. Six other cities in Florida landed in the top 10 of the survey conducted by the Chicago-based online resource HomeFinder.

Price domains of the most “loved”

Handling Infatuation in Home Buying

In Sarasota, the research showed 132 listings which included “love” in their copy. The HomeFinder researchers found 81 similar instances among Bradenton listings.

The price levels of homes in Sarasota that buyers are enticed to fall in love with gravitate toward the higher end, at asking prices averaging $650,724. In Bradenton, the average price was estimated at $463,020. These compare with the $197,793 average price of “loved” homes in Louisville, Kentucky, which ranked tops in the survey. What these homes have in common is that they are over 1,500 square feet in floor area and have at least two and a half bedrooms and two baths.

An ally in getting to the brass tacks

Professional real estate agents have valuable contributions to make in tempering the infatuation that may cloud the decision-making of home buyers on the property that best suits their needs and budget. Seasoned brokers, for instance, would typically recommend that buyers consider not less than five possible choices in order to avoid overpaying and remorse later.

The brokers’ expert advice is also extremely valuable with the current uptrend in the cost of home financing and the new mortgage requirements that came into effect this year. The thinking among seasoned realtors is that the loan market’s conditions nowadays have made it even more necessary for buyers to shop around for the best mortgage deal available.

Bargaining power emerges

Due to the recent upsurge in mortgage rates, lenders have lost a significant portion of their refinancing business. Thus, lending institutions can be expected to focus their attention on homebuyers and compete fiercely to draw borrowers. This increased competition provides some bargaining power to home buyers, something which they sure would want to take advantage of.

Broker assistance on loan documentation would likewise be valuable as buyers now need to have good records of their finances for submission to lenders. Under the new mortgage rules, the lenders are under more pressure in verifying the borrowers’ capacity to pay. The documents which lenders will need from applicants for mortgages not only include the tax returns and W-2s of borrowers. They may also need to produce investment accounts and bank statements. With these new rules in place, loan closings can even hinge on the explanation of gifts that were deposited in the borrowers’ bank accounts.