i want to get a multi family house and my credit score is almost 700.... i only work part time right now but will that matter if the rental units count towards my income??? and i would also like to use my spare time to try my hand at starting a business so that would be such a great situation.....
Very well said. I was shaking my head when he kept on saying. "They will tell you what you can afford". No. They will tell me my credit worthiness, but I might not be able to afford a $400,000 house. Paying $3000 a month for 30 years. (Just to say something. I haven't calculated in the system)
I agree with most of what you said. Disagree on renting. Reality is many people move more than once in a 5-year period and if you're doing that, buying a property only to sell it a few years later may not be a sound financial decision. Not sure what market you are in. Sounds like $60k gets you a good home. In my area, it's a down payment. It's hard to offer catch-all advice on buying vs renting. In my area, I see a lot of first time home buyers buying for the wrong reason only to sell a few years later. There are other videos where I mention not to buy the first home you see. Thanks for watching!
When you start the whole process , not only do you need to be pre-approved, but you should also be able to buy a home on one income, We didn't buy until we knew this was possible , and its a good thing we did. 8 years after we bought our home, my husband suddenly passed away, leaving me to raise our children and take care of everything. Because we have always been smart with our finances, our children and I are doing well. Now we are selling, and moving to another state, after 16 years total of living in this home. I've been on both sides of it , buying and selling. 20% down is important, as is having an emergency fund in place. Owning will cost you more than you think.
+momof2 This was great, I have been researching "when you buy a house how much do you put down" for a while now, and I think this has helped. Have you ever come across - Siyamilla Financial Bigshot - (search on google ) ? Ive heard some pretty good things about it and my m8 got cool results with it.
Needs to be said that just because the bank says you qualify for xxx amount doesn't mean you can afford it. The bank cleared me for $400k and I make $55-60k/yr. That's absolutely insane, no matter what my credit score is! It's no wonder people buy homes they can't afford when banks pre-qualify people for stupid amounts. Ended up buying a home for 155k.
I’m actually very impressed with myself, I was basically already thinking everything you said in this video. Now I feel more confident that I’m on the right track!
Thank you for mentioning that renting is not always throwing away money. I have rented for years because I wanted to pay off student loans. While my entire family told me renting was the worst thing I could do. My gut instincts told me, I wasn’t ready for a house. Now that I have paid off my loans and still have minimal credit debt to keep my credit up, I feel a bit more comfortable about looking into buying a house.
There isn't anything wrong with renting.renting tell you how capable on paying and teach you to be a responsible person before planning the next step.people shouldn't buy if they can't pay when thier renting.its like fast in and fast out.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
@@bob.weaver72 Personally, I can connect to that. When I began working with “Catherine Morrison Evans’’ a fiduciary financial counsellor, my advantages were certain. In these circumstances, I would always advise getting professional help so they can steer you through choppy markets and just give you indicators and strategies for knowing when to enter and exit the market.
My checklist. I will not get murdered in that neighborhood. Roof doesn't leak. Wall (exist) Backyard with a fence around it. 2 car garage. Usable kitchen. Everything else can be fixed/upgraded.
I agree about not falling in love with the house. View it as a business deal because that’s what it is. Business is business and personal is personal. Your emotional feeling about a property is personal. Leave it out of the deal
1. Get pre-approved first before looking, know your worth first. 2. House should meet 75% of your criteria, perfect house does not exist. Do slow upgrade with time 3. Listing agent to represent YOU is not a great idea 4. Don't look too much into home ONLINE value (you can never accurately estimate a house without stepping inside it, people might have updated it) 5. Don't expect your house to increase in value (it might or may fall in value depending on the market). House increases your quality of living not anything else. 6. Do not underestimate your expenses (there will be maintenance costs and hidden costs) 7. Don't feel rushed to buy (Don’t put an offer before you are mentally prepared) 8. Don't fall in love with the house (act rationally). Houses will be sold and new ones will come to the market. 9. Don't assume renting is throwing money away. Renting is preferred if you will be leaving there only for a few years.
First time owner(still looking) and this is a great video! Also want to add that be sure to check HOA Policies BEFORE making an offer or escrow. We dodged a HUGE bullet of a condo with an awful HOA that fines for the most ridiculous things. Not all real estate agents disclose this before or if you don’t ask.
I fell in love with a house and it broke my heart when there were too many issues. Knob and tube wiring, foundation problems, non permitted structures. Took me a while to get back into a logical mindset and I just had an offer accepted on a house that may not be my “dream home” but works, it’s updated where it matters, cheaper, and has the potential to become my dream home over time.
Great video.... but, can you further clarify rule #9? When you say, "the fallacy that renting, is throwing money away..." and "... that they're buying a home when they should be renting..." Because regardless if someone is moving every two years or not, renting is never an investment...
A lot of agents simply won't work with another agent, at least in my state. I went to view a property with the seller's agent, and then got myself a buyer's agent. He told me he couldn't work with the seller's agent unless he had permission to do so. I asked the seller's agent, and he politely turned me down. I should note that, while both agents were very nice about it, they were both somewhat baffled that I thought that the buyer and seller would have separate agents. That struck me as odd, since it seems to be very common advice from internet estate agents. I am now working solely with my buyer's agent and not contacting seller's agents at all.
Looking at houses now, we have 4 items that the house absolutely needs. Anything else, as long as it works and is liveable until we can upgrade, then let it work
Matt has a great point. You definitely don't want to have the listing agent represent you as a buyer. The main purpose of having a buyer’s agent is for their ability to counsel you, protect you, and advise you. If you work with an agent that represents both the buyer and the seller you may get counsel and advice that might not be in your best interest because a listing agent’s loyalty lies with the seller.
I’m glad I found your channel. My husband and I are finally ready to buy our first home, after 11 long painful years of waiting. I am excited but I am also going to be smart about it. Thank you for sharing this information!
I don't let anyone tell me what I'm "allowed" to buy, telling me i'm not "allowed" to buy something means your competitor just gained a customer that you just lost. The best thing you can do in that situation is tell me I CAN buy it but I need a lot more down, because I'd go work extra hard for something I really want.
Years ago when I was married my wife and I bought our first house that was built just for us in a brand new neighborhood. It was the 2nd house on that street complete with a privacy fence and it was a nightmare from day one. They gave us low grade carpet but charged us for high carpet thinking we wouldn't see the difference. The ducts in the AC were too narrow so it was always breaking down. Warranty pays for parts but not labor. They built houses in back of us on a hill so we had no privacy and drainage ended up in our back yard. Property tax was outrages. Will probably never buy a house again.
Erick, if you're a homeowner, you might be interested in taking advantage of electric savings, that 26% tax credit, and increasing your home's re-sale value as soon as possible. Check out Soleeva's tech-advanced panels with the only 30 year warranty in the market. You can email me at aisha@soleeva.com for more info.
I disagree with his very first point, why would you get pre-qualified and take that hit to your credit score (for the inquiry) unless you're absolutely sure you're going to be making offers? I AM a first time home buyer and did this his way, in the end I gave up home shopping because I don't have much of a down payment and decided to wait until the market goes down again. So my credit score took a hit FOR NO REASON! You can go look at houses without being pre-qualified, just because you're looking at houses does not absolutely mean you are going to be making offers. Also, on his note about "being told what you can afford", lenders will qualify you for way more than you can afford (they did with me) so that won't tell you anything! YOU have to figure out what you want to afford for yourself, a lender will not tell you honestly what you can afford. If you don't want to be "house poor" then DO NOT believe a lender when they tell you what you can afford.
Thanks for your comment. Most serious buyers get pre-qualified because they know they will be making an offer on a house in the near future. If you don't get pre-qualified before you look at houses for sale, just know that you're already behind other purchasers in the process so when the time does come to write an offer, there could be delays. Keep in mind the amount you'll need for your down payment throughout the process. Best of luck on your purchase in the future!
I allowed a lender access to my scores when I was not ready to buy. My scores dropped by 2 points. I learnt my lesson .no more hard enquiry until I m definitely ready to buy. In the meantime,I m "window shopping" for a home! Just feeding my eyes.. online
you can recover those points fairly quickly, and I started looking at houses without a pre-approval, I had NO IDEA what I was doing. Its way better when you contact a lender first and now at least know what you can afford or even make projections of what you will able to afford in about a year. Not to mention that lenders like Quicken Loans will support you through the process of getting your finances in order and raising your credit score. I'm not kidding they took me from 420 to my current 728. God bless them, they for sure earned that extra 1% they charge compared to other companies.
In the process of house hunting, you just leveled out my approach to things. Taking a step back and not putting the cart in front of the horse. Thank you !!!
Haley, if you're a homeowner, you might be interested in taking advantage of electric savings, that 26% tax credit, and increasing your home's re-sale value as soon as possible. Check out Soleeva's tech-advanced panels with the only 30 year warranty in the market. You can email me at aisha@soleeva.com for more info.
My god - thank you!!! I have been trying to find agents with integrity to do a quick break down before buying and all they want to do is call and get me going before we are ready.
Renting is absolutely throwing away money, if you're young and moving around every 2 years you don't really have a choice. I don't know one wealthy person "retirees not included" that doesn't own at least one property. Let just say you spent 60K to rent an apartment for a few years, at the end of that time period there is absolutely no ROI. To put that in perspective you could have bought a small 2 bedroom condo in ok condition, replaced a little flooring, painted, and made some cosmetic improvements to the kitchen and bathroom and made a healthy little profit while having a place to live for a few years. But please rent one of my properties by all means, I would love to take the wife and kids to the Bahamas using your money. Oh and go to Sears and price some stainless steal appliances, realtors sell this like they're solid gold, but they're only a few grand in reality and add a ton of value for no reason other than appearance.
It's not that simple. It's not throwing money away if you live somewhere where rent is cheaper than the money you'd "throw away" to property taxes, HOA fees, general house maintenance, closing costs, not to mention your personal time ensuring your property is in good condition, potentially longer commute times, etc. The math and logistics don't always work out. Also, the money invested in the market could potentially give you better returns in the long run than the increasing value of your home (with much less work involved maintaining your portfolio than a physical asset).
Lol! In CT the cheapest you are going to find is 85-90k and up for a 1 br, and those are usually in crap locations. Condos easily go for 150-300k around here. No way I could afford that when I was starting out. Year number 11 teaching and I just got my Master's and paid off my student loans. Not everyone lives in your Cinderella fairy-tale.
Not necessarily. Sometimes renting allows you to put cash in other investments, plus frees up your time. If I don’t worry about fixing plumbing I can worry about my other job.
I'm at a point in my life where I am CONSTANTLY having to defend my choice to rent. In fact, I clicked on this video because I was ready to break-down and buy so I can feel like my life is on track. But I'm moving to a brand new city across the country I have no idea if I'll like, I've never stayed in one place more than 5 years in my adult life, I'm moving to a seller's market with record high home prices, and I don't have any kids. Even knowing all that, I still can't shake the feeling that I should own my own home by now.
Matt Leighton Just watched your video on hidden costs. My friends and family can go pound sand. That's ridiculous right now. I'll circle back to your channel when I'm ready to buy. Thanks for the tips!
So many great solid points, that some of them even made me laugh. I also love the yelling, Matt. It shows confidence and knowledge. My husband and I would love a realtor like you!
Thank you for walking down the steps with me. This will be the first of many videos I will be watching in terms of home buying. We only have a limited time before we have to move. I wish we can take our time, but we can't. This summer is going to be very stressful for me and I'm going to have to exercise all the energy I can to help us find something whether it is buying or renting...These tips helped though. Thank you.
Just because you didn’t get pre qualified does not mean you lose. I’ve gotten a lot of information under the pretense I was buying a home. Many realtors have a lot of insight into tips about buying a home and that alone is worth the trip regardless of not having a pre approval letter
Buying a new home is a huge milestone, but it can also be a daunting task for first-time home buyers! Always talk to a professionals to be guided in homebuying.
Thank you Matt for being straight up and honest about the whole deal. We should have people like you and with the same mentality as you who know the job well and will not lead people in a wrong direction in the real estate market. Good job and best of luck to you.
It took my wife and I 3 1/2 years to find our home and so thankful to have our home. Walked through hundreds of homes and including online. Went through 8 realtiors because they all wanted us to buy the first home we walked into so I kicked them to the curb. Ended up buying our beautiful home at a auction without a lazy realtior. Our home has everything we have been looking for with miner up dates. Trying to Keeping up with the Joneses is a ticking time bomb for anyone..
Congratulations on finding your home! Wow, sorry to hear that it took you 3.5 years and you went through 8 agents 😬. If an agent is pressuring you to buy the first home you see, definitely get a new agent. Sounds like it worked out in the end. Sorry again about the lazy real estate agents. Hopefully they get better or go out of business.
Thank you, can't rush a investment and we are very picky, the homes just didn't feel home when we walked through them. Buying a home is like russian roulette and gotta learn to walk away when the house doesn't favor your way and thats what we did for 3 1/2 years. We have lots of patience
hey matt! I Just want to say thank you to u!!!!! really really appreciate u!!!!!!! I just won my offer! but the most part because of u. I spend days to watch a lot of your video for the new buyer, IT help me a lot, give me so many ideas, and show me how everything steps by step. even some small things like send attached letters with your offer stuff. I never hear from anyone else before. and IT worked perfectly. I don't have any more else to say, thank you again! matt! you are the best! whoever watched this channel, you are so lucky lol
Thing is, the Zestimate is a lot more accurate on cheaper properties. It's pretty close to the comps that have sold in our neighborhood recently (110k - 180k).
How about buying a house (first time) and renting out the spare room to a friend? Anything i should worry about or do you think it is a good way to help out with the mortgage?
1. check 2. Ya, thats why we are working on buying a multi-family home, its easier to look at numbers, then I can just see if cashflow is there. 3. We are looking currently at a FSBO. 4. Ya seriously, zestimates are useless 5.ya, thats why we want to buy and hold and become landlords, and we hope over a long-term like over 10 years it will go up, we are looking at a 203k loan to put a ton of value in. 6. We have saved up a pretty solid amount, we could put down almost 15% but we are just putting down 3.5% so we can have capital on hand. 7. we've been looking for a few months now that our jobs have changed, we are ready to come in over asking on some places. 8. We are taking notes from bigger pockets brandon turner, he says to try looking at numbers more than anything, its been emotional, ...HOW CAN WE TRAIN OURSELVES TO NOT BE EMOTIONAL? 9. We have saved a solid amount and we want the money to work for us rather than spending all our time working for money.... does that seem like a good reason?
Thank you so much I will be patient I'm just getting information for when that time comes I would be more knowledgeable. However I am building towards it and praying it falls on God's time and will. I'm still young.
I was thinking the same thing. I'm looking into buying a co-op. I am a first time buyer and single so I hope this is the right move. Two of my closest friends work within the industry. One works at a mortgage bank and the other is a real estate agent. The best of both worlds.
Exactly. I made sure to have everything from W&D, stove, frig, curtains, rugs, furniture because that can be extremely expensive once you have a mortgage.
I'm glad you touched on zillow. Being from the north looking to buy a house down south and being disabled and not be able to get around much I'm trying to find something I like and buy without going first and I know that sounds crazy. But as long as you get the house inspected and have a buying agent could you give me any tips going forward if that's the only option I have instead of physically going there and looking
Matt Leighton I have to say, your video is awesome. You explained everything so well and everything you said, made sense to me. I've been told a million things by a million different people and have been very confused. You cleared that up for me and put this process into perspective. Thanks for making everything make so much sense.
That was very good. Thank you for the info. I am currently being there for support for my young adult son who is purchasing his first home. It can be frustrating but so exciting at the same time. I feel like we are getting closer to him purchasing a house of his liking.
Freedom mostly. From my experience, it seems like many people are rushing to buy a house because their friend bought a house or because their parents told them it was a smart investment. In reality, they end up selling the property a year or two later when they realize the property is too small, or in a neighborhood they don't like, or they took a new job... Sure, if you rent for 30 years in the same area and there are similar properties for sale, go ahead and buy. What I'm getting at is that renting is NOT a waste of money depending on the alternative. I'm a salesperson. I hope you buy. And I hope you buy for the right reasons. Also know that just because you're renting does not mean you're throwing money away.
It depends on WHY you are renting, and if you are able to buy a home. If you can't financially handle a mortgage (or cannot get approved for one), then renting is best. If you have kids, or don't want to be beholden to the whims of a landlord, then buying is best. It's throwing money away if you are doing it for the wrong reason.
I scrolled and didn’t see it so... 1) Not being pre qualified for a loan before going out and seeing houses. 2) Looking for a “unicorn” , your house should meet 75% of your criteria 3) Using the listing agent to represent you (they aren’t your friend) 4) Looking too much into a home’s online value 5) Expecting the value of your house to increase 6) Underestimating your expenses. Budget 1% of the purchase price for yearly maintenance 7) Feeling rushed. Don’t let someone force you to put in an offer before you’re ready. But also don’t drag your feet. 8) Falling in love with a house. You may end up overpaying. 9) Thinking renting is throwing money away. Think about why you want to purchase a house.
but I mean renting is throwing money away lol take a college graduate in their first job--stay with mom and dad for two years to save up a fat down payment on a home... don't "get out" of your parents' rules to go waste an absurd amount of money on rent. you're talking about a good life vs an okay life.
I just finished college and got a good job. I’m living with my mom and dad. Looking to put a fat down payment on a house by the end of next year. No shame.
Love the insights! Avoiding emotional attachments is key. It’s so easy to fall in love with a home but keeping a level head is crucial. I bet realtors could use something like ReelSane to whip up video guides on these topics without the stress of being on camera!
yeah you’re right about renting. hmm..I would like to move every 4 years, probably due to a promotion or job transfer. Maybe renting is the way to go for me.
Not at all, I am 14 now, where I live real estate is super cheap. And being inside all the time gives me so much time to plan for the future, which is never a bad thing.
12:45 Now is not the time to fall in love. I am still following that advice today and it has nothing to do with home buying. Though, I will also remember this advice for when buy my first home.
No there is only so far they are allowed to go. Real estate agents are expected to follow all laws and act fairly in their business practices. When the house goes through escrow it's protecting your interests and the sellers. It may not be allowed to go through escrow with broken laws. The title company may say hey what's up? You get title insurance. It comes with the escrow account. you can sue if a real agent breaks laws but if you don't know crooked real estate agents will try all of the time. Title insurance is supposed to protect you from some decietful practices but only some.
We need to get rid of our truck and trade it in for a car, but we are planning to buy our first home in February, my husband makes over $50k a year and we only have his income. could this effect us getting approved for a house?
Hello Erica, the short answer to your question is yes new debts can potentially affect your debt to income ratio which will also affect your mortgage terms and ability to get financed!
WHOA! A lender can't tell you what you can afford. That is absolutely horrible advice. That kind of thinking is why the market crashed back in 2008. At best, a lender can tell you what you *can't* afford. Just because you can get a loan for something doesn't mean you can afford it. Only you can decide what you can afford. Most people spend way too much on houses. If you can't afford to take 6 months off of work and still pay your mortgage, then you can't afford to buy that house.
It is estimated price that is based on different property value in the area...it serve as a comparison measure...they also include record of previous transaction alongside the current set price ...
![FNAF vs TF2 - Episode 2 [SFM]](http://i.ytimg.com/vi/z5b3V2-VLb0/mqdefault.jpg)
▶▶▶ Get my new book: 46 Condo Buying Mistakes NOW --> www.amazon.com/Matt-Leighton/e/B00RTVS6PY/
Matt Leighton how do I get started. I have prequlified
Send me an email. I can set you up with an agent in your area
Matt Leighton kn
HOA sux
i want to get a multi family house and my credit score is almost 700.... i only work part time right now but will that matter if the rental units count towards my income??? and i would also like to use my spare time to try my hand at starting a business so that would be such a great situation.....
i'm also getting tired of realtors not putting pictures of the inside of the garage! GUYS WANT TO SEE THE INSIDE OF THE GARAGE!
Johnny Knoxville HERE HERE!
amen, women dont believe me wen i say that lol
That's the best room for a guy.
It’s where the sellers store their junk.
Our place to put our toys ( cars )
WHY ARE YOU YELLING AT ME??
😂😂😂😀
Just grab/grasp the imp info he's giving ! hey it's free, just put your device volume down. He's not my son or father ! lol !!
Yes Drill Sargent!
1.5 speed helps
Is the cocaine
The lender tells you what you can borrow, not what you can afford.
Very well said. I was shaking my head when he kept on saying. "They will tell you what you can afford". No. They will tell me my credit worthiness, but I might not be able to afford a $400,000 house. Paying $3000 a month for 30 years. (Just to say something. I haven't calculated in the system)
Yeah I disagree with a lot of things that he was talking about.
Like what?
lol Number 2 about the backyard hit me... so true!!!
I agree with most of what you said. Disagree on renting. Reality is many people move more than once in a 5-year period and if you're doing that, buying a property only to sell it a few years later may not be a sound financial decision.
Not sure what market you are in. Sounds like $60k gets you a good home. In my area, it's a down payment. It's hard to offer catch-all advice on buying vs renting. In my area, I see a lot of first time home buyers buying for the wrong reason only to sell a few years later.
There are other videos where I mention not to buy the first home you see.
Thanks for watching!
But I thought it only took 30 min to fix up a home like hgtv Lol
+Jergon 27 😂😂
😂😂😂😂
LMFAOOOOO
JJ 27 lol
🤣🙃
When you start the whole process , not only do you need to be pre-approved, but you should also be able to buy a home on one income, We didn't buy until we knew this was possible , and its a good thing we did. 8 years after we bought our home, my husband suddenly passed away, leaving me to raise our children and take care of everything. Because we have always been smart with our finances, our children and I are doing well. Now we are selling, and moving to another state, after 16 years total of living in this home. I've been on both sides of it , buying and selling. 20% down is important, as is having an emergency fund in place. Owning will cost you more than you think.
+momof2 Great points all around! It's important to be (very) financially-qualified before such a big purchase. Thanks for commenting and for watching.
Thanks for the great tip.
momof2 did you have life insurance which would really help if a spouse passes away
+momof2
This was great, I have been researching "when you buy a house how much do you put down" for a while now, and I think this has helped. Have you ever come across - Siyamilla Financial Bigshot - (search on google ) ? Ive heard some pretty good things about it and my m8 got cool results with it.
Needs to be said that just because the bank says you qualify for xxx amount doesn't mean you can afford it. The bank cleared me for $400k and I make $55-60k/yr. That's absolutely insane, no matter what my credit score is! It's no wonder people buy homes they can't afford when banks pre-qualify people for stupid amounts. Ended up buying a home for 155k.
My 1 criteria into buying a home: not being haunted
How you would know before you move in? 😱
Me too! 😂
For reals lol I don't wanna wake up to a little boy making noises at 2 in the morning running around and disappearing or demonds
Gizmo aP get your house blessed
Nathan for you haunted real estate episode
I’m actually very impressed with myself, I was basically already thinking everything you said in this video. Now I feel more confident that I’m on the right track!
Congrats
Thank you for mentioning that renting is not always throwing away money. I have rented for years because I wanted to pay off student loans. While my entire family told me renting was the worst thing I could do. My gut instincts told me, I wasn’t ready for a house. Now that I have paid off my loans and still have minimal credit debt to keep my credit up, I feel a bit more comfortable about looking into buying a house.
Awesome! Great to hear. Good luck with your purchase!
Breigh In Wonderland How old are you? Smart choice!
There isn't anything wrong with renting.renting tell you how capable on paying and teach you to be a responsible person before planning the next step.people shouldn't buy if they can't pay when thier renting.its like fast in and fast out.
Sounds like something someone justifying throwing away money would say.
Pia Tukia you are exactly right
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
@@martingiavarini I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
@@bob.weaver72 Personally, I can connect to that. When I began working with “Catherine Morrison Evans’’ a fiduciary financial counsellor, my advantages were certain. In these circumstances, I would always advise getting professional help so they can steer you through choppy markets and just give you indicators and strategies for knowing when to enter and exit the market.
@@martingiavarini I am on her site doing my due diligence. She seems proficient. I wrote her an email and scheduled a phone call. Thanks for sharing
They say "winter is coming," but after you buy a house, "repairs are coming" 😂😂 That is a good one! 😂
Lol
That line was rich, had me rolling with laughter
My checklist.
I will not get murdered in that neighborhood.
Roof doesn't leak.
Wall (exist)
Backyard with a fence around it.
2 car garage.
Usable kitchen.
Everything else can be fixed/upgraded.
Electrical and plumping.
Good, now keep 75% of your list :P
😂😂
75%....looks like I'm gonna die
Looks like I'm getting deported..
I'm so blessed to have the VA loan. I'm in the process of a new construction home. Even got the MCC program. 0 closing cost, 0 down, 3.9% interest.
God bless you and your family and your service
VA loan does not cover closing costs but you will have great rates with no money down required.
Father I’m army veteran please help me out on my first house buying @2486316252
@@atulsorthiya4909 they are real helpful and will walk you through the pre approval process
Conrad Weiden thanks
I agree about not falling in love with the house. View it as a business deal because that’s what it is. Business is business and personal is personal. Your emotional feeling about a property is personal. Leave it out of the deal
1. Get pre-approved first before looking, know your worth first.
2. House should meet 75% of your criteria, perfect house does not exist. Do slow upgrade with time
3. Listing agent to represent YOU is not a great idea
4. Don't look too much into home ONLINE value (you can never accurately estimate a house without stepping inside it, people might have updated it)
5. Don't expect your house to increase in value (it might or may fall in value depending on the market). House increases your quality of living not anything else.
6. Do not underestimate your expenses (there will be maintenance costs and hidden costs)
7. Don't feel rushed to buy (Don’t put an offer before you are mentally prepared)
8. Don't fall in love with the house (act rationally). Houses will be sold and new ones will come to the market.
9. Don't assume renting is throwing money away. Renting is preferred if you will be leaving there only for a few years.
+1.5 speed has entered the chat room. So much better.
I swear, same
2 times the speed is the only way to watch
Thank you!!
thanks, dude you made the video more bearable lol
The high strung salesman tone seems to make things more stressful rather than less stressful.
Makes me feel like I should know this information ☹😫
Mel MMA but we should if we’re looking to buy.
First time owner(still looking) and this is a great video! Also want to add that be sure to check HOA Policies BEFORE making an offer or escrow. We dodged a HUGE bullet of a condo with an awful HOA that fines for the most ridiculous things. Not all real estate agents disclose this before or if you don’t ask.
Good call! Thanks for watching!
I really wanted to finish watching this video but all the shouting made me stop. This felt like a Billy Mays TV infomercial. My god.
I watch it at 1.5 speed. It helps.
lol he's being loud and clear and emphatic on what not to do is all (but everyones different)
notafanboy right? My anxiety was so high
Your whining it’s actually more annoying
Turn down the volume it's pretty simple
I fell in love with a house and it broke my heart when there were too many issues. Knob and tube wiring, foundation problems, non permitted structures. Took me a while to get back into a logical mindset and I just had an offer accepted on a house that may not be my “dream home” but works, it’s updated where it matters, cheaper, and has the potential to become my dream home over time.
This video made me feel like I was getting yelled at while I was on time out.
Investors will take away your dream home 90% of the time
👌🏼
Its still happening today.
That's what I killing the housing market
Investors.. The creators of the housing bubbles year in and year out
Great video.... but, can you further clarify rule #9?
When you say, "the fallacy that renting, is throwing money away..." and "... that they're buying a home when they should be renting..."
Because regardless if someone is moving every two years or not, renting is never an investment...
Very true!
So is buying house is not always an investment.
If you're moving every two years there's no reason to pay closing costs and sellers agent fees every two years upwards of 10-15k saved by renting
I would say "what you can afford" take that and reduce it even more so you can put more money into your life!! That said, excellent video... :)
Thank you!
Im in the process now and you make so much sense. I have fell in love with several houses and keep getting crushed by being out bid
A lot of agents simply won't work with another agent, at least in my state. I went to view a property with the seller's agent, and then got myself a buyer's agent. He told me he couldn't work with the seller's agent unless he had permission to do so.
I asked the seller's agent, and he politely turned me down.
I should note that, while both agents were very nice about it, they were both somewhat baffled that I thought that the buyer and seller would have separate agents.
That struck me as odd, since it seems to be very common advice from internet estate agents.
I am now working solely with my buyer's agent and not contacting seller's agents at all.
Looking at houses now, we have 4 items that the house absolutely needs. Anything else, as long as it works and is liveable until we can upgrade, then let it work
Matt has a great point. You definitely don't want to have the listing agent represent you as a buyer. The main purpose of having a buyer’s agent is for their ability to counsel you, protect you, and advise you. If you work with an agent that represents both the buyer and the seller you may get counsel and advice that might not be in your best interest because a listing agent’s loyalty lies with the seller.
Been looking for over a year and everything you said I’ve learned through experiencing things first. Great tips!
Thank you so much for watching!
Oh maaaan we’ve looking for two years ... THANK GOD for our amazing inspector we dodged a huge bullet !!! Renting is easier
I’m glad I found your channel. My husband and I are finally ready to buy our first home, after 11 long painful years of waiting. I am excited but I am also going to be smart about it. Thank you for sharing this information!
Thank you and best of luck with your purchase!
I don't let anyone tell me what I'm "allowed" to buy, telling me i'm not "allowed" to buy something means your competitor just gained a customer that you just lost. The best thing you can do in that situation is tell me I CAN buy it but I need a lot more down, because I'd go work extra hard for something I really want.
wolfrig2000 I respect this comment💯
Had me laughing 😆. “ that list, I hope you wrote it on pencil” . Great video , thank you for taking your time .
Years ago when I was married my wife and I bought our first house that was built just for us in a brand new neighborhood. It was the 2nd house on that street complete with a privacy fence and it was a nightmare from day one.
They gave us low grade carpet but charged us for high carpet thinking we wouldn't see the difference.
The ducts in the AC were too narrow so it was always breaking down. Warranty pays for parts but not labor.
They built houses in back of us on a hill so we had no privacy and drainage ended up in our back yard.
Property tax was outrages.
Will probably never buy a house again.
I'm just a young strub that just doing a little research, thanks for the info it really helps!!
His speech on falling in love with a house is great love advice lol
Erick, if you're a homeowner, you might be interested in taking advantage of electric savings, that 26% tax credit, and increasing your home's re-sale value as soon as possible. Check out Soleeva's tech-advanced panels with the only 30 year warranty in the market. You can email me at aisha@soleeva.com for more info.
I disagree with his very first point, why would you get pre-qualified and take that hit to your credit score (for the inquiry) unless you're absolutely sure you're going to be making offers? I AM a first time home buyer and did this his way, in the end I gave up home shopping because I don't have much of a down payment and decided to wait until the market goes down again. So my credit score took a hit FOR NO REASON! You can go look at houses without being pre-qualified, just because you're looking at houses does not absolutely mean you are going to be making offers. Also, on his note about "being told what you can afford", lenders will qualify you for way more than you can afford (they did with me) so that won't tell you anything! YOU have to figure out what you want to afford for yourself, a lender will not tell you honestly what you can afford. If you don't want to be "house poor" then DO NOT believe a lender when they tell you what you can afford.
Thanks for your comment. Most serious buyers get pre-qualified because they know they will be making an offer on a house in the near future.
If you don't get pre-qualified before you look at houses for sale, just know that you're already behind other purchasers in the process so when the time does come to write an offer, there could be delays.
Keep in mind the amount you'll need for your down payment throughout the process.
Best of luck on your purchase in the future!
I allowed a lender access to my scores when I was not ready to buy. My scores dropped by 2 points. I learnt my lesson .no more hard enquiry until I m definitely ready to buy. In the meantime,I m "window shopping" for a home! Just feeding my eyes.. online
you can recover those points fairly quickly, and I started looking at houses without a pre-approval, I had NO IDEA what I was doing. Its way better when you contact a lender first and now at least know what you can afford or even make projections of what you will able to afford in about a year. Not to mention that lenders like Quicken Loans will support you through the process of getting your finances in order and raising your credit score. I'm not kidding they took me from 420 to my current 728. God bless them, they for sure earned that extra 1% they charge compared to other companies.
2 points?! That is it?!!! If that is the difference between making a sale or not, you probably aren't ready to buy.
Also when a Realtor list a home they are making an agreement with the seller that they will only bring qualified buyers to view the home.
Thank you for this! My mom suggested skipping a lender and buyers representative to save money. I now see that that makes no sense.
Definitely! Thanks for watching 🙌
Buying a home is quite the process! Its good to understand some of the common mistakes especially going thru this process right now!
Thank you for watching!
I'm on Zillow now watching this, and it broke my spirit lol
Didn't mean to crush your spirit! Good deals are out there!
Right😭😂 same here my man same here 🤦♂️🤦♂️
😆😆😅😅🤣seriously !!!
In the process of house hunting, you just leveled out my approach to things. Taking a step back and not putting the cart in front of the horse. Thank you !!!
Thanks for watching and good luck with your search!
I am about to purchase my first home and your points are really insightful. Thank you! You're the mentor that I need!
Did you buy your house.
@@joyride20001 I did. Been living on it for almost 2 yrs now. :)
I've moved around every 2 years on the dot. and made 50,000$-100,000$ every time.
Haley, if you're a homeowner, you might be interested in taking advantage of electric savings, that 26% tax credit, and increasing your home's re-sale value as soon as possible. Check out Soleeva's tech-advanced panels with the only 30 year warranty in the market. You can email me at aisha@soleeva.com for more info.
Exactly what I wanna do increase not decrease in value
Congrats!
I really needed this! Thank you!
My god - thank you!!! I have been trying to find agents with integrity to do a quick break down before buying and all they want to do is call and get me going before we are ready.
exactly
- you saved my entire life with advice number 9!!!! wow, know my why !!!!
Thank you for watching! Always know your why
I found my unicorn after the fourth house viewing :)
Nice!
Renting is absolutely throwing away money, if you're young and moving around every 2 years you don't really have a choice.
I don't know one wealthy person "retirees not included" that doesn't own at least one property.
Let just say you spent 60K to rent an apartment for a few years, at the end of that time period there is absolutely no ROI.
To put that in perspective you could have bought a small 2 bedroom condo in ok condition, replaced a little flooring, painted, and made some cosmetic improvements to the kitchen and bathroom and made a healthy little profit while having a place to live for a few years. But please rent one of my properties by all means, I would love to take the wife and kids to the Bahamas using your money. Oh and go to Sears and price some stainless steal appliances, realtors sell this like they're solid gold, but they're only a few grand in reality and add a ton of value for no reason other than appearance.
+Galen Hackney agree completely that to build long-term wealth you should absolutely invest in real estate.
It's not that simple. It's not throwing money away if you live somewhere where rent is cheaper than the money you'd "throw away" to property taxes, HOA fees, general house maintenance, closing costs, not to mention your personal time ensuring your property is in good condition, potentially longer commute times, etc. The math and logistics don't always work out. Also, the money invested in the market could potentially give you better returns in the long run than the increasing value of your home (with much less work involved maintaining your portfolio than a physical asset).
Lol! In CT the cheapest you are going to find is 85-90k and up for a 1 br, and those are usually in crap locations. Condos easily go for 150-300k around here. No way I could afford that when I was starting out. Year number 11 teaching and I just got my Master's and paid off my student loans. Not everyone lives in your Cinderella fairy-tale.
I think it depends on your lifestyle you can't flat out says its a waste
Not necessarily. Sometimes renting allows you to put cash in other investments, plus frees up your time. If I don’t worry about fixing plumbing I can worry about my other job.
I'm at a point in my life where I am CONSTANTLY having to defend my choice to rent. In fact, I clicked on this video because I was ready to break-down and buy so I can feel like my life is on track. But I'm moving to a brand new city across the country I have no idea if I'll like, I've never stayed in one place more than 5 years in my adult life, I'm moving to a seller's market with record high home prices, and I don't have any kids. Even knowing all that, I still can't shake the feeling that I should own my own home by now.
Rent if you need to
Matt Leighton Just watched your video on hidden costs. My friends and family can go pound sand. That's ridiculous right now. I'll circle back to your channel when I'm ready to buy. Thanks for the tips!
Buy it and rent it later
So many great solid points, that some of them even made me laugh. I also love the yelling, Matt. It shows confidence and knowledge. My husband and I would love a realtor like you!
Thanks Sonja! I appreciate the kind words. Best of luck with your home search!
Thank you for walking down the steps with me. This will be the first of many videos I will be watching in terms of home buying. We only have a limited time before we have to move. I wish we can take our time, but we can't. This summer is going to be very stressful for me and I'm going to have to exercise all the energy I can to help us find something whether it is buying or renting...These tips helped though. Thank you.
My pleasure! Thanks for watching!
You sound like Jesse pinkman from breaking bad
Biaaatch
OMG! He does! 😆
Yessss🤣🤣🤣🤣🤣
Fallacies
I was looking for this comment :-D
Just because you didn’t get pre qualified does not mean you lose. I’ve gotten a lot of information under the pretense I was buying a home. Many realtors have a lot of insight into tips about buying a home and that alone is worth the trip regardless of not having a pre approval letter
Omg everything he’s said is so true... we started very scared and took our time, but now we are agressive and on our way to buy and close contract!
Congrats! And thanks for watching!
Buying a new home is a huge milestone, but it can also be a daunting task for first-time home buyers! Always talk to a professionals to be guided in homebuying.
You're obviously very knowledgeable on the topic, I wish you many sales! Thanks for all of the advice and help.
+Christopher Labbe thank you sir! I appreciate you watching!
Thank you very much Matt...... this video cleared out a lot of my misconceptions of buying a house.
Thank you Matt for being straight up and honest about the whole deal. We should have people like you and with the same mentality as you who know the job well and will not lead people in a wrong direction in the real estate market. Good job and best of luck to you.
Thank you! Much appreciated!
It took my wife and I 3 1/2 years to find our home and so thankful to have our home. Walked through hundreds of homes and including online. Went through 8 realtiors because they all wanted us to buy the first home we walked into so I kicked them to the curb. Ended up buying our beautiful home at a auction without a lazy realtior. Our home has everything we have been looking for with miner up dates. Trying to Keeping up with the Joneses is a ticking time bomb for anyone..
Congratulations on finding your home!
Wow, sorry to hear that it took you 3.5 years and you went through 8 agents 😬. If an agent is pressuring you to buy the first home you see, definitely get a new agent.
Sounds like it worked out in the end. Sorry again about the lazy real estate agents. Hopefully they get better or go out of business.
Thank you, can't rush a investment and we are very picky, the homes just didn't feel home when we walked through them. Buying a home is like russian roulette and gotta learn to walk away when the house doesn't favor your way and thats what we did for 3 1/2 years. We have lots of patience
Completely agree!
I’m so ready to buy a house next year, but I want to get all the information first.
Consider myself lucky. Got the first home we fell in love with. Best purchase of my life.
Congrats! That's awesome to hear!
“How can you know the value of your house unless you STEP INSIDE IT” laughs in real property mass appraisal regression analysis
This is the realist video I have ever watched. Thank you!
I told my lender about the unicorn 🦄 🤦🏻♂️
Thank you for this video, brother! Much appreciated.
Hey... This sounds like a list to make my realtors job really really easy..........
It is lol
hey matt! I Just want to say thank you to u!!!!! really really appreciate u!!!!!!! I just won my offer! but the most part because of u. I spend days to watch a lot of your video for the new buyer, IT help me a lot, give me so many ideas, and show me how everything steps by step. even some small things like send attached letters with your offer stuff. I never hear from anyone else before. and IT worked perfectly.
I don't have any more else to say, thank you again! matt! you are the best!
whoever watched this channel, you are so lucky lol
Great to hear! Thank you so much for watching and congratulations on winning your offer!
Thing is, the Zestimate is a lot more accurate on cheaper properties. It's pretty close to the comps that have sold in our neighborhood recently (110k - 180k).
My big mistake was buying a home through Countrywide bank many years ago.
It is good advice to know your bank like you know your home.
How about buying a house (first time) and renting out the spare room to a friend? Anything i should worry about or do you think it is a good way to help out with the mortgage?
It's a good way to help out with the mortgage. Just be sure that your friend knows that this is business and that rent is expected in full every month
I am thinking of doing the same thing! I was worried if that would be a good plan or not.
1. check
2. Ya, thats why we are working on buying a multi-family home, its easier to look at numbers, then I can just see if cashflow is there.
3. We are looking currently at a FSBO.
4. Ya seriously, zestimates are useless
5.ya, thats why we want to buy and hold and become landlords, and we hope over a long-term like over 10 years it will go up, we are looking at a 203k loan to put a ton of value in.
6. We have saved up a pretty solid amount, we could put down almost 15% but we are just putting down 3.5% so we can have capital on hand.
7. we've been looking for a few months now that our jobs have changed, we are ready to come in over asking on some places.
8. We are taking notes from bigger pockets brandon turner, he says to try looking at numbers more than anything, its been emotional, ...HOW CAN WE TRAIN OURSELVES TO NOT BE EMOTIONAL?
9. We have saved a solid amount and we want the money to work for us rather than spending all our time working for money.... does that seem like a good reason?
Thank you so much I will be patient I'm just getting information for when that time comes I would be more knowledgeable. However I am building towards it and praying it falls on God's time and will. I'm still young.
Interesting enough we are closing on our First Home soon. Didn't make either one of the mistakes listed, which makes me smile. Great video. Thank you.
Congrats on your first purchase! Thank you for watching!
Is buying a condo for my first home a good choice if single family homes are out of my budget because im tierd of renting?
Yes
My scenario, exactly. Thanks for asking the question. And thanks to Matt, for answering.
I was thinking the same thing. I'm looking into buying a co-op. I am a first time buyer and single so I hope this is the right move. Two of my closest friends work within the industry. One works at a mortgage bank and the other is a real estate agent. The best of both worlds.
STOP YELLING @ ME HOME INSPECTION DAD !!! GREAT VIDEO 🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥
"Myself...Myself...I'm pointing at myself." 😂😂
AWWW… YOUR AWESOME SUPER REFRESHING YOUR HONESTY IS RARE…THANK YOU!!
how bout adding the cost to furnish the home a lot of people never think about the cost of furnishing a home before they buy!
Exactly. I made sure to have everything from W&D, stove, frig, curtains, rugs, furniture because that can be extremely expensive once you have a mortgage.
I'm glad you touched on zillow. Being from the north looking to buy a house down south and being disabled and not be able to get around much I'm trying to find something I like and buy without going first and I know that sounds crazy. But as long as you get the house inspected and have a buying agent could you give me any tips going forward if that's the only option I have instead of physically going there and looking
Matt Leighton I have to say, your video is awesome. You explained everything so well and everything you said, made sense to me. I've been told a million things by a million different people and have been very confused. You cleared that up for me and put this process into perspective. Thanks for making everything make so much sense.
Very good video!
Been looking for 3 years... Looking for my unicorn... 😂😂
It could be out there!
ness35tc 3 years &8 months later , Did you find your unicorn 🦄?
Lmfao😂😂😂👍
Same here ... and I’d rather rent than buy... property taxes in jersey are astronomical and the home is never yours after you’re done paying it off
That was very good. Thank you for the info. I am currently being there for support for my young adult son who is purchasing his first home. It can be frustrating but so exciting at the same time. I feel like we are getting closer to him purchasing a house of his liking.
I’m still struggling to see how renting is NOT throwing money away. Can someone clarify his thought process on that?
Freedom mostly. From my experience, it seems like many people are rushing to buy a house because their friend bought a house or because their parents told them it was a smart investment. In reality, they end up selling the property a year or two later when they realize the property is too small, or in a neighborhood they don't like, or they took a new job...
Sure, if you rent for 30 years in the same area and there are similar properties for sale, go ahead and buy.
What I'm getting at is that renting is NOT a waste of money depending on the alternative.
I'm a salesperson. I hope you buy. And I hope you buy for the right reasons. Also know that just because you're renting does not mean you're throwing money away.
It depends on WHY you are renting, and if you are able to buy a home. If you can't financially handle a mortgage (or cannot get approved for one), then renting is best. If you have kids, or don't want to be beholden to the whims of a landlord, then buying is best. It's throwing money away if you are doing it for the wrong reason.
I scrolled and didn’t see it so...
1) Not being pre qualified for a loan before going out and seeing houses.
2) Looking for a “unicorn” , your house should meet 75% of your criteria
3) Using the listing agent to represent you (they aren’t your friend)
4) Looking too much into a home’s online value
5) Expecting the value of your house to increase
6) Underestimating your expenses. Budget 1% of the purchase price for yearly maintenance
7) Feeling rushed. Don’t let someone force you to put in an offer before you’re ready. But also don’t drag your feet.
8) Falling in love with a house. You may end up overpaying.
9) Thinking renting is throwing money away. Think about why you want to purchase a house.
THANK YOU I NEEDED THIS, TOUGH REAL ESTATE LOVE!
💯 Love your video, keep up the good work!
but I mean renting is throwing money away lol
take a college graduate in their first job--stay with mom and dad for two years to save up a fat down payment on a home... don't "get out" of your parents' rules to go waste an absurd amount of money on rent. you're talking about a good life vs an okay life.
Alex DiCenzo i definitely made this mistake . I was rushing to move out, I did for two years, meanwhile I could have paid my student loans
I just finished college and got a good job. I’m living with my mom and dad. Looking to put a fat down payment on a house by the end of next year. No shame.
Exactly! No shame in living with the parents for a little bit!
Love the insights! Avoiding emotional attachments is key. It’s so easy to fall in love with a home but keeping a level head is crucial. I bet realtors could use something like ReelSane to whip up video guides on these topics without the stress of being on camera!
yeah you’re right about renting. hmm..I would like to move every 4 years, probably due to a promotion or job transfer. Maybe renting is the way to go for me.
GREAT CLIP! Are construction homes non - negotiable? and what is a good strategy to negotiate ? thanks for your help.
I do not need to be told, I know how much. once you get the loan, you have 15 days, perfect recipie to get something out of fear
The way you explained yourself and taught made me laugh, but asside from that, good info!
Is it weird I’m watching this at 15?
No that's smart thinking, i was doing the same thing when I was 16 way back then. Keep going.
Not at all, I am 14 now, where I live real estate is super cheap. And being inside all the time gives me so much time to plan for the future, which is never a bad thing.
Watched this after going into escrow and I did everything he said thankfully because he is 100% right!
Thanks for the truth, in trying to save my sibling from a mistske
I'm glad you are checking for them.
12:45 Now is not the time to fall in love. I am still following that advice today and it has nothing to do with home buying. Though, I will also remember this advice for when buy my first home.
Let's be real, all agents' best interest is themself. They don't care about the buyer or the seller.
No there is only so far they are allowed to go. Real estate agents are expected to follow all laws and act fairly in their business practices. When the house goes through escrow it's protecting your interests and the sellers. It may not be allowed to go through escrow with broken laws. The title company may say hey what's up? You get title insurance. It comes with the escrow account. you can sue if a real agent breaks laws but if you don't know crooked real estate agents will try all of the time. Title insurance is supposed to protect you from some decietful practices but only some.
no, if you have a realtor like that feel free to find yourself another realtor.
We need to get rid of our truck and trade it in for a car, but we are planning to buy our first home in February, my husband makes over $50k a year and we only have his income. could this effect us getting approved for a house?
Hello Erica, the short answer to your question is yes new debts can potentially affect your debt to income ratio which will also affect your mortgage terms and ability to get financed!
WHOA! A lender can't tell you what you can afford. That is absolutely horrible advice. That kind of thinking is why the market crashed back in 2008. At best, a lender can tell you what you *can't* afford. Just because you can get a loan for something doesn't mean you can afford it. Only you can decide what you can afford. Most people spend way too much on houses. If you can't afford to take 6 months off of work and still pay your mortgage, then you can't afford to buy that house.
Agreed!
It is estimated price that is based on different property value in the area...it serve as a comparison measure...they also include record of previous transaction alongside the current set price ...