“I thought this was supposed to be a BUYERS market?!”
Is there any way to not completely lose your mind while trying to buy a home? Probably not.
Buying a home is an incredibly emotional and taxing experience as your emotions ride a roller coaster of expectations.
For most, the home buying process seems like you’re trying to navigate through a foreign land, at midnight, with a blindfold on.
So, how do you find peace when the biggest purchase of your life hangs in the balance?
Ok, here’s the disclaimer…..saying all of this is the easy part. I’m going to offer some words of comfort here and give you a little hug, tell you it’s all going to be ok, but really – is that going to help? Yeah, until you finish the article and let 30 seconds pass….then it’s back to reality and crazy time again.
Maybe something you read here will put you at ease just a little bit. Maybe knowing that it’s not just you that feels like this, maybe that will help?
I don’t know if this will make you feel any better or not, but I have personally witnessed seasoned real estate professionals straight out forget everything they know about their chosen profession while buying their own home. I’m serious, temporary amnesia kicks in and it’s total chaos. Maybe it’s the water.
As with all other important events in one’s life – It’s all about having a strong support system.
Here are a few tips I can offer that might keep the doctor away:
1. Hire real estate professionals that are willing to take the time to explain the “process” to you. This is quite different from having them tell you that this is a great time to buy and then proceed to tout all of their accolades and awards……I get it….you got a plaque. When it comes to hiring a real estate professional you want to seek out someone that will educate you about the process, is easily accessible, and makes you feel empowered.
2. Get APPROVED for financing. Once you are completely approved for your financing that’s like making it through boot camp, now you’re ready for the battle.
3. Don’t rely on the “Media” to give you accurate information about the housing markets. You’ve heard the old adage “if it bleeds it leads”? Well, the only thing worse than reporting only the bad news is reporting only good news. What? Let me explain.
The biggest complaint I hear from Real Estate Agents statewide is their frustration at the local media creating inaccurate expectations with home buyers. I don’t know if this is true in your neighborhood, I’ve certainly run across some very good Real Estate reporters and they “tell it like it is”. Real estate agents are your best source for accurate information about your local market. This is what they do every day.
4. Expect the Unexpected. The home buying landscape seems like it’s changing from one month to another right now. There is more volatility and change in this market than I have ever seen. One day it’s the rates, next day it’s the foreclosures, another day it’s short sales……there’s always something!
I’ve talked with many professionals that have been in the business much longer than my 10 years and they express the same confusion. The only reason I bring this up is that even professionals that are in the business of real estate cannot explain or guess what’s going on in the market today.
5. Know what you can control, and what you cannot control. There is only so much you CAN control in this process. You can control your decision to work with a Realtor. You can control your decision to work with a Lender. You can educate yourself about your local market. You can educate yourself about the home buying process. The rest is going to require patience and perseverance.
I’ll wrap this up by saying that the feeling of frustration is primarily the result of unmet expectations.
Managing your expectations is an important part of buying a home, especially in today’s real estate market. If you’ve done your homework (if you are reading this, that’s a good start), hired a good real estate team (Realtor and Lender) that’s about all you have control over. Every market in every community is different. There is no “one answer” here that will address every question you will have.
Yes, this it’s a highly emotional process. Yes, you are going to have some nerves and anxiety during the process. Yes, it’s going to all be worth it once you get your keys and spend your first night in your new home 
Well? Did that help? Do you feel a little better prepared? I hope so. Happy home hunting!
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{ 2 comments… read them below or add one }
I recently had escrow fall through on a home because the appraisal dew by calstrs was significantly under our bid and the local comps in the area. Is this something that other real estate agents are facing with calstrs and calpers since they both use the same company for their appraisal ?
Hi Andrea,
Oh boy – this IS common occurrence that has been extremely discouraging for sellers, buyers and lenders alike. What happened to you is NOT a CalSTRS or CalPERS problem. It is a new rule that was instituted by Fannie Mae. Because CalSTRS is a Fannie Mae loan, it is subject to the rule.
The rule was created to try to stifle appraisal (lender) fraud. Loan officers, brokers, agents, buyers are not allowed to order appraisals because they may try to influence the outcome.
Only the lender that will fund the loan is allowed to order the appraisal, and even then it cannot be ordered by any employee that may financially benefit by the funding of the loan. What is suggested by Fannie Mae is that the lenders use a third party “panel” or “network” of appraisers that are assigned the work on a round robin system.
The outcome has been that the appraisers being assigned the work are not necessarily familiar with the area and many times this is the result…a low appraisal. Since the purpose of the rule is to prevent appraisers from artificially representing the values to be higher than they are, they are tending to err on the side of caution and being very conservative with the values they do bring in.
Sounds overly complicated and a little bit like over kill right? You are not the only one with this experience and this complaint.
CalSTRS and CalPERS are not lenders. They have absolutely nothing to do with the the appraisal or this new rule. It applies to all non-FHA loans. That being said. CalPERS offers an FHA loan program. This program is exempt from this rule.
Here’s another crazy one for you. Recently, in the last 2 weeks, we had an appraisal ordered on a CalSTRS loan (i would bet money it was the same appraisal service that you are talking about) on a purchase for $520,000. The appraisal came in at $650,000! It passed quality control and the buyer is in heaven, needless to say.
I’m really sorry to hear about your experience. Unfortunately, the bad apples in the business are still making the rest of us pay for their misdeeds. I can assure you that this is not a CalSTRS or CalPERS problem but an industry problem. I know that doesn’t make it any better though.
I might recommend that you inquire further about the appraisal policy of the lender that is funding your loan. If you are going directly through Bank of America for a CalSTRS loan they will always use that appraisal service because they own it. I’m sorry to say that your story is a common one with these companies. Not all lenders are required to use that appraisal service. We have and do use their company at times and have both great service and results similar to what you describe.
I hope this helps you understand why that happened a little better. Don’t worry about your loan – it has nothing to do with the type of loan you are using, only if it is an FHA or non-FHA loan.