If are not a real estate professional, you may be surprised to learn how commonly buyers report that they will have no problem financing the property they might want to purchase.
If only. . .
Generally speaking, buyers have a good idea of their credit scores and, of course, their assets. Yet they often inflate their ability to pay for their next home on the basis of a mysterious mental calculation. Interestingly, many buyers also underestimate their purchasing power.
Because of such thinking, I almost always ask buyers to fill out a financial statement such as that provided by the Real Estate Board of New York (REBNY). Only when the form is completed can I feel assured that my clients are searching for property in the correct price range.
That’s where the rubber meets the road.
I am not naïve, and I do understand that some folks may have privacy issues. I also appreciate that the prospect of filling out such a form may feel like an intimidating amount of work, even though it’s little more than a top-of-the-head assessment completed in less than an hour.
But I suspect that the root of most resistance is that few of us relish the prospect of putting on paper the hard numbers that truly reflect our financial reality.
Difficult or not, filling out that financial form is an essential first step in what normally is a pretty long journey on the road to purchasing a new home.
For buyers, the rubber meets the road here
If are not a real estate professional, you may be surprised to learn how commonly buyers report that they will have no problem financing the property they might want to purchase.
If only. . .
Generally speaking, buyers have a good idea of their credit scores and, of course, their assets. Yet they often inflate their ability to pay for their next home on the basis of a mysterious mental calculation. Interestingly, many buyers also underestimate their purchasing power.
Because of such thinking, I almost always ask buyers to fill out a financial statement such as that provided by the Real Estate Board of New York (REBNY). Only when the form is completed can I feel assured that my clients are searching for property in the correct price range.
That’s where the rubber meets the road.
I am not naïve, and I do understand that some folks may have privacy issues. I also appreciate that the prospect of filling out such a form may feel like an intimidating amount of work, even though it’s little more than a top-of-the-head assessment completed in less than an hour.
But I suspect that the root of most resistance is that few of us relish the prospect of putting on paper the hard numbers that truly reflect our financial reality.
Difficult or not, filling out that financial form is an essential first step in what normally is a pretty long journey on the road to purchasing a new home.
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Share This PostMalcolm Carter
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022
M: 347-886-0248
F: 347-438-3201
Malcolm@ServiceYouCanTrust.com
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