Why Setting a Realistic Budget Is Important

If you’re shopping for a home, it’s important to leave yourself a buffer of cash in your max budget. The market is competitive!

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When you’re in the market to buy a home, setting a realistic budget is very important.

Let’s say you set a budget of $225,000 and are looking for a home. If you look at homes that are priced for $225,000, you may find a home that has multiple offers. When there are multiple offers on a home that’s already priced at your max budget, you’ve got no chance. You don’t have the buying power to go any higher.

In this market, you need a bit of wiggle room.

We recommend giving yourself some buffer room. If your max budget is $225,000, cut off the home prices you are looking at to homes priced $220,000 and below. If you’re in a multiple offer situation, extra cash is always beneficial. When homes are selling in our market, they are selling for $5,000 to $10,000 over asking price.

If you find the home you love, you should go after it and not wait for someone else to get their hands on it. Give yourself that little buffer so you can feel confident when competing against multiple offers.

If you have any questions for us, don’t hesitate to reach out. We look forward to hearing from you.

Why Is Selling Without an Agent a Bad Idea?

Many sellers think they will have no problem selling a house on their own. Most of those sellers end up being wrong.

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When you are getting ready to put your St. Croix home on the market for sale, hiring an agent is essential. Studies have shown that sellers who sell For Sale By Owner (or FSBO) net 16% less than sellers who hire an agent.

It has also been proven that 80% of FSBO sellers end up listing with a Realtor within three weeks of listing their property on the market. These sellers realize once they start trying to market their home that they are in over their head, and there is a lot more work involved than they thought.

Buyers are looking for FSBOs trying to get a bargain. They know you’re not paying a commission and will take that off of their offer. The buyers lurking around FSBO homes are not always qualified buyers, either.

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FSBOs are vulnerable to bargain hunters.

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Think about it like this - If you buy a brand new watch at a jewelry store with a beautiful box and and two days later you see the exact same watch in the same box at a garage sale with a sales receipt, would you be willing to pay the same amount at the garage sale that you just paid at the jewelry store? No way. Your home is first-class too, so why would you sell it in a second-class manner?

If you have any questions for us or are thinking about listing your St. Croix home, give us a call or send us an email. We look forward to hearing from you.