Strategies For Making Major Purchases

Welcome to today's episode. I'm excited to share with you a recent experience and a financial story of my own covering the topic of how to navigate a large purchase. So before I jump in and sharing my journey, I want to just define that a large purchase is something that will impact your wealth, right? So this is buying a home. whether it's your first home or a second home, a large remodel, a recreational vehicle. And when I say that I'm talking about those really nice motor homes, maybe paying for your children's college, those types of purchases where it's very impactful in the dollars amount. I don't want to state a dollar because this is going to be different for everyone, but really not coming in here is like your everyday car or, you know, those types of smaller events. So really thinking about a large purchase and not just the purchase of a home. However, that is the story I am going to share. So for the last three months, my husband and I have been navigating this purchase. So as I share my story, I hope you'll understand or get clarity around how you can navigate certain decisions, financial decisions, or certain points, things that happen not rushing, right? It's very normal to want to rush and have things just happen. I did the entire time. But the reason for our purchase was eight years ago our daughter's, our daughter left us to go to college and she didn't come back. And we knew at some point we were going to, you know, move closer to be with her as long as she was staying where she was at. That was our time frame in that we didn't jump so quickly. We didn't know if she would put roots down. She was in a different state about five hours away. So being able to see her was not difficult. Although when it's your only child, It just, I'm sorry, I have to be closer to her. It just is what we wanted to do. So we made sure that her roots will be here, I don't know indefinitely, but for a very long amount of time. And so prior to this purchase, we knew it was coming. We define what it is we wanted. What did we want in the purchase of this new home? I think that's important in defining what the purchase should look like. So we were looking at a rambler basically, or that everything, and when I say everything that the master bedroom and laundry were on the main, that we did not have to navigate steps. Our old home, you had to navigate at least seven steps, if not 14, one way or another. Getting older, that's not easy, and while it's not you know, the problem today, we knew it eventually would be a problem. So why not take that off the list? And so we were looking for a one level. We wanted some property. My husband wanted a shop. I wanted a master bathroom tub really. And then we also wanted a family room, not just a living room, but we wanted the separation. So being able to get property. And, you know, fitting those things, we're looking at slightly older homes. So within those homes, they did living rooms. They didn't do family rooms. We found a beautiful home that really walked into their living room and kitchen, and then you had bedrooms and that was it. So, you know, really exploring that, but again, back to us defining what we wanted. So as we defined, right, we jumped onto the internet. websites like Zillow. And we just started looking what was a possibility. I reached out to my local realtor and, you know, kind of said, Hey, how much can I sell my home for? Now us going into this, we did not have a mortgage on our main home. And that was our desire to be able to kind of step across. And so, So we began our search on the internet. That took us all of February. We had a little medical hiccup that kind of paused us a little bit. And so we didn't get to our physical search until early March. So, okay, we've defined what it is we really desired. We sat with a new Realtor in the different state and we went and did a physical search for two different days. We saw about eight homes. And on our drive home, we shared how disappointed and discouraged we were. It was just eye opening as to Possibilities. Reality. What truly in this market is going on. And if you were like me, you have not explored it, you know, personally, the market for housing is crazy in most of the states. I know it's not like that in all of the states. And looking at the fact of You know, not being able to really, you know, step across. We were like, okay, so what are we going to do? So we were talking about, you know, some of them were okay, but then it was lacking this. It didn't have that. But I liked this, you know, talking through all of those points that we had defined initially in our, you know, list of wants that we wanted the home to have. And so. For the next two weeks after we were home from our physical search, we began looking at just slightly higher homes, okay? So we added on about 100, 000 to 150, 000. My husband's like, I can just get another job. It won't be that much to pay off, you know, so we're kind of just adding to our details and looking at what we can get. And all it did was add a little bit more options to us and. Not necessarily desirable options. I mean, some of them were okay. There were some amazing homes out there. It's interesting. I just want to share when we were selling our home, somebody's like, Oh, I didn't like the layout. And it's like, yeah, but I can't change that. You know? So really looking through many homes to find what it is that, fits for you. So we had upped it a little bit. So again, the, you know, late March we went in and we looked at some homes that were higher price range. Again, nothing stood out to us. So we weren't, but we weren't as discouraged. We knew that we could make something work. So we're looking now at a beginning and an end price range. We're seeing things pop up. They're still going very fairly quick. You know, that's the thing. It's like the housing market I told one realtor at an open house. I went to I says it's about seven to four No, it was about four to fourteen days and he looks at me goes No, it's like it's like seven days to two weeks and I'm like, isn't that what I just said, you know, so Seeing it You know, firsthand and understanding how quickly they were turning. So you knew you had to react. That was another thing that was hard because I don't like to be pressured into purchases, but I like to be knowledgeable with my purchases as well. So as we returned back home, we were able to get our home on the market after the month of March. We had taken all of March to declutter 20 years worth of stuff. Hopefully I'll have a share, a story to share on that in the future. And we got it listed. And then, of course, all of the ideas, the scenarios, the fears, the worries, the possibilities are going on in my head. Well, what if we sell first and we don't, I haven't found a home? And, you know, what if we find a home and, you know, we haven't sold our home? Just going through all of those what ifs and, you know, those aren't great, but I think they can be good. So if you're in a same situation You know, as you're going through this, as you hit this, this moment where your fears and all of the possibilities and the, well, if this happens, then we have to do this. If this happens and we have to do this, it was within that realm that a home that had been on there earlier popped up again. So the reason it came back on the market is because the appraisal didn't meet what they had put in as an offer and they had to get They had to get lending. So again, evidence that homes are selling for more than they're worth, especially in certain areas. It's not a great market to be in. However, I have a home to sell, probably more than it was worth. So in a sense, I felt like, right, I'm in, I'm in an okay place. So as I'm going through these possibilities, as this home pops up and I think, Oh, I'm Okay, well this is a great house. Do I want to put in an offer? Well, can I afford this home without selling my current home? So I'm sorry, I am such a budget proponent because that is where I went. All right, here's all of the things I have. I pulled out the things that I didn't have to have, that I knew I could live without for about three months. I knew it wasn't going to take long to sell my house. And in that moment, I had the clarity that I could actually put in an offer, pay for that home while waiting to sell my other home. Now, I had options to keep up going longer than three months, but I wanted to just reach into what my current liquid funds were that were coming in every month. And so as you're navigating a purchase, really go through those feelings, those thoughts, those possibilities. And I cannot stress enough how much. Helpful. It is to have your budget laid out to know where your money is going to know where you can divert funds from to support another dream, another goal, another desire, and we did this probably 10 years ago where we had and we did this probably 10 A second home fall into our lap that we were responsible to pay the mortgage on, and we did the same thing. So that was a forced. I was able to do it then. So why could I not do it now? So my husband, he, He gets worried when I say that, but he knows that I, I read the numbers and he obviously goes off of the other things. So he just goes for the ride and I tell him, I said, I think we're buying a house today. We put in the offer. We didn't get chosen. We stayed in as a backup offer. And so as we're navigating this, it was just the idea of. Okay, we don't have to sell our home first. You know, it's like understanding where your financial step is, how quickly can you take it knowing that you can handle extra, you know, payment for the time being. But as we were navigating this and navigating the market right now. We decided, number one, that we had some hard stops. We were not going to be a part of the bidding war. We just did not want to. We might pay full price, which is what we did on our first home, very similar market but we were not going to inflate prices. And if I had to wait six months to buy a house, that's the way it would have been. I did not want to contribute to what I truly believe is the problem is these inflation because, and I know there's a lot going on but I wish, you know, housing prices would just come be what they are. And we knew what negotiables we, you know, we made our list of our wants and our desires first, but we learned how we could segue. Okay. So I wanted a master bathroom Bathtub. Out of probably the 15 homes we saw, two of them had a bathtub in the master bath. And ironically, the one we purchased has a bathroom tub. But anyways, knowing that that was not a realistic, right, or a hard line negotiable you, you start to navigate what is going to work or not work. And really making, you know, your list of, you know, I won't do these things, but I can change here, or I can alter here. And the third thing, we did not want to purchase out of desperation. That we would just go the journey, but not in a moment of desperation feel like we had to buy a home. Or feel like we had to take an offer on our house. Desperation, emotion does not belong with money. So if you're somebody who does that try to learn to not be in that moment of desperation. We received, I just have to share this we received after three days on the market on our home, a offer 000 less than our asking price. And if It was a realtor and my understanding, I guess they're the worst, but really if you cannot purchase a home or whatever it is you're purchasing in that price range, do not go looking at it, right? If it's not fathomable, don't go there. Don't step in and send something that is just, it makes you look bad and it's really not wise to send to the people. So, it just really don't, you know, do things out of desperation. It, we could have been like, Oh, well we can sell our home and then we can go buy a home because we have money. We would have lost so much money on that offer. And really we were only three days in. So be realistic with yourself. It is really normal to want to rush a large purchase. Having moved into the home we are in now. So we looked at this home in that first weekend. And it was awful. I know that probably sounds weird as now I'm sitting in it. The carpet had never been updated. It was a 1976, I think it's a 76, I get it wrong all the time home. I really don't believe the carpet had been replaced since the 70s, maybe the 80s. The paint was dark, the linoleum was brown, you know, so thinking back to that day and age, and it was awful. Still had the popcorn ceiling. My daughter had come to look at it with me and I'm like, ugh. But the location, the neighborhood, and I know it has good bones, but I just, it was, and it was a good, I mean, it was a decent price for what they were kind of asking. I just wasn't ready to do all of that work myself. Right? So knowing what you're going to get and give. So. Luckily, they went in, I guess after we heard from neighbors recently, 35 people walked through and said pretty much the same thing, that they went ahead and did it. So, it's been a great purchase. The half acre, arm's length from neighbors, and the funny thing is, is we actually bought in a 55 plus community, but it's not a 55 plus community. It's just funny how things happen and put you in the place that you need to be. So again, as you're navigating a large purchase, the tips, make sure you are clear on what you will negotiate around. What are your hard stops? What won't you give up? And eliminate desperation. The idea that we just want to hurry and get something done, I, yep. I wanted to, I just wanted to have it done, but yet desperation does not lead to the best outcome for anybody. So hopefully me sharing that story with you will help you understand how to navigate a large purchase. Maybe you're looking to relocate, take your time. Especially if you're in a state or states with housing market, that is just crazy, you know, back in the day you could downsize and then put some cash into your pocket that may not be a reality anymore. And I also am planning on doing an episode in probably a month or so about supporting the next generations that are trying to buy a home and having navigated that just through this recent market, I have some ideas on ways we can help, you know, our kids, our Gen Z's particularly, to be able to get into that home now. So I'll share my thoughts in that episode so stay tuned, watch for that in the future. And one last reminder, as I know June is coming to a close, complimentary Financial Foundation intensive sessions, I have 25, unless the spots have filled up, please reach out, be sure to schedule yours, you have until August 31st to complete that session. What does this session support you in? It helps you determine how to become debt free, how to solve your retirement gap, or how to navigate a new financial position, either post divorce or finding yourself as a widow. So Excited, glad you are here. I thank you for listening. Please help me reach more people by being sure to leave a rating and a review on your favorite podcast platform. Your feedback means the world to me and I am so grateful to all of the listeners here today.