Love It Or List It's David Visentin Offers Priceless Real Estate Advice To Homebuyers

Who should a potential homebuyer be listening to during the process? Friends and family with experience might have great tips, but those are generally anecdotal and should be taken with a grain of salt. It's much better to glean information from professionals in the real estate field, whether the ones you know personally or those from your favorite TV shows, because they will give you information that is both objective and current. One fact about "Love It Or List It" star David Visentin is that his real estate advice is typically on the nose for the market realities. In a 2021 Time interview, he spoke about the importance of sticking to the budget despite the pressures that come along. "You have to go into it making the offer as if there are no other offers," he said. "It's really tough for buyers to do this. Because they get emotionally involved in a house. But you really do have to take that out of the equation."

When looking at a home, you can quickly find yourself in a bidding war where multiple people are trying to snag the property you want. This creates a desperation and a scarcity mentality where you think you might not be able to get this opportunity again and you need to do everything possible to secure the sale, but that is an unhealthy approach. Stick to your budget instead and you'll be grateful you did.

Resist the pressure and stick to your budget

Negotiations are a big part of the homebuying process. As a potential buyer, you might decide on a price range in the beginning but then get swept up in the process and want to exceed it because of a home you really like. However, that isn't wise because the initial budget came out of the reality of your financial situation and it's better to make decisions with that in mind. "Do not, no matter what you think, go beyond that max," advises David Visentin.

When an offer matches or exceeds the asking price, it is typically a strategic move to stand out because the potential buyer is in a very desperate place. That's why it's important to maintain a clear head and avoid getting caught up in the games. Instead, focus on what those extra costs will mean for your mortgage payments and stick to the price that's comfortable for you. Those payments, alongside your other bills, will be what you'll be dealing with for years long after the bidding war and after the appeal of the shiny new home has worn off. Another valuable real estate tip comes from HGTV star Genevieve Gorder, which is to keep an open mind when shopping for a home. When you're flexible, it will be easier to believe that the right home is still out there if you can't afford the one you're interested in now.

How to determine your budget

Your budget for a new home goes beyond what your income is and what you want your monthly payments to be. In addition to your down payment, property taxes, PMI, homeowner's insurance, and closing costs should be taken into account when determining how much cash to pay when purchasing a home. Some other things to consider are the costs of turning your new house into a home and any emergencies that might come up. Your income isn't just for your mortgage, so the ideal budget won't allocate most of it towards that. It will allow you to keep a good amount of income so you can take care of other things. Instead of borrowing the maximum amount, even though you're entitled to it, borrow the amount you can comfortably afford.

If you want a home badly but you're about to be priced out of the bidding, there are some ways you can get around it. For instance, you can offer to pay in cash or approach the seller with a preapproval letter. These two moves are very attractive to a seller because they show that you are actually ready to make the purchase and it's basically a sure deal.