Adapted From Keeping CurrentMatters – May 30, 2024
Buyers face challenges in any market – and today’s is no different. With higher mortgage rates and rising prices, plus the limited supply of RCFE and ARF homes for sale, there’s a lot to consider.
But, there’s one way to avoid getting tripped up – and that’s leaning on a trusted real estate broker for the best possible advice. At RCFE Resource, we have the experience, “know how,” and professionalism to help you avoid some of the most common mistakes care home buyers are making right now.
Putting Off Pre-approval
As part of the care home buying process, a lender will look at your finances to figure out what they’re willing to loan you for your mortgage. This gives you a good idea of what you can borrow so you can really wrap your head around the financial side of things before you start looking at care homes. While house hunting can be a lot more fun than talking about finances, you don’t want to do this out of order. Make sure you get your pre-approval first. As CNET explains:
“If you wait to get preapproved until the last minute, you might be scrambling to contact a lender and miss the opportunity to put a bid on a (care) home.”
Holding Out for Perfection
While you may have a long list of must-haves and nice-to-haves, you need to be realistic about your care home search. Even though your ideal state is you find a care home that checks every box, you may need to be willing to compromise – especially since inventory is still low. Plus, a care home that has everything you want may be too pricey. As Investopedia puts it:
“When you expect to find the perfect care home, you could prolong the buying process by holding out for something better. Or you could end up paying more for a care home just because it meets all your needs.”
Instead, look for something that has most of your must-haves and good bones where you can add anything else you may need down the line.
Buying More House Than You Can Afford
With today’s mortgage rates and home prices, there’s no arguing it’s expensive to buy a care home. And while it may be tempting to stretch your finances a bit further than you’re comfortable with to make sure you get the RCFE or ARF of your dreams, you want to avoid overextending your budget. Make sure you talk to your broker about how changing mortgage rates impact your monthly payment. Bankrate offers this advice:
“Focus on what monthly payment you can afford rather than fixating on the maximum loan amount you qualify for. Just because you can qualify for a $900,000 loan doesn’t mean you can comfortably handle the monthly payments that come with it along with your other financial obligations. Every borrower’s case is different, so factor in your whole financial profile when determining how much house you can afford.”
Not Working with a Knowledgeable Real Estate Broker
This last one may be the most important of all. Buying a care home is a process that involves a lot of steps, paperwork, negotiation, and more. There are also licensing and other concerns when purchasing the business. Rather than take all of this on yourself, it’s a good idea to have a pro working with you. The right agent will reduce your stress and help the process go smoothly. As CNET explains:
“Attempting to buy a care home without a real estate agent makes the process more arduous than it needs to be. A real estate agent can give you professional guidance, market expertise and support, which will save you time, money and stress. They can also increase your chances of finding the right care home so you don’t have to spend hours scouring the internet for listings.”
Bottom Line
Mistakes can cost you time, frustration, and money. If you want to buy a care home in today’s market, connect with RCFE Resource so you have a pro on your side who can help you avoid these missteps.
THINKING OF BUYING OR SELLING?
Let the RCFE Resource team of professionals bring proven expertise to help you get the highest price for your Assisted Living or Health Care properties. We are pleased to offer a complimentary, no obligation valuation of your home and business. Please call today for your FREE consultation.
Michelle (949) 397-4506 | michelle@RCFEresource.com
Melvyn (949) 500-3630 | melvyn@RCFEresource.com
