The US president sought estimates from contractors worldwide to paint the White House. The Indian contractor estimated three million dollars. The European contractor said the cost would be seven million dollars. The third contractor, from China, estimated it to be ten million dollars.
The president asked the Indian contractor, “How did you come up with three million dollars?” The contractor replied, “One million for paint, one million for labor, and one million for profit.” The president asked the European contractor about his seven million estimate. He replied, “Three million in paint, two million in labor, two million in profit.
The president asked the Chinese contractor about his estimated ten million proposal. He replied, “Four million for you, three million for me, and the remaining three million will be given to the Indian crew to do the job. The Chinese contractor got the contract.
The unfortunate lesson for some is, “Say what you need to say to make it work.”
According to a recent report by Clever Real Estate, a staggering 82% of recent homebuyers expressed regrets about their purchases despite overcoming the challenge of limited housing inventory. This report has gone viral on social media, and major news outlets have used stats from it for many of their housing articles over the past few days.
An overwhelming 85% of buyers reported making compromises on their home purchases. Notably, while 48% sought affordable homes, 37% ended up purchasing properties that exceeded their planned budget. Among this group, about one in four agreed to buy their home “as is.”
Financial difficulties were a common theme, with nearly one-third of buyers finding the homebuying process more challenging than anticipated due to high interest rates and unexpected purchase prices. Additionally, 47% of buyers admitted feeling financially overextended post-purchase, with over 40% struggling to make timely mortgage payments or taking on new debt to maintain their lifestyle.
This 2024 Edition American Home Buyer Report from Clever really paints a gloomy picture of the housing market. The report is full of negative numbers and depicts consumers who deeply regret almost every aspect of their home purchase.
As I was delving into the data, I noticed an interesting sentence: “To learn more about today’s home buyers, we surveyed 920 Americans who have recently purchased a home or plan to buy in the next year.” The numbers revealed that of the 920 people surveyed, only 420 people actually bought a home in 2023 or 2024. The additional 500 people planned to do so in 2024 or 2025.
To achieve their click-bait statistics and attention-grabbing headlines, they relied on a few hundred disgruntled home buyers to make major commentary about the current state of the real estate market. It’s really shameful and misleading if you ask me.
I speak to many homeowners who have bought homes over the past year or two, and the majority of the feedback that I receive is highly favorable. While many lament about not buying sooner to obtain a lower rate and reduced purchase price, most are thrilled that they bought when they did.
It’s a shame that certain media outlets must resort to exaggerated stats to attract attention and that many don’t read the fine print to qualify these findings. Despite the questionable figures, strategic planning and professional assistance can help buyers mitigate financial stress and make more informed decisions.
Would You Rather: If you had to pick one, which would you choose? Start a business with a partner or take out a loan against the whole value of your home to avoid taking on a partner? Please email or message me to let me know your choice! Please let me know if you have a good “Would you rather” question, and we will highlight your submission.
Shmuel Shayowitz (NMLS#19871) is President and Chief Lending Officer at Approved Funding, a privately held local mortgage banker and direct lender. Approved Funding is a mortgage company offering competitive interest rates as well as specialty niche programs on all types of Residential and Commercial properties. Shmuel has over 20 years of industry experience, including licenses and certifications as a certified mortgage underwriter, residential review appraiser, licensed real estate agent, and direct FHA specialized underwriter. He can be reached via email at Shmuel@approvedfunding.com.
Please Complete This Form To Get In Touch With Shmuel
