Here's some advice that I always give to my clients. It usually turns out to be true.
"Your Third House is Your Dream House"
Your 1st House is the one that helps you stop renting. Your 1st House transitions you into being a homeowner. Your 1st House helps you start building equity. Your 1st House gets you into the market.
Your 2nd House is for when you're ready to move up. You buy your 2nd House when your family is getting larger, you've got a job promotion, etc. You need more room and can afford more house -- that's your 2nd House.
Your 3rd House is Your Dream House. You've arrived. This is the house you've always wanted. You're gonna stay here for a while. Maybe forever.
Some of my clients skip the 1st House and go right to the 2nd House.
I joke around with first time buyers and tell them that one day while I'm driving around the million dollar homes in McLean, I'm going to call them and say "Hey, I found your 3rd House. Now we just have to wait 15 years until you're ready to buy it."
Are you ready to buy your 1st, 2nd, or 3rd House? I'll be happy to help in any case.
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Smart way of looking at it. I have added a few more to my personal mix. I had one or two make some money homes in there.
Hi Brian,
I love the concept of the third house being the dream house.
Giving this concept a slightly different take, I always make a point to tell my buyers that if a house gets sold out from underneath them that it always seems to mean that "their" house is still waiting for them, and we need to keep looking until we find it.
This piece of advice came in really handy recently with one of my first-time buyers, who saw the house of her dreams, plotted out where she would put the Christmas tree, and then before we even had a chance to write up the offer, the house went under contract.
She was beyond bummed out, and said she felt like she'd been ditched by the "cute guy" and had to settle for a blind date.
So....just imagine how happy she was when 2 days later we found her a charming cottage....new roof, new paint, GREAT backyard, and--get this--a white picket fence!
Now she truly DOES have the house of her dreams....and the perfect place picked out for her Christmas tree!
Have a great day!
Coleen :)
Hi Brian, great way of thinking of homes for the buyer. Might be a problem if it's the 4th, 5th, etc. But we can deal with that!
The third house concept is the historical perception.
I'll be so glad when folks can again sell the second home and move up to the third house, my market.
Hey - that's exactly where I'm at! My husband and I are selling our second home and building the one we've always wanted (within a budget, of course). Still around 2500 sq ft, but we're planning every part of the home and are very excited. But our first home was wonderful too (at 1100 sq ft) - just the right size for a couple starting out.
Seems like I used to help the majority buy their 2nd home. Now my business today, I am helping the majority of my clients buy their first house. More money with the 2nd home. As long as I have transactions, I'm happy.
Good concept. .for me, the third house was my ex-wife's dream house. . .
Brian,
While it is often true, I'm dealing with 1sts and 4ths- the latter being those who want the luxury of 3rd and size of 1st. Empty nesters are keeping me going at the moment.
Brian I absolutely agree, that's how I see my own personal home.
Brian, I'm not looking forward to my last house...where I'll really be forever :) Saw your segment on Fox Business Channel last week. You hit it out of the park. Rich
Brian - A thoughtful analogy. At this time in the marketplace I am back to the First House homebuyers , but that means plenty of business in three to five years when they are ready to upgrade to the Second House
Graat post! As we aim to get people in affordable homes, we also need to help some buyers realize that the first home may not be their dream home. Maybe some of our current mortgage mess is due to peopel wanting to skip the steps of home ownership.
Great post! Love the concept. For someone who has relocated several times I am not sure what number will be my "dream" home...the penthouse in NYC or the penthouse at the Ocean when we retire!
I will definately share this with the first timers I am helping right now.
I like this view! I had never thought of it in this manner. I sell a lot of second/vacation homes...I guess that falls into the third group too! :o)
I tell first time buyers it is all about the money. Don't worry so much about having it all, it is best to position yourself for greatest ROI, so that the second house is a real move up. In other words, don't get stuck in first gear because you will never survive on the housing highway.
Great view point. I had a first time buyer who was wanting her 3rd house right from the beginning and skipping 1 and 2.
Bettina
All focus seems to be on the first house market at this time. I'm hoping the rest of the market comes into play in the near future.
Hi Brian, I love this post. It is great. Although in Manhattan New York market place, it may take the buyers a while to get to their 'dream apartment', because depending on how big is their dream, that third apartment may worth over trillion dollars!
Brian, one of the couples I'm working with is working on Dream House. I helped them buy numbers 1 and 2! It's really cool when you have a history with your clients.
Brian this is the best way I've seen this presented .....ever. I love it. And will share with my agents this morning. It's pefect for our topic this morning.
Thanks!
Hi Brian,
Great idea. How about adding after the dream house, that they now may want a vacation to add to the bigger dream?
My grandma (bless her soul) used to always tell me 3 moves is as good as a fire. HUH??? I never knew what she meant till I bought my 3rd house. Everything I owned in my 1st house is pretty much gone. Yep, 3 moves is as good as a fire!! lol~
Great post and thanks for helping me to remember grandma and all her great wisdom!
Brian: That is a great way to look at first time home buyers, if you stay in touch with them, each one of them has the potential for two more sales. Thanks for the insight.
I like this approach, and I think 1st time buyers will like it as well.
Like so many others here, this is true for my family as well. I had never thought about it, but you did! Great job!! :)
I love this way of looking at it. I have first time homebuyers who get so depressed by the lack of affordable properties in my market that meet their expectations. Everyone has a dream house, it just takes time to get there!
In this market a lot of buyers are able to skip step one and two and go straight to the dream house!
I really like this message, and one that should be shared with as many Realtors as possible!
Too many folks were skipping steps with the easy loans of markets past, and have now lost them. As Realtors, we need to focus not only on the wants of our clients, but most importantly, their needs! There can be a large difference between the two.
Thank you for sharing,
- Harrison Painter
Brian - I hadn't ever thought of it in this way before, but this is highly accurate. Great advice!
Hello Brian,
Great post & point of view! Thank you for sharing!
Rita
Love the post today Brian....I guess it's true for some.
Patricia Aulson/Portsmouth NH Real Estate
Good post!
I am with Fernando - except it is my ex-husband. lol. My dream home was number 4 but probably because I was so much younger than 1st time buyers are now - I bought my first home at 22.
I'm on my third 2nd house then. But when the kids finish college I'm going to be in the market for that dream.
Hi Brian...After you find them their third house and they have had time to enjoy it they might be ready for their "Other Home", the one at the lake where they can come to relax.
Good feature.
Kate
Very good post - & comments! I think many of us have had those first time buyers who really struggle with the concept of not being able to afford their dream house right away & this helps put it in a great perspective for them. I always suggest they ask their parents how many homes did they own before getting to the one the "kids" know now & are wanting to equal or better - almost everyone starts modestly, but the great thing about owning real estate is that you CAN make those steps forward to your dream.
Brian,
Good speak, to the point.
Good post. You said we could 're-blog' so how about re-blah? I'm going to use this when talking with first time home buyers! "Remember what I tell you now, so when you're at the 3rd property, you'll be prepared."
What is with the Panama thing? The next Miami?!?
* I bought my first home at 19, sorry Jo. It was a VA with my then-husband, who, coincidentally, was from . . . Panama! :-)
Very thought provoking. I too am helping a lot of folks with their 1st house. Great news for the future, that they have another 2 to go. I like to think that number 3 is the dream home. I love the one I'm in, but gotta have something to look forward to, right?
This is a really great post! I love the thought process. Should help people try to buy within their means!
Great post! Thanks for sharing.
Brian - I really like the no nonsense approach to explaining the "Long Haul" to new buyers, Think I'll borrow your system!
This is right! How about the buyers that want the dream house with the first house.
Hmmm... I'm in my 2nd house for 6 years now. Dream home is next!
Hey Brian,
I wish we'd had you as our Realtor to let us in on that little secret when we bought our first house... We stayed in it 10 years! Now we're finally moving into house #2. The best to you in your business.
Bernice Dubon in Calgary, Alberta with Royal Lepage Solutions
www.yourhomeincalgary.com
Hi Brian -- Great post, and it definitely fits for many people. I used to live in NoVa and worked in McLean back in the mid 1980s -- what an expensive zip code these days.
Great post and interesting way of thinking.
Your post is right on the money. Good way of getting a first timer to settle for less.
Hi Brian,
Great list of homes to share with a buyer..in todays market I see a 4th..the empty nesters home. So many are getting rid of their dream home to find a practical solution to meet their housing needs so they still have money for the travel and fun they want!
I think this is a great, simple explanation of the process of moving up in your homes.
I have been in my dream home for 19 years.
You know the rest of the story is #4 Downsizing home and #5 is retirement home.
I am in the downsizing mode right now.
This is great way to understand the life-styles of our clients change as we go through all the life changes.
I'm in my first house because I was a terminal renter all my life. I don't move around much. I would agree that the third house would probably be a dream home.