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When I am watching H.H., and they always list the person's budget,
when they say the budget is that how much the buyer's pre-approved mortgage and down payment will total or is that how much the buyer is going to spend paying all cash?
It's the purchase price they can afford. It doesn't matter if it is all cash, 100% financing, or some combination of both because it is all cash to the seller.
Sometimes I've seen them go into a little detail, ie the Smiths were pre-approved for xxx and have a downpayment of xxx, giving them a budget of xxx, and I've seen shows where they just give a budget numbers. Obviously some people are more willing to share that info than others.
Not that it matters all that much anyways. HH is scripted.
The budget range is gneerally the total amount to be spent on housing -- for the international relo crowd they have had a few families that get thousands of dollars a month to lease a place, quite spectacular in some countries.
Even though many episodes are done "after the fact" or through some scripted set-up the comparisons are generally well done. Of course some markets have seen dramatic declines so when folks are shopping for some condo in Chicago for an episode taped in 2006 and it airs in 2011 the numbers are hugely off. Still, the "look" of most comps is right -- places that are a little newer are either going to be a bit less of a prime location or more money than an unrenovsted place. Same kind of comparisons happen in suburban and rural settings too -- when one place is on a huge chunk of land odds are it not built by the a developer that went for the SS appliance package, if it some farm area the comps may have out buildings/ stables and the deciding factor may come down to just how big a spread someone is willing to "maintain".
I like most episodes, though they spend too much time "recapping" and awfully little of the couple / home buyer really agonizing over the details that is closer to reality from my experience ...
Sometimes I've seen them go into a little detail, ie the Smiths were pre-approved for xxx and have a downpayment of xxx, giving them a budget of xxx...
I've even see them say all that and then go on to say that while they were preapproved for XXX, they really only want to spend YYY. At least there are a few smart people out there. If my wife and I had bought all the house the bank preapproved us for in 2006 we would have been in trouble the last couple of years.
But what I don't understand on the HH's is when the dumb ass Realtor will show the HH's a home above the price range.
If they tell you a price, what would make you think they want to see it if it is above their price range.......what do you theink they do, go to the basement and make more money??
Sometimes they'll show a house over budget because the comps in the neighborhood fall into the buyers price range and the house is overpriced.
Other times.. I don't what they're thinking. I imagine since it's a tv show that there would be a lot of legal stuff to go over before they get permission from the owner to show the house on tv so maybe they just don't have enough houses to show.
Sometimes they'll show a house over budget because the comps in the neighborhood fall into the buyers price range and the house is overpriced.
Other times.. I don't what they're thinking. I imagine since it's a tv show that there would be a lot of legal stuff to go over before they get permission from the owner to show the house on tv so maybe they just don't have enough houses to show.
^ what she said! ALso there can be negotiations to lower a price.
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It can entertaining and informative...
