Real Buyer Talk 2

This week I spoke to Johannes and Stephanie Knueppel, first time buyers who are diligently pursuing the dream…which sometimes seems like a nightmare. Here’s their perspective:

 

1) You’ve been renting in the area, at what point did the idea of buying something start to look appealing?
We have been renting a one-bedroom apartment in San Mateo for the last 2 years, after moving here from San Francisco. Buying something started to sound like a good investment once we settled into our jobs. Also, at some point in the future we will need additional space to be able to start a family. 
2) What are your feelings about engaging into this particular market? How intimidating is it?
It’s definitely intimidating to hear stories about people trying to buy a house & getting outbid repeatedly. It’s almost intimidating enough to consider waiting. 
3) You have an interest in a house, it needs a lot of work and you discover that it’s going to get multiple offers. Describe the experience when learning that said house gets 18 offers and sells for $150,000 or more over asking?
It was unbelievable and in our opinion unreasonable. I think there is a point at which it makes sense to offer extra to get a house that’s perfect and ready to move into. But paying $150000 and still having to put another chunk of money and a fair amount of time into renovating, is a little crazy. 
4) Do you see all this insanity as a temporary bubble and if it is do you see prices moderating?
 I would hope that this is a temporary bubble, but realistically looking at the Peninsula, I don’t think it is. San Mateo County has so many restrictions to preserve open space and that means there is very little new construction/development, so demand will be higher than supply. 
5) How frustrating/intimidating is the market’s lack of inventory?
The lack of inventory is certainly frustrating. Especially for first time home buyers, it makes you think twice about living in this area. But in the end, you can change most things about a house but not the location and there are many good reasons people want to live on the Peninsula. 

 

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