From Renting to Owning: How Two First-Time Buyers Got the Monthly Payment They Wanted

From Renting to Owning: How Two First-Time Buyers Got the Monthly Payment They Wanted

I had the privilege of helping some good friends become first-time homebuyers. They had rented for years and had reached their limit. Rent kept climbing, the neighbors and the landlord made every month harder than it needed to be, and they were ready to see what buying could look like.

We started with a real conversation. Homeownership isn't cheap, but it can absolutely be worth it. My advice was simple: don't rush, and fall in love with the numbers before you fall in love with the house.

I connected them with my lender, and they talked through rates, down payment options and exactly what they were approved for. It was doable, but tight. What mattered most to them was the monthly payment, so that became our guide for every decision, including negotiation.

We toured several homes and found one that fit the budget, and they loved it. The deal was not simple, though. The home was priced above its value and the HVAC was at the end of its life. My clients also needed seller concessions to make their rate more favorable. We offered asking price with $25,000 in concessions and a full HVAC replacement, and the seller accepted.

Then the appraisal came back low, which was the moment I'd been worried about. The seller wasn't willing to lower the price and keep the full concessions on the table. So how do you turn that into a win for the buyers?

We got creative, and everybody had a part in it. I reduced my commission from 3% to 2%. The seller lowered the price to the appraised value, replaced the HVAC and added $5,000 toward closing costs. My buyers then put some of their own funds toward buying down their interest rate.

It worked. They closed on the home with a monthly payment under the number they'd set at the start.

I took less so they could win more, and both sides gave a little so the deal could get done. Sometimes that's what it takes.

What I took from it: A low appraisal doesn't have to end a deal. Start with your monthly payment, not the list price, and talk to a lender before you tour a single home. A rate buydown, seller concessions and a price adjustment can each move your payment, and the right mix depends on your numbers.

Thinking of a move to Star, let's connect.