How a Data Nerd Tackled Buying a House

Buying a home can be intimidating — a high-cost goal with a complex purchasing process. But it’s especially scary in a seller’s market, amid tightened lending standards, high prices, low supply and, oh, a global pandemic. In spite of this, more homes changed hands in 2020 than in any of the past 14 years, and I was among those braving the headwinds.

Because I’m a longtime NerdWallet writer and data analyst, you might not be surprised to hear that I spent hours playing with the numbers and made decisions that will ultimately save me thousands of dollars.

However, I’m not sharing a complex spreadsheet system or secret formula for choosing a mortgage. Instead, the lessons I applied in my latest home purchase — a hulking Victorian in small-town Kansas — prove that the best financial advice is a starting point, not an edict, meant to be applied through the lens of your own personal circumstances.

Know how the market relates to your circumstances

Active listings in November and December 2020 were down nationally about 40% year-over-year, and this shortage of homes was certainly being felt in the small North Carolina town I’ve called home for 15 years. I knew unloading my current home wouldn’t be difficult, even with its age (about 100 years) and all of its old house quirks (hello, plaster walls!), plus a shared driveway and aging HVAC system. I chatted with two local real estate agents who agreed I would likely have multiple offers in a matter of weeks, if not days.

Selling a home in this market might be a cinch, but buying a replacement could bring challenges. However, I knew I’d be shopping for a unique home in a lower-demand area, so competition wouldn’t be quite as fierce.

Sidebar here to explain: Demand for my kind of dream house is pretty low. I have a thing for big old houses, and not everyone is willing to take on a home built in the 19th century in need of TLC. Also, my only prerequisite on location was that it be within an hour’s drive of my nearest family members.

Once I made the decision to move, poring over old house listings during my lunch became an obsession. And when I stumbled across this one — managing to look past the seller's furnishings — I was intrigued. The list price, befitting a tiny Kansas town, certainly helped.

After a cellphone video tour from a local agent, and sending family members over to tour the home in person, I offered the full asking price. Yes, even without seeing it in person. Just a few weeks after deciding I was ready for a big move, I was under contract on an 1885 beauty with a grand oak staircase, 1960s carpeting, 1980s wallpaper and untold treasures in the limestone basement.

One week later, I accepted an offer on my North Carolina home, one that was 43% more than what I’d be paying for my new-to-me home in Kansas.

If you're thinking, "Well, congratulations, but I'm not really sure what this Cinderella situation has to do with me," I don't blame you. But while not every buyer might have my flexibility or experience, there are a couple of widely applicable takeaways.