Keep Emotions in Check Purchasing Real Estate
Getting too emotional when buying a home can cost you big time! The last thing you want to do is create a lot of extra stress for yourself when buying in home. In order to make your purchase go smoothly we have consulted with Lolly Spindler of HouseHunt Inc who has come by to offer some excellent first time home buying tips. It is easy to make home buying mistakes especially when you have never done it before!
Whether buying or selling a home, emotions are always involved in the real estate process. So how do you keep your emotions from hindering your judgment when buying a home? It can be tricky, as optimism and excitement are prone to be high. However, it’s important to keep a clear and level head when it comes to making one of the biggest purchases of your life.
Tip #1: Don’t Pick a Realtor Because She/He is “Nice”
Picking a Realtor is an incredibly important part of the home buying process, so make sure you choose wisely. Don’t base your decision solely on the fact that you get along with the agent. Make sure you interview at least three agents, ensuring they have a plan in place and enough time to take you on as a client.
Tip #2: Focus on Your Bottom Line
At times there’s nothing that can keep us more grounded and realistic than the number on our bank statements. Money comes most into play during two parts of the buying process: looking at homes and writing an offer on a home, which leads us to tips three and four.
Tip #3: Don’t Look at Homes Outside of Your Price Range
Stick to the amount of money you’ve been pre-approved for, and don’t look at homes that are priced higher than what you can afford to pay. The worst thing you can do is fall in love with a home that’s too expensive just to have your heart broken once reality sets in.
Tip #4: Remember the Seller is Emotional Too
When writing an offer on a home, consider what you can afford and the fair market value of the house. Understand that the seller may have priced the home high emotionally, so if your offer is below asking price, be prepared to justify it so as not to offend him/her.
Tip #5: Prioritize What You Need, Not What You Want
Many people fantasize about their dream homes, but when it comes down to it, it’s much more important to have what you need than what you want. Once you’ve decided on a few neighborhoods and the time has come to zone in on a house, it’s important to land on a specific number of bedrooms and bathrooms, and a minimum amount of square feet. Use this checklist to prioritize what you need, would like to have, and don’t need.
Tip #6: Don’t Get Attached
Buying a home can be stressful, and you may feel all of that stress wash away once you find a home that fits your needs. However, don’t get attached. This is one of the worst things you can do during the home buying process, as many things can happen and come between you and the house you have your heart set on. Only let yourself get your hopes up once you’re closer to closing.
Tip #7: Remember You Can Always Make Changes
This may sound funny, but you may be better off deciding on a home that you aren’t 100% happy with. This is because, as most buyers tend to forget during the house hunting process, you can always make changes to the house. By looking at homes that cost less than what you’ve been approved for, you may be able to find a home that fits your needs, invest a little money into remodeling, and transform it into your dream home.
Tip #8: Keep a Cool Head When Bidding
Bidding situations can be incredibly stressful and make it hard not to get emotional. In order to help avoid them, ask your Realtor to include an escalation clause in the purchase contract. This will allow for incremental increases in the offer price based on competing offers up to a certain price point you determine. If a bidding war does come to pass, maintain your calm by being prepared: have all of your financing and documents in order and make an earnest money deposit.
Tip #9: Trust Your Realtor
Your real estate agent is there to help you remain level-headed and not overly emotional during this process. Trust them to guide you, as they have a lot of real estate experience; after all, they do this for a living. Listen to the advice they give and try to put their knowledge of the process before your emotional reactions to it.
Be prepared to experience a lot of emotional ups and downs during the buying process, but don’t let these emotions cloud your judgment. The worst thing you can do is make a rash decision that ends up costing you the home of your dreams.
By following these tips you’ll be better equipped to approach the home buying process in a rational, calculated manner. Remember, this will most likely be the biggest purchase you will make in your lifetime. Do you really want it to be hindered by a few fleeting emotions? Use this advice and you will more than likely be smiling in your new home without all the emotional heartache of being involved in a real estate transaction!