There are multiple instances in your life when emotion will get the better of you. The day you graduate college or the day you get married or the day your child enters the world are all exciting and emotionally taxing milestones. So is buying or selling your home.
Whether it's purchasing the nest egg you've always wanted or selling the home that housed your many "firsts", the process can be as emotional as it's confusing, as impassioned as it's exhausting. It's easy to get caught up in that house with "the perfect closet" or the first home you viewed and instantly fell in love with, while overlooking potential problems or costly rejuvenations. It's just as easy to expect more than the market can offer or price your home too high because it was the place where your child took their first steps.
Here are the 5 common mistakes home buyers make when they let their emotions take over.
1. Overpaying for that "Perfect Home"
If you're looking to purchase a house, chances are you've already learned there's no such thing as picture perfect. That doesn't, however, stop you from contemplating the trade of your first born for that home you just can't seem to live without. Just like dating, there are other fish in the sea and even though your favorite home has a kitchen that's to die for it may also have some expensive fixer-upper projects that another home wouldn't.
2. Overpricing Your Home
Sometimes it can be extremely difficult to part with a house, especially if you have spent a significant amount of time in it and even if your new home is an upgrade. This separation anxiety can have you equating the sentimental value of your home to the monetary value, which will make it much more difficult for you to sell your home.
3. Waiting and Waiting and Waiting
Thanks to an unstable market and declining mortgage rates, most buyers are convinced if they keep looking around and "wait it out" they'll find a better deal. This, however, is not always the case. The market is always going to be unpredictable, which means rates could climb just as easily as they could fall. There comes a time when, simply put, you just have to pull the trigger.
4. Falling in Love at First Sight
Just like purchasing a vehicle, it's easy to fall in love with the first home you see. This unfortunately inhibits you from completing your due-diligence. There could be an equally-fantastic home, listed for less, just waiting for you. Make it a rule to look at no less than five properties before making up your mind on your future home. Perhaps you do go back to the first home you viewed. At least you will know that you did your homework and the chances of feeling that dreaded buyer's remorse will have dropped significantly.
5. Unnecessary Cold Feet
With a fluctuating market and 25% of homeowners behind on their mortgages, it's easy to feel somewhat hesitant. Those emotions of fear and anxiety and trepidation can be just as debilitating as if you had let them keep you from walking down the isle on your wedding day. Sometimes, you just have to jump.
Try as you may, it is extremely difficult to rope in these emotions and keep them under control. Buying or selling a home is an emotional investment as well as a financial one. Throughout the process of negotiations, inspections, deadlines, staging, escrow and the unpredictable last-minute changes that can occur, you won't be able to stop yourself form becoming emotionally charged. You are, after all, human.
That's why you need an experienced, professional and honest real estate agent that will do the dirty work for you. Buying or selling a home should be a joyous experience, not an emotionally-ridden nightmare.
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