As in every other aspect of life, home buying is fraught with emotional pitfalls. Bankrate recently looked at the most common mistakes people make when they begin searching for the perfect property.
As a general rule, people don’t get married after the first date. We don’t even buy cars until we’ve shopped around for the best deal. So why is it so common for consumers (especially young ones) to “fall in love” with a piece of physical property? No one knows for sure, but experts have pinpointed five typical emotional errors that potential buyers make.
Assuming a ‘better deal’ will come along tomorrowSome buyers never want to make a decision on a property for fear that a better financial deal will appear in the near future. This is common consumer behavior. We all do it with small things, and it is wise to spend some time in the house-hunting pursuit. But, don’t let your emotions keep you from making a decision. Yes, the market is unpredictable, but you need to get off square one at some point and make a decision.
Falling in love at first sight
Another common error home buyers make is typical in the world of relationships. Falling in love at first sight might be a romantic idea for young couples, but when it comes to homes, you’d best shop around before becoming attached to the very first property that meets your requirements.
Overpaying for the ‘perfect’ house
Be careful not to overpay for a property that you consider to be ‘perfect.’ When you go to resell someday, other buyers may not have the same tastes that you do, and you will realize too late that you overpaid for the property.
Assuming that ‘short sale’ is a synonym for ‘bargain’
Short sales can bring bargain prices to the table, but this is not always the case. Just because the property is owned by a bank does not mean you are getting a ‘bargain basement’ price. Always use a Realtor to help you evaluate short-sale properties.
Low-balling on price
Low-balling on your price offer is almost never a smart tactic. Educate yourself about current prices and make a realistic offer to the seller. Otherwise, you may end up losing your dream home to another bidder who sticks with real world prices.
The big lesson is this: never lead with your heart in a real estate transaction. There are too many factual considerations to consider, like resale value, structural quality, neighborhood, interest rates and the like. Before you buy, read through the above list and make sure you don’t fall into an emotional trap