COMMON FEARS OF BUYING A HOME
Buying property is a major investment, both financially and emotionally. So, it is no wonder some people are a little bit scared. Fear is a powerful human emotion. Be bold and take a risk. Even if you are the first person in your family to own a home, trust that it is a worthy goal and step into homeownership. Below are some common fears that can stop you from making the leap into the property market and what you can do to solve them.
Fear of Over Paying: Many properties do not have accurate price guides and are listed for sale by inexperienced agents or for sale by owner, where the owner prices the house at what they dream it is worth due to their emotional connection. Buyers often worry they are taking a stab in the dark when it comes to prices. Some buyers become overcautious, spend far too long researching in a moving market, and end up in an analysis paralysis where they become unable to make a decision. The only way to overcome this fear is through diligent market research. Take price guides as just that, do your own sales research, and seek independent advice from the experts. However, do not get bogged down in too much research or let the research hold you back from acting if you see the right property. You should also trust your gut and choose to pay what you feel comfortable with if the asking price and your budget are good. With our without good comparable sales, you may just want to pull the trigger - I have rarely been sad buying something I felt was a great deal.
Fear of Buying the Wrong Property: The property market is full of uncertainties, and a fear of missing out on the "right" or "perfect" property is very common among buyers. People wonder if it is better to buy a smaller house closer to the city or move further away to get a bigger piece of land or a bigger house. Is it better to buy a house to renovate or a house with recent upgrades? And which suburbs are going to do better? it is advisable that buyers sit down and really map out a strategy for their property purchase. What stage of life are you in? What are your short-term personal and family goals? What is really important to you? It boils down to understanding your priorities. Most people have to compromise when buying a property. That is part of the fun on the journey. There is no perfect decision and no perfect house.
Fear of Selling Agents/Buyers Agents: The process of buying a property can be extra overwhelming for certain buyers, like those entering the property market for the first time or those who have had a bad experience with an agent. As much as I enjoy the TV shows that feature real estate agents as the main characters, they do add to the negative view of agents. Some people feel that real estate agents are not very transparent and worry that they will get tricked or blindsided in the process. There are good and bad, weak and strong, honest and lying agents. That is just a hard fact. Choosing wisely is important. On the other hand, do not be super paranoid, or you will sabotage all agent relationships. There are thousands of caring and knowledgeable real estate agents across each state and region. Familiarize yourself with local agents, and you will soon start to see the way they operate and how they differ, and you will become more confident in dealing with them.
Fear of a Bubble or Crash: We all want to have a crystal ball that can predict the future, particularly when it comes to the property market, where many buyers speculate about sharp rises or fear a bubble or crash. Some buyers are concerned they are buying at the peak of the market and paying premium prices and that they market might collapse entirely. Or, if the economy turns bad, jobs might be lost and mortgages cannot be repaid. While investors might want to time a purchase carefully by watching the market, others might not need to worry quite so much. If you are buying a home you plan on living in for many years, the state of the market is less of a concern compared to the importance of timing your purchase with when you are financially and emotionally ready. The best time to buy is when you are ready. The focus should be to buy a solid property that will do well in the long run, rather than worry about market blips. If interest rates go up, no worries; you have already locked in your rate. If interest rates go down, no problem - you can always refinance. Do not overthink, and do not succumb to fear.
Fear of Missing Out: The most emotional of all property fears is the intangible fear of missing out. This can cause serious inaction in many buyers. Many buyers worry that the perfect property is just around the corner and they will miss out if they buy now. When you are buying a property, you are buying at a given point in time. Buyers should not dwell on what has already sold or what may or may not come on the market next week. That is a futile exercise. The best you can do is make sure you have thoroughly covered the entire existing market. I have literally had buyers on the way to their closing who wanted to look at another house just to see the one that got away. They. had already done a home inspection and appraisal and had a U-Haul. The grass is not greener on the other side. Even if it is, make a decision and move forward. If your timing is not perfect, most likely the market growth will make it right in the end when it comes time to sell. As you are chasing greener grass, the interest rates are rising.
When buying a home, I strongly encourage you to push all of these common fears aside. Choose a good agent and a knowledgeable local market loan officer. Then, walk with confidence, ask good questions, and enjoy the ride!
**Has this post piqued your curiosity and/or do you have a general interest in real estate? Check out my book, The Real Estate Journey, available online through both Amazon and Barnes and Noble. You can also obtain a copy by visiting briansimon.com.
