It’s interesting how many buyers I see make the same mistake when looking for a new home.
Everyone wants a bargain or at least the feeling they got one. Yes time and time again smart people are making the wrong decisions. These decisions are based on logic that in my view does not trust their instincts or emotions.
And I am not talking about the emotions of getting carried away with a bidding war, I am talking about the emotions surrounding “looking like a dummy” by paying “overs”.
Those that really lose out are the buyers who are not confident enough to back themselves and pay the right price to secure the deal. Instead they keep trying to compete with other buyers by offering only $5,000, $10,000 even $20,000 more than their estimated “fair value”.
Lets look at one couple that found a place they loved. It felt good and they really had a connection with this home. It ticked all their boxes after spending months discussing exactly where they wanted to live and how much they would be prepared to spend.
They had also spent considerable time conducting online research before they started their open house journey. And guess what… in their first weekend they found “It”!
But they felt they hadn’t seen enough of the market and felt it was too soon to make such an important decision.
WRONG. Let me explain.
This is the biggest mistake people make when they are looking for a home as opposed to an investment property.
Home is where the heart is. And this couple over thought their decision and didn’t trust their instincts. Really their instincts were based on their considerable hours of research and discussion about where they wanted to live, property features and their emotional hooks.
Common sense or their inner responsible voice talked them into looking around little more. The sad facts are that they missed out on their home, the one they instinctively loved. They missed out because of that fear of paying “overs”.
Fast forward 14 months and this couple are still looking.
You can only imagine the weekends wasted at opens not to mention the countless days, weeks and months searching online to develop new short lists of homes that “kinda suited”. And at the end of the process they had to enter into another bidding war.
The best homes are always going to attract strong buyer interest.
All this could have been prevented had they trusted their instincts (based on their own solid research) and bought that home they found right off the bat.
Importantly, had they just paid $30,000 more on the second home they found they would have been in the market. They would have also been living their dream and moving forward with their lives, their family and all that is connected to the home.
When you find the place that “feels right”, jump in be it the first week or the 10th week. Back your instincts and don’t be afraid to pay “overs”. If you miss out and get a second chance learn from your mistakes. Realistically “overs” on a thirty-year mortgage are peanuts each month.
All the best with your property hunt!