Emotional Mistakes Buyers Make
For many, buying a house is the biggest financial transaction they will make in their life. According to real estate professionals, this doesn’t stop a lot of people from letting emotion cloud their judgment. Here are some of the most common emotional pit-falls to avoid before getting locked into a mortgage for the next 15 to 30 years:
Thinking the best deal is just around the corner
The market has been on the rise for quite some time in Hawaii, and chances are it’s only going to continue to go up. Inventory is at an all-time low, so sellers have quite the advantage here, many receiving multiple offers above asking price on a property. Work with your real estate agent to find a property that works for you, and decide on it. In this market, it’s important to put an offer in right away. There’s no guarantee a larger, cheaper property won’t come on the market tomorrow, but right now it's unlikely. And remember, interest rates are at 30-year lows, to the advantage of the buyer.
Love at first sight
It may have been love at first sight for your husband or wife, but this isn't how you want to choose a house. Realtors say that emotional attachment tends to cloud judgment, causing homebuyers to fail to see the bigger picture such as market data and historical pricing or even major flaws in a property. There’s no such thing as a perfect house, so don’t let your emotions trick you into thinking there is. Remember, before this is home sweet home, this is simply a really expensive purchase you’ll be paying for years to come. Make it count!
Overestimating your handyman skills
What if you find the perfect house, but it needs a little work here and there? It could end up being a great buy, or it could be your biggest nightmare. Do your research, and know your skill sets. If you have to pay someone else to renovate your property, you are going to wind up paying a pretty penny over asking price. Plus, with all the permits and regulations Hawaii requires, you could be wrapped up in red tape for years.
Posted on Monday, May 6, 2013 in Permalink