Emotion of Buying your Home - How to Avoid Making a Purchase you Regret

Emotion of buying a home – how to avoid making a purchase you may come to regret.

Whether you are a first time buyer, or you have many home purchases under your belt, buying a home is a very emotional process, but if you allow your emotions to dominate your decision making, you can fall foul of buying pitfalls and come to regret your ultimate buying decision. “Buy in haste, repent at leisure”.

Not only could this be costly from a financial point of view, but buying what turns out to an unsuitable property can have far reaching consequences on every aspect of your life.

Once you have set your heart on a particular property, reaching a decision with emotional overflow, it is very difficult to then assess your decision with cold calculated objectivity…the manicured garden is so stunning, it clouds the reality of how much time and effort will be needed trying to maintain it to that standard.

So, here are some tips on how to approach searching for and buying your next home, to help you make the right decision for you.

1. Budget and Finance:

May sound obvious, but knowing your budget…. and sticking to it…can often simply fly out of the window when your emotional dreams come into play.

Agreeing a budget in advance, including making provision for costs of purchase is imperative. Financial strife on a day to day basis will soon diminish any new home appreciation and could lead to other problems associated with such worries.

Also, you may have agreed a budget, but how will you raise funds – do you need to take steps now to ensure cash will be available as soon as needed to purchase, or have you already agreed a loan in principal. Budget and finance are the foundation of your purchase.

2. Needs versus Wishes:

It is all too easy to make a long list of wishes for requirements of your new home and to lose sight of what is really important – your needs. Not only should this apply to the property itself, but the location and lifestyle want to enjoy when you move.

Before you even begin your search take a cold calculated look at your wish list and decide on key points which are really important, keeping a mindful watch on the remaining wishes, to ensure they remain points of compromise, not primary needs. Create a tick list of needs to keep you on track.

3. Research:

If your circumstances are flexible and you aren’t tied to any particular area for your purchase, (e.g. your move isn’t dictated by a job acceptance, or need to move closer to elderly parents etc), use your needs list to research suitable areas as a first step. Match suitable areas to your budget and you are now starting to narrow your search. Only then should you start to research properties.

The web is an empowering tool for this process and can save you a great deal of wasted time and money when you begin viewing properties if you narrow down the “where”, before even thinking of booking viewings.

4. Time:

If your circumstances dictate you do need to move quickly, then if possible, consider giving yourself more time by renting in the area, rather than rushing to purchase. Better decisions are made when taken under less pressure.

Unless time is really of the essence, give yourself plenty of it to:

- explore your shortlisted areas

- plan a viewing schedule, with travel time and time to revisit if needed

- to take a step back and clinically consider each property in respect of your needs

- look at other options for comparison.

5. Viewing: have a plan

When you view a property, it is your opportunity to discover everything there is to know about the it; but that simply won’t happen if you don’t have a viewing plan.

Have a questionnaire ready for sellers, to gather as much information as possible about the property, location and neighbourhood.

If you don’t not only could you miss important flaws, potential problems or aspects which mean the property is totally unsuitable, by the time you have seen a few properties, the detail will merge and you will start to forget important points.

6. Eliminate the “unsuitables”:

This is where your needs list is key….but only if you make a determined decision to apply it to each property you have viewed. If you can shortlist say, 3 properties as favourites, at the end of each day of viewing, your final decision will be so much easier.

7. Always re-visit:

Goes without saying that at least one repeat viewing can help you make a calculated decision, rather than an emotional one. Look with fresh eyes and re-do your checklist of questions, checking your needs are really being met.

8. Making an Offer:

A fine balancing act can make the difference between success and failure at this stage:

- wait too long and you may be pipped at the post.

- equally, take time after the final viewing to reconsider your options and ensure you have found the best property for you.

- don’t offer unless you are certain – walk away if you aren’t.

- while everyone wants to feel they have bought a bargain, making a sensible offer can often prove to be more successful than starting with an offer so low, the seller feels insulted (they have selling emotions too!).

- determine your ceiling and whether there is a pre-determined element of flexibility … within your budget!... and stick to it.

- be clear about what you are offering to purchase (e.g. does the property include furniture, or not?); and be clear about how you will finance the purchase – it is important the seller knows your finance plan. Make the offer in writing, including full terms and conditions; the detail makes it clear you are a serious buyer.

- Give the seller time to consider and respond. It is, after all, a very big decision for all parties.

- Be prepared to negotiate and don’t make it personal – a factual negotiation will be more successful and allow objectivity and rational decision making to dominate.

- All parties should sign an “offer agreed” document, detailed, to eliminate ambiguity and future confusion. Clear communication is key.

9. Be prepared to walk away:

It is all too easy to keep negotiating and increasing your offer, as your emotions influence your determination to achieve an agreement. Adopt the mindset that, even if you simply love the property and it ticks all your ‘need’ boxes, plus your wish list, if you have reached your agreed budget and your flexibility ceiling is in danger of being breached, be prepared to walk away. It may just not have been meant to be!

10. Seek professional advice:

Even at the early stages of your property search, professional guidance can help you make decisions which reduce the possibility of you making an emotion driven property purchase you come to regret.

Summary:

A plan of action from the outset will simplify your property search, making the buying process much less stressful. A considered, measured, practical approach, using strategies to reduce emotional decision making will ultimately find you the most suitable new home, which you will live to enjoy, not regret.