Does thinking about buying real estate make you feel nervous or are you ready to plunge in? During the process of buying, you’ll probably be both hesitant and decisive. PJ shares Four Key Pivotal Hacks for confidently making real estate decisions.
Are you hesitant or decisive?
Does thinking about buying real estate make you feel nervous or are you ready to plunge in?
Can you see yourself confidently signing an offer to purchase a house worth hundreds of thousands of dollars or does the idea terrify you?
During the process of buying real estate, you’ll probably be both hesitant and decisive.
These are natural reactions you may think, but buying real estate is not a natural activity for most of us.
In fact, purchasing a home may be a once-in-a-lifetime action for some.
The rest of us may buy two, three, or more properties over our lives. However, few purchase enough real estate to completely understand what is going on or to consistently make the best decisions alone–unless they turn professional.
Even investors, who buy many properties over their careers, will not always be right or even confident about their decisions although many may never admit this. ,
The key to a successful purchase lies in controlling both the urge to make snap decisions and the urge to change your mind about what you’ve already decided, that is, to <i>second guess yourself
• The downside of decisiveness involves reacting quickly to impressions, negative or otherwise, based on superficial information or details. “Definitely do not want to buy that one” reactions to out-dated but easily-changed decor or interior design may close the mind to otherwise-obvious benefits of the “good bones” or layout of the building, its location, and/or its price.
• Hesitancy may pop up when buyers are faced with signing on the dotted line to purchase a house or to take on very significant mortgage debt. Without confidence in <i>how</i> and <i>why</i> a property is chosen or a solid grounding in real estate basics, hesitancy can undermine great real estate opportunities, especially when fed by time constraints in hot markets.
Four of PJ’s Pivotal Hacks for Overcoming Decision Barriers
Buyers have many good reasons to be nervous or hesitant, but none of the reasons is an insurmountable barrier to making confident decisions.
To facilitate decision making, concentrate on shifting or transforming uninformed thinking into a constructive mindset. With the assistance of your real estate professional, pivot to an informed point of view.
In the following list of Four of PJ’s Pivotal Hacks for Overcoming Decision Barriers, you’ll discover Four Key Decision Barriers. Some will mirror your thinking; others could, although you may not realize this:
#1 Decision Barrier: No Real Estate Training
If you confidently make many decisions a day, or even an hour, in your day job, you may still find yourself hesitating with real estate. When you know your stuff, decisions come easy or at least easier. Buyers are not trained to buy real estate. They haven’t studied for years or had years of full-time work experience in the field. Most buyers are newbies.
#1 Pivotal Hack: Leverage Professional Expertise
You may not have done any of the above things to prepare to buy real estate, but all this intelligent, practical effort adds up to what real estate brokers and salespeople do to earn and maintain their licenses. Buying real estate involves many small decisions–more than most buyers make in their daily lives–which culminate in the “sign or not sign” decision. Leverage the experience and expertise of real estate professionals for your personal gain. They love that!
#2 Decision Barrier: Live with Your Mistakes
Online shopping has thrived because making returns is easy. Buy with a click; return the purchase for a full refund. With this degree of flexibility, who can resist buying. That’s not how real estate works. Once you buy there’s no quick, easy way out. We’ve all heard the horror stories about money-pit homes that drive the new buyers crazy or broke or both. Who wouldn’t worry that could happen to them?
#2 Pivotal Hack: Everything But Location Can Be Changed.
What can’t be altered is location. Use a map to visualize what surrounds the property. Drive and walk the area. Consider what you want to be near and what you want to avoid. Are there noisy or smelly things nearby? What do you want to be within easy walking distance of? Then, to be sure about what you’re buying, make your offer to purchase contingent on a reliable home inspection, which you attend. Offer-wording will ensure the seller pays for discovered necessary repairs or you’ll share expenses, but if that doesn’t work out, you walk away without penalty. Most interior and landscape issues about a home can be changed or improved with renovation.
#3 Decision Barrier: Spending Money You Don’t Have
Mortgage worries keeping you awake at night? Be clear: it’s not the mortgage. Stress is caused by the pressure of repayment when you do not fully understanding what you’re getting into and how to get out of it.
#3 Pivotal Hack: Leverage Mortgage Broker Expertise.
Mortgage Brokers (not mortgage bankers) work with many competitive-rate lenders. They shop their lender network for the best rate and terms for your mortgage. These licensed and regulated financial professionals act as an intermediary between you and potential lenders. Mortgage Brokers work on your behalf, even though most commonly they collect their fee from the lender. Brokers will take you through the application process including checking your credit score and helping you file an application that can be sent to many lenders over a short period to earn you the best rate and terms. Resource: National Association of Mortgage Brokers.
#4 Decision Barrier: Too Many Choices to Make
Which neighborhood? Which style of home? Which street? Which price range? Which…? The goal is not merely to eliminate properties from your list. Your goal should be to determine the true potential of each property from your perspective and evaluate it as a possible home.
#4 Pivotal Hack: Consider Properties One at A Time
Concentrate on one property at a time. Rather than trying to keep all the properties and their details in your head, take notes or build a spread sheet on paper or digitally. Many real estate professionals provide viewing checklists to help buyers easily keep track of details and relate them to buyer priorities. After viewing a property, evaluate it’s worth to you: Offer worthy? Needs more research? Why is it a definite “no”? Use professionals as sounding boards. Invest time developing your purchasing priority list. The expression “must haves” may trivialize what is essential to the lifestyle and financial investment you want and need to make when you buy.
Before you start viewing properties, have this hesitant-decisive discussion with your real estate professional. The right mindset will get you the home you deserve.
Resource for professionals: How do you make decisions? PJ shares a post titled “Anticipate Decision Barriers.”