Your Question: Are There Any Dangers to Falling In Love with Real Estate?
Professor Tate's Answer:
Having never gone through the process before, first-time home buyers are at greater risk of falling in love too soon with real estate. But whether we’re first time buyers or we’ve done this before – it’s important to remember NOT to fall in love too quickly.
It may be the first house you’ve looked at. It’s perfect. You’re already imagining your new wall colors and figuring out where to place your couch and TV. Your heart is already set on it. This is the one.
Woah! Back up for a minute! That’s dangerous thinking. You never want to jump in too fast.. it could lead to a hasty decision, you may end up paying more than the market value supports, making resale difficult, and down the road buyer’s remorse could set in. All of this just from falling in love too fast.
So what should you do?
You want to be aware of what’s out there. In order to make a wise decision that you won’t regret later, make sure that you look at at least a handful of other properties to compare to the one you really love. How do they compare? Maybe some have features that are actually better. You may find that the one you originally loved is priced quite a bit higher than the others without any discernible reason. You want to make your decision with confidence and not look back later wishing you hadn’t rushed in. Buying a house is a big commitment – so make the right decision!
Besides avoiding buyer’s remorse, you’ll also avoid blinding yourself to the negative aspects and potential problems with the property. When we’re so excited, and our hearts have already jumped into the idea of this being “the one”, it’s very easy not to look at things realistically. How is the foundation? The plumbing? Are there any major issues that you may not see? Are there any minor issues that you may be overlooking? You should have a realistic view of the home you’re interested in, maintenance issues, and any problems that may need your attention and will require money to fix. How does all of this compare to the other properties? Will it be worth it? (If you put an offer on a house, it’s always a good idea to get it inspected.)
If after looking at more properties, you are confident that this is the home for you, than you can look forward to making the offer. This is another area that will need your caution. If you’re already attached to this house, be careful that you don’t make an offer based on how badly you want it – but rather, make sure you’ve studied up on what comparable properties have sold for and only be willing to offer what it’s worth in the current market. This will save you troubles down the road.
When you can finally call the house your home, congratulations! You can feel good knowing you made a wise decision.
You asked, now you know!
-Professor Reel S. Tate