According to experienced real estate agents, the most common mistakes home buyers make are emotion-driven mistakes. They let feelings override good judgment and wind up overpaying for a “dream home.” Buying a home is probably the largest financial transaction of your life, so reason and sound judgment should play a much greater role than emotion (though some emotional involvement is unavoidable. To help you out, then, here are a few tips on how to avoid buying a house out of emotion in Los Angeles.
Don’t Keep Looking for that Elusive Better Deal
It has been a buyer’s market for quite a while now, so many buyers have fallen into the trap of thinking there’s always a better deal out there, around the corner, on the other side of town, or somewhere else. Pursuing that elusive better deal is one of the causes of buying a house out of emotion in Los Angeles – or, rather, not buying at all.
Yes, home prices may drop, and mortgage rates may go down. But you never know. Emotional attachment to and pursuing the better deal may cause you to wind up paying more when you finally do decide to buy.
Don’t Overpay for the Perfect Home
The other side of that buying a house out of emotion in Los Angeles coin is overpaying for what you consider your “dream home” or the “perfect home.” The reality is that there is no perfect home – they all have flaws and drawbacks.
Sometimes, though, a buyer finds what she thinks is the perfect home (and in some cases, it may very well be) and is then willing to overpay and overextend herself financially. Reason should step in here and tell the buyer that her perfect home probably isn’t the perfect home for other buyers and that she can probably purchase it without overpaying. The value of the total investment should be weighed against the value over time for the enjoyment of the home.
Don’t Fall in Love at First Sight
Yes, love at first sight still happens, but it has no place in real estate deals. For those guilty of it will be buying a house out of emotion in Los Angeles. To head off such a situation, some real estate pros advise looking at no fewer than five houses before making a decision and signing a contract. Falling in love with the first or second house viewed may result in buyer’s remorse, along with overpaying and being unable to sell the home for the needed price a few years down the road. So be sure to take emotion out the equation, don’t fall in love with the first house, and do the necessary due diligence.
Don’t Lowball and Make Unrealistic Demands
A final aspect of buying a house out of emotion in Los Angeles involves being overly attached to the process of getting a good deal. Some buyers are simply in love with negotiating, making demands, and trying to see how many concessions they can get. And in most cases this is counterproductive.
Yes, we all want to get the best deal we can, but lowballing can alienate the seller and ruin your chances of buying the house you really want. Generally, this all stems from having unrealistic expectations, with emotion overruling reason and reality.