In a perfect world, it would be easy
to always be objective and make rational decisions based on sound
information. In reality, emotions and timing often have a big effect.
Sometimes the best you can do is try to set the stage so that you
minimize the subjective influences
.
Give yourself power and control. Don't
find yourself in the position of "having" to buy and
doing so in haste.
1 - Work out the finances first.
Paying cash? Getting a mortgage? Find out what you can afford
and check out all your various options.
Meet with whatever experts you need
to in order to have all your facts - a lender, your tax advisor,
etc. Knowing exactly what you want to spend and can spend will
eliminate time spent looking at properties you can't have.
Not only that, when you find the right
property you can make a "clean" offer without a financing
contingency. Sellers are more likely to respond favorably to clean
offers.
2 - Unless you really want
to own two properties, sell first. Then buy. First of all, the
property you want will probably not take a contingency offer.
So unless you are prepared to own both (and you have to plan
for a worst case scenario) you are wasting your time with the
offer.
Second, if you are emotionally attached
to what you want to buy you won't be as objective on selling your
home. You may take less than it's worth so that you don't lose
the other home. There's nothing wrong with that as long as you
understand the financial implications.
3 - Use a realtor who knows
the market. That may sound too simple in this age of the internet,
when buyers have access to the same data the agent has. The difference
is the ability to interpret that data.
Full-time realtors do more than show
homes and write contracts. They study market trends and observe
area fluctuations. You are thinking about your needs now. But your
agent is thinking about both now and in the future when you are
ready to sell again and looking for your future resale opportunities.
In addition, the internet is an increasingly
non-objective source of information. Many websites do not display
all the properties that are for sale in a given area because of
contractual conflicts. And most new communities are not listed
at all in any search vehicle. A professional realtor should be
able to show you all the homes that fit your needs.
4 - Wait till your toes curl.
In other words, don't get pressured into making a decision. When
you find the right home you will know it (your toes will curl
or the little hairs on the back of your neck will stand up).
That doesn't mean look at 200 homes
before you make a decision. Sometimes it's the first home you see.
But don't let an agent, a seller, or a spouse, push you into something
you don't feel good about.
5 - You can't have it all.
Decide what is most important in your next home and put it into
perspective. If it's location, or price, or view, or square footage,
or school districts, or amenities, or whatever.
Remember that some things can be changed.
Floors, kitchens, landscaping, etc. are all changeable. So if they
are not perfect, they can be. But location, view, amenities, etc.
are there forever.
No matter what your budget, the good
fairy of real estate did not go - poof! There it is. It simply
doesn't happen. Everyone has to make compromises. So decide what
truly matters to you and put that at the top of your list. Give
in on what doesn't matter as much.
Follow these guidelines and you'll
get the home you desire.
