First home buyer mistake No. 1:
Getting too emotional after missing out once.
A.K.A “Buying on the rebound.”
Chances are you look for the same features in a home that other buyers look for: Sun, outdoor living, a nice kitchen, a handy location. As a result, you can expect to have some competition from other buyers when that ideal home comes along.
In a competitive situation, it is unlikely you will have the opportunity to negotiate 1 on 1 with the owner and you may only have 1 chance to put your best offer on paper.
Missing out when you are in competition sucks. It is so hard to know what price to put down, especially if it’s the first offer you have made. Missing out hurts, whether it’s by a small amount or a big amount. More than that though, buying that home was your big chance to go out on your own and realise the financial freedom of controlling your own destiny. You have imagined yourself living there, turning it into your own little love nest, possibly even raising your kids there. When you find out someone else has taken that dream away from you the disappointment is hard to put into words.
This is the time to be really careful. The big mistake I see many home buyers make is after missing out on their ideal first-choice home they become determined to buy the very next home they see at all costs just to get rid of that empty feeling of missing out and being homeless. The problem is they usually end up buying a home they don’t like as much and usually end up paying a really high price for it because they are determined not to miss out to another buyer this time!
Don’t make a rebound purchase. Take a few deep breaths, decide what you can learn from the experience and remind yourself that more houses come on the market every day. Be mentally prepared that you may have to miss out a few times before securing your future home. You will need to accept buyer competition for what it is – an unavoidable part of the process. Click here to read my top 5 tips on how to avoid missing out in the first place and always remember – a real estate salesperson can show you a home that no one else wants to buy (so you have no competition), but would you really want to buy that home anyway?
Till next time,
THOUGHT OF THE WEEK:
“Success is not final, failure is not fatal: it is the courage to continue that counts.
– Winston Churchill