Buying a house is the largest single financial transaction most people make in their lifetime. It is NOT like buying shoes! You need to make a wise choice as it will have a lasting impact on numerous aspects of your life. Yet you’d be surprised how many people spend more time contemplating shoes than a house purchase.
When someone ‘falls in love’ with a home they often rush ahead with the purchase afraid they will ‘lose’ the house to another buyer. While it is normal to have some emotion in the process, don’t let it lead you too fast.
With rushed home-buying decisions, your head may be convinced by your heart to pay as much as it takes to get the house. What if, down the road, you need to sell? You may not be able to get the amount you spent. People also fall in love with one or two aspects of a home but the rest of the property doesn’t fit their needs. By taking a pause you’ll be better able to assess the house’s fit to your lifestyle and the pricing and offer strategy.
We’ve all heard stories about the “money pit” that a friend of a friend bought. Chances are they rushed into the purchase. When houses are selling fast, it’s easy to get caught up in the excitement, but proper due-diligence gets missed, which can be costly financially and emotionally.
Prices rising dramatically, (as we saw around 2004), is not an indicator to ‘buy now’. Often it signals a reduction in pricing down the road. If you buy at a high and the market dips, you can’t sell your house for what you paid, leaving you in a complicated financial situation. Do your research and talk to a good realtor who will explain the market trends.
In a market that is moving quickly, you can take 24 hours to think about your offer strategy. However, you must ensure that the property is inspected and there is a bank assessment if you are not going to put these conditions on your offer.
In a slower market, 7 to 10 days is reasonable.
In all cases, make sure you have your pre-approval with your mortgage specialist in place, know the neighbourhood and make your decision on a solid combination of facts and emotion. You don’t ever want to be making a purchase with emotion leading the charge.
Take the time you need to consider the pros and cons and ask for input from others. Yes, it is difficult when you lose a property you had your heart set on, but sometimes, when the heart is deciding, it’s the best decision to let it go. Let facts and logic guide your heart on the purchase of your next home.