Buying a new home is one of the biggest changes a person can make in their life. Given 29% of homebuyers chose to buy a home because they desired to become a homeowner, buying a house is a highly emotional decision. Homebuyers are often driven to buy a property without considering whether it’s a sound financial choice.
You need to find ways to balance both logic and emotions in homebuying. A home purchase should be a financially smart choice that you will love for years to come.
Below, we’ll look at the characteristics of logical and emotional homebuyers and how you can balance the two.
Emotions are the basis for nearly every decision we make. Advertisements are designed to get an emotional response out of potential buyers, driving them to purchase a product. Homes listed for sale are no exception. Listings use marketing buzzwords like “motivated seller” or “priced to sell” to elicit an emotional response from potential homebuyers. Knowing how to rein in emotional responses and balancing them with logical thinking is vital to the home buying process.
A logical homebuyer first examines if the house is a smart financial decision and takes all the emotion out of it. While each quality is vastly different, there are ways to strike a balance between the two.
What is an Emotional Homebuyer?
Characteristics of an emotional homebuyer include:
What is a Logical Homebuyer?
A logical homebuyer is concerned with:
When buying a home, both logic and emotions are important. But what’s even more important is to be a smart homebuyer by balancing these two qualities. Here are some tips that can help you do just that.
1. Partner with a Trustworthy Agent
Hire a real estate agent that understands what you’re looking for in a home and is familiar with the area you’re looking in.
A qualified agent will also know how to reduce risks in the homebuying process. They’re familiar with home sellers that may use those buzzwords we mentioned above to get you to act quickly. Terms like “short sale” are meant to have buyers think they’re getting a deal on a house when it is actually priced over its market value.
2. There Isn’t Always a Better Deal
Mortgage rates and home prices always have the potential to drop. Real estate professionals also make predictions on how the market will perform, but there are no guarantees. Fluctuations happen, and to ensure you’re prepared for them, know the value of homes in the area in which you’re buying and speak with your agent about them.
3. Don’t Believe in Love at First Sight
There is a chance you could fall in love with the very first house you see. Don’t think it’s the best option for you just because it ticks all the boxes on your wish list.
There are a lot of other factors that come into play, such as financial hurdles and underlying problems with the home. Look at multiple homes in the area you want to move to so you can see all that the neighborhood has to offer. By looking at lots of homes, you’ll be less likely to overlook major problems or flaws in the home. You might also want to look into getting a home inspector.
4. Keep an Eye on the Layout
As discussed earlier, an emotional homebuyer will assess the floorplan of a home to determine if it’s functional. This is one characteristic you should take with you on your journey. While numbers are important, finding the value in a home’s layout is just as vital.
5. What Memories Can You Have in the House?
Envisioning yourself and your loved ones in the home is a great tool to see if the home clicks with you and you can stay there long term.
If there’s a play structure in the background, you can picture your kids hanging out there on weekends. The home may feature a large kitchen and dining room, which will be perfect for entertaining guests.
As a homebuyer, you can be sentimental and think about the memories you can have in the house while being objective.
6. Establish Boundaries
Before you begin your home buying journey, set firm boundaries.
Get pre-qualified for a home loan so you know exactly how much you can spend. Don’t look at homes that are well over your price range so you don’t get emotionally attached to a house that isn’t a financially smart purchase.
If your gut tells you it’s okay to spend a bit more, don’t listen to it. Stick to your budget.
Both logic and emotion are needed when purchasing a home. You want to buy a house that you connect with that is also a financially smart decision. With either side of the coin, you don’t want to be stuck with a house that you’ll regret buying within a few years.
While you move through the home buying process, monitor your decisions and determine if you’re leaning too far to either side. Finding a balance in the middle will ensure you purchase a home you’re happy with for years to come.
If you want to have your dream home built in the Dayton area, contact Oberer Homes.
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