You make pretty big decisions in life; the university of your choice, buying your very first car or planning that once in your lifetime wedding reception. But according to my clients, nothing beats making the decision of buying a home, especially when it is your very first one.
The day you decided the first thing you want to do with your spouse is to buy a home together, that feeling of blissfulness and love.
You start your research on your preferred districts, comparing between a 2 bedroom or a 3 bedroom, choosing between an open kitchen or a larger living room.
And then, you look at the numbers in each listing. To top it up, you receive the In Principal Approval from the bank and your heart stop beating for a whole minute. You take a good look at the monthly mortgage debt and wonder if you are making the right move. On top of this, want to know more about doing your own financial calculations?
The excitement and enthusiasm soon turns into nervousness and anxiety until it all becomes too overwhelming.
What evokes the emotions when buying a home?
According to Jeff Shore, speaker, author and host of the new podcast “The Buyer’s Mind.”, people make decisions based on the logical and emotional side of the brain.
Emotional – Lifelong memories of growing up in one particular area is enough to persuade a homeowner to buy that home even if the resale value of the home is not be as favourable.
For many, looking through the pictures online can be exhilarating as all of them look really good! However, keep in mind that hardly anyone will want to view a home that looks rundown and tattered, some pictures are beautiful thanks to filter features.
Emotion (Pain) – Factors such as travelling time, time sacrificed from the long travelling distance, the need to be near schools for their children, or parents etc.
Emotional (Promise) – First impressions do play a big part. It brings about the motivation of joy and happiness to someone, such as purchasing the home that appeals to both your needs.
Logical (Fear) – During the negotiation and closing process, the number one fear in most buyers are doubts. Are they paying much more than the market rate? Have they really calculated their financials properly and accurately? What if the market plunge and home values drop significantly? Will this purchase become the biggest mistake instead?
Their minds will be running wild with all sorts of doubts and questions because of the huge amounts they have to pay out once they’ve signed the papers, it is said to be one of the scariest moment for anyone.
So how do you overcome this?
1. Speak to a real estate agent
Communicate clearly your needs and requirements, eg location, number of room etc. Do your financial plannings clearly with the agent.
If you have certain superstitions, make sure to let the agent know before the search so he / she can help you to zoom in on the available options.
In doubts, make sure the agent takes the time to explain them clearly to you. Do not hesitate to ask the agent to share the property transaction data with you so you are well aware of the market value of the surrounding homes.
2. Do not buy a home impulsively
A home of your favourite colour might look really appealing, but do not put down an offer without first thinking through it. What are the available public transportation nearby? How is the market transaction value of the surrounding homes?
When homeowners purchase a home out of emotions, they might end up buying into a place with an ongoing price war, thus paying for a home that is more than it is worth.
3. Look into the lifestyle
Whether you are buying for homestay or for investment, always look at the surroundings of the development. Is there any local cafes, schools, wet market, amenities etc? The kind of lifestyle will affect the possibility of someone wanting to stay in that area, the more amenities or recreational spaces available for the residents, the higher the contentment for the homeowner or tenant.
4. Communicate openly with your partner
If you are buying the home together with your spouse, be sure to listen to each other’s perscpectives, have open and honest discussions and to come to mutual agreements.
This will help relieve some of the stress during the purchasing procedure, for example if you are worry about the affordability, work the finances out together with your spouse since both of you will be financing the mortgage.
Working as a team will not only make the home more meaningful to the both of you, it can also bring about lesser disagreements.
5. Do Your Homework
Although you are going to engage a real estate agent to help you out in the negotiation and closing process, it is good to have some information or knowledge about the area first.
This way, you will be able to have some ideas of the kind of home layouts that appeal o you and if you know the average selling price of the homes in that area, it can help you in your financial decisions.
Therefore buying a home….
can be exhausting and thrilling, but remember not to drown yourselves by looking at too many homes.
The recommended number is 5 homes at least, but I do have clients who feels more assured viewing most of the listed homes before making a decision, so they usually carry along a checklist in a folder to indicate the individual homes they’ve viewed.
If you are also looking for a place to call home, but still undecided, feel free to email me at email@example.com, or whatsapp me. Looking forward to hearing more opinion from you!