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February 17, 2017

Four Ways Your Emotions Can Lead to Mistakes When Buying Real Estate

Image 1: Four Ways Your Emotions Can Lead to Mistakes When Buying Real Estate

Buying a house is an investment. However, many buyers let their emotions get in the way when they become too excited over seeing their dream home. This can result in costly mistakes, which can affect your life and your finances.

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While it’s hard to think clearly when emotions are high, you have to remind yourself of the common mistakes buyers make. This will help you avoid them and keep an objective mind when buying. You may also want to seek the help of a Gloucester, MA real estate professional who can guide you along the way.

Mistake 1: Continuously Searching for a Better Deal

The ever-changing real estate market leads home buyers into thinking there will always be a better deal. However, experts believe that it’s not a brilliant move for buyers to always play the odds. No one can truly predict what can happen in the market. And continuously looking for a better deal may just lead to a never-ending search, making you miss good opportunities along the way. It’s best to research the value of homes in an area you’re targeting and ensure the property meets your needs and preferences.

Mistake 2: Getting Smitten

Love at first sight can make you commit a costly mistake when it comes to buying a house. Fight the urge to buy the first or second property you see if there’s a big possibility you’ll overpay and fail to resell at a good price. It’s advisable to evaluate at least five properties to compare and determine which one is best based on your situation.

Mistake 3: Overpaying

Beware of overpaying just to get that dream house. While it’s hard to say no to a house that provides every need and desire on your wish list, you still have to assess its market and resale value. Otherwise, you may overstretch your budget and sacrifice your other needs just to get it. You may have a dream house in your mind, but there’s no perfect property. The key here is finding a match to your lifestyle and financial capacity.

Mistake 4: Falling into the “Short Sale” Trap

Some buyers decide to buy a short sale or a foreclosure because they think they’re getting it at a more affordable price. However, you can only truly know the property’s value if you consider factors such as

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previous price, the current marketing situation, and the house’s features. Your needs should also come into play because the house should always fit your situation.

You can consider buying a house an achievement that can give you a lot of joy. However, it’s still a business transaction so you shouldn’t just follow your heart. Work with a real estate counselor by your side so you always have an objective mind that understands the market.

About Buyer’s Choice Realty: For the past 27 years, Buyer’s Choice Realty has been committed to homebuyers’ needs and desires. They are a team of consultants, counselors, and advocates, who make sure your needs are put first. They focus on your satisfaction to ensure that you’re getting the most value for your money.

Source: 5 Emotional Mistakes Made by Homebuyers, Bankrate.com 5 Mistakes to Avoid When Buying a New Home, Investopedia.com

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Four ways your emotions can lead to mistakes when buying real estate  

A never-ending search for a better deal, overpaying, and love at first sight are some of the mistakes real estate buyers in Gloucester, MA m...

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