The Psychology Of Buying Or Selling A House
By Kurt Real Estate Nov 23, 2019
Buying or selling a house is an emotional process and emotions can often be blinding. Don’t make the same mistakes many people make when they decide to buy and/or sell.
Don’t ignore the big picture. Focusing solely on features can lead you astray. ‘”When people move to a better housing, they think they will be a lot happier overall,’ says Shige Oishi, a co-author of a 2010 study on the subject in Social Indicators Research. ‘When they actually move, however, their overall happiness does not often change because there are many trade-offs in moving’”(Matthew Kassel,Wall Street Journal).
Don’t overlook big expenses.Keep in mind extra costs such as closing costs, interest, taxes, insurance, and other miscellaneous maintenance or improvements to be done. Most people don’t think about the overhead costs and they get so excited about a home that they may end up committing to something that will squeeze them dry.
Don’t disregard the option of renting. Whilebuying a housemay make you feel like you’ve “made it,” sometimes purchasing isn’t necessarily the wisest choice based on income and expenses (SeeBuying vs Renting). Homeownership has added costs that renting doesn’t, which can cause undue stress. Younger buyers may not have the means for a down payment and may want to avoid the overhead costs.
Don’t “over-expect” your return. All too often people expect their house to sell for more than it’s worth. It is true that if the market is up and you’re selling at the right time you can get a great return on your investment as real estate will continually appreciate. However, you also have to be realistic about what the market value is. Survey the comps and educate yourself on the market so you aren’t overpricing your home and winding up with an expired listing.
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