When you’re preparing to buy a house in Grand Rapids, you can almost feel the heat. The market is strong, and houses are getting bought up quickly. After searching for a few weeks (or months), the pressure to JUST FIND SOMETHING builds and builds.
However, panic and fear are your enemies. Don’t trust them!
Whether you’re looking to find your own house or an investment property, panic and fear will drive you to bad decisions. When you feel negative pressure, it’s easy to overpay for a property, buy in the wrong area, sacrifice your top housing priorities, or ignore inspection red flags.
Since purchasing a house is such a big decision, these momentary errors in judgment can have long-term negative consequences on your life (and your bank account). So how do we avoid these crushing mistakes?
1. Determine your goals (and priorities) in advance.
We would all love a giant house in the perfect neighborhood, with great schools, low crime, and quick access to our favorite attractions and stores. However, since few of us have access to unlimited funds, we often need to prioritize.
What is most important to you and your family? Is it crucial for you to have at least 3 bedrooms? Do you want to be in a particular school district? Do you want to make sure your mortgage doesn’t exceed X per month?
Determine your top priority, and possibly 1-2 other ‘make or break’ conditions. Don’t budge on these. If it is extremely important for you to buy a house in Grand Rapids with 3 bedrooms and a back yard, stick to it.
You may have to compromise on other things, such as home style, kitchen updates, or commute times. However, if you make sure your top needs are met, you will be happier with your purchase.
2. Know when to walk away.
It’s easy to fall in love with a home. If you’re looking to buy a house in Grand Rapids, and you’ve found one that meets your most important criteria, you may feel the need to jump on it, no matter what.
However, most homes have issues. Perhaps the inspection reveals a major required repair, or a bidding war for the property drives the price up.
If you are ready to tackle a fixer upper, and understand the cost and time commitment, go ahead. If the price of the house jumps, and it still fits within your budget, you will likely be OK.
However, don’t put yourself in a bad situation because you’re afraid to lose the house. Know how much you can handle, in terms of money, time, and skill. If you accept an bloated mortgage payment, your bank account will feel it. If you take on massive repairs without understanding them, you could lose a lot of money (or endanger yourself by doing it cheaply).
It’s better to wait for the right opportunity than to dive headfirst into the wrong one. Know when to walk away!
3. Step back, and stay logical.
Buying a house can be very emotional. Homes are a huge investment, both financially and mentally. It’s very easy to get swept up in the moment, and make rash decisions.
If you are feeling pressured, rushed, or worried, step back. Take whatever time you need to collect yourself, and then approach the decision logically. Making choices when you are mad, scared, or stressed usually leads to poor results. Don’t make that mistake.
While no house is perfect, and you’ll likely have to compromise somewhere, don’t buy out of fear or panic. Look at your options as logically as possible, and remember that more houses will come on the market. Thousands of homes are bought and sold every day. You will find the right one!