Why Buying a Home is a Financial Decision, not an Emotional One

Why Buying a Home is a Financial Decision, not an Emotional One

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buy homeWhen buying their first home, it is normal for people to be excited. They imagine a happy family life waiting for them, and the many memories they will make. Not surprisingly, they also tend to let their emotions be the main deciding factor when choosing a home.

Here is the thing, though: doing that is a big mistake. If you want to come out ahead, and get the best house for your needs, you can’t afford to let feelings cloud your judgement.

The Dangers of Emotional Buying

People who emotionally invest themselves into a home before signing the contract put themselves at a disadvantage. They get tunnel vision, and end up overlooking crucial flaws that would have been deal breakers in normal circumstances. Often, they end up paying far more than necessary because they aren’t willing to walk away.

At the same time, emotions can make you miss out on great opportunities as well. You might immediately disqualify a good house just because it has an old, smelly carpet or a poor paint job – even though you can change those for a fraction of the property’s cost.

Some people are also hesitant to check out new house and land packages, as they feel that these aren’t “unique” or “personal” enough, even with the many customisation options available. Is it worth passing up great value for money and a home that is guaranteed to have no problems just for that?

How to Keep Calm and Rational

Your mindset should be that of a rational businessperson making a large financial transaction. Understand that right now, you are merely buying a place to live, and nothing more. There is plenty of time to turn it into a warm home full of happy memories later, but that is only after you move in.

Start by choosing a location, as this is the one thing you can’t change. Make sure to look at properties with convenient access to schools, work, grocery stores, and everything else you need. After that, weigh each house’s pros and cons independently. Be willing to compromise, but always look for the best deal.

Just by controlling your emotions during the home buying phase, you can easily prevent most of the mistakes that other people tend to make.