In a hot market like the one Boulder County continues to experience, it can be tempting, as a prospective home buyer, to slice, dice and dissect housing market statistics. After all, there is an abundance of variables to study to help a home buyer make the best next move in the real estate market. But sometimes, and sadly, we real estate agents witness prospective home buyers conducting far too much analyzing. We call this Analysis Paralysis or the state of over thinking a situation or decision up to the point that no action is ever taken.
For many prospective home buyers, the decision making process can easily be an overwhelming task. And we get it. Certainly there are several factors to consider including interest rates, closing costs, what kind of loan to take, how much down payment you can afford, not to mention, where is the best location to purchase and ultimately live. While all of these are important factors, if you can identify with the state of Analysis Paralysis, I would encourage you to simplify the process by outlining your goals and then --- make a decision. Even if the decision is to not buy a home, that is a perfectly reasonable decision. No one wants to see you taking on a home if you are not ready!
So how exactly does one simplify the process? I have outlined four actions that will help you get out of Analysis Paralysis mode.
- Take Stock of What You Know: if you are stuck in a state of Analysis Paralysis, it probably means you know a lot already! Write down a list of the facts you have learned and then turn those facts into questions. For example, "Fact: We are qualified for a $400,000 loan. Question: Do I like the homes I am seeing at that price point in the neighborhoods I like?" As you proceed, sit down and answer the questions honestly. Include your partner or spouse if he or she needs to be a part of this decision too.
- Be Realistic: We all have to start somewhere. Your next home does not have to be your "Forever Home", so pick a few non-negotiable times and then be flexible on the others. For example, if you have an electric car, and you have to have a garage with an electric outlet to plug into at night, then a garage with electricity is non-negotiable for you. Or if you have large dogs, you probably need a yard with a fence. Pick and choose what is non-negotiable for you and your family and then consider the rest of your wish list, optional features or nice to haves.
- Give Up Your Zillow Habit: Unless you are looking at a listing from the Multiple Listing Service (MLS) (which only a licensed real estate agents can access fully), the data you are viewing could be outdated and therefore misleading. For example, property search results from Zillow, Trulia or others like these real estate search engines may already be under contract or no longer on the market. Your agent can set up real time listing searches for you so that you aren't wasting your valuable time. Our blog article here gives you more reasons to do this.
- Overestimate Your Costs: In this market it is not unusual for buyers to offer over asking price by 5% to 20%. Prepare for this scenario in advance and expect a bidding war by looking at home slightly below your pre-approved price point. The good news is that once you close, you have already probably made up those thousands of dollars in the appreciation that occurred in the 4 to 6 weeks you were under contract!
If you have been following Louisville Realty Associates on social media you will know that we provide regular snapshots of East Boulder County. While it is easy to get lost in the multitude of statistics available for everyone to look at online, we always keep our data sweet and simple. Check out East Boulder Town market statistics here. At Louisville Realty Associates, we have the experience, energy and depth of knowledge to help you list your home for the best price. You can reach us anytime at email@example.com.
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