Common Sense or Impulse When Buying a Home in London Ontario?

Published 03 May 16 12:02 PM | Ty Lacroix 

   Mark Twain wrote that humans have a lot of common sense, which is why they don’t use it! I was looking at the daily home sales in London Ontario (April 2016 a record month) and saw some homes in London sold at 110% - 125% over the asking price!


 It seems to me that home buyers either act on impulse or on self-discipline! Impulsive action is based on emotion (keeping up with the Jones’s or fear of loss) rather than common sense.


  Acting impulsively has consequences and for a buyer of real estate, that could mean, when it comes time to sell, the market either has decreased or not kept up with inflation, being house poor and in turn, having to become more frugal in the other areas of their life.


  In the heat of negotiating, counter offers and multiple offers, most buyers act impulsively, even their sales representative. In my article ‘Who wins, who loses?’ I cover a scenario of over paying for a home.


 How I think a buyer should act.


 Be prepared! First, know the facts, neighbourhood prices, your financial limitations and lifestyle and secondly, psychological preparation.


 Facts are the easy part and make sure they are facts and not opinions. Mentally being prepared to walk away takes courage and good old common sense.


 That being said, it seems I will never be wealthy as a real estate sales person if you believe this well know statement of salesmanship:


“You can do well by selling people what they need, but you can be rich by selling people what they want!”

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