The Head and the Heart of Home Buying

Investing in a house is not just an investment of money or a client's good name in credit. It is a decision of the heart for most home buyers. We aren't assisting them with the transfer of a title and the assumption of a debt load as much as we are helping them make an emotional investment in their future. Real estate professionals should take this into account when advising their clients about real estate transactions. In some cases, we have to be the scissors of reason that cut through the warm fuzzies.

The average home buyer wants to play it cool, to get the best deal, to make sound investment decisions. Unfortunately, that part of them is often warring with the little voice saying, "Oh my GOD! I'm going to own my first/dream home! Can you believe it?!" which can turn off the voice saying, "But can I really afford the extra $122.45 a month that I'll be paying for the unusual inverted vaulted ceilings?"

However, one can't take a client's dreams and start jumping on them with the CSA-approved work boots of reality. A gentler approach is called for; one that acknowledges the client's wants vs. what the client can actually afford.

We don't want clients to buy houses that they can just barely afford; a lost job, an illness, a bad year... and the house is in foreclosure. No, we want them to choose a modest house according to their means and work up to the dream home that they are aspiring to. This not only is good for the client; it is good for us as well. Clients who have been guided to houses that are well within their ability to pay for often want the same guidance when they are ready to buy a house that is the next step up.

Even if the property is not exactly their dream home, a good approach is to emphasize how they can improve it to make the equity worth the investment and thus paving the way for their eventual attainment of the kind of place they want to buy. Focus on how they can be happy in the home that meets their financial needs. We want to make people enthusiastic about what they buy, even if it is a step towards their goal, rather than the goal itself.

Another set of emotions we need to be aware of are the sellers'. The home seller can sometimes be persuaded to come down a little on the price if they feel an emotional connection with the buyer to some degree. A good agent can offer tips on how to create that bond and possibly get some concessions. A congenial transaction makes everything easier for all concerned.

Honest real estate professionals urge buyers to use their head, not their heart, when considering a home. Sure, it might have vaulted ceilings and the most adorable little fishpond out back, but the bottom line is whether the client can afford these luxuries. However, despite all we can do to shake our buyers into a stone-cold-hearted approach, the warm fuzzies still need to be given their due as part of a real estate sale. We're just there to make sure they don't take over.

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