Thursday, May 01, 2008

Buying home during turbulent times (3): Ten mistakes to avoid



Part 1: Buying home during turbulent times: Ten mistakes to avoid
Part 2: Buying home during turbulent times (2): Ten mistakes to avoid
Part 3: Buying home during turbulent times (3): Ten mistakes to avoid
Part 4: Buying home during turbulent times (4): Ten mistakes to avoid
Part 5: Buying home during turbulent times (5): Ten mistakes to avoid


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5. Don't believe seller/ agent's bluff. Savvy sellers know how to create sense of urgency. You will be told despite current economy conditions, another potential buyer is rushing to close this deal.

As buyer, the one who pay money, remember, you make the call. Don't let the seller dictate your pace. When you are in control of the pace of negotiation, you get the fair price you want. When you cannot dictate negotiation pace, most likely this is not a good deal. Forget about the deal.

What if the "bluff" is for real, you ask. I once read "deal of a life time comes every two weeks" from either Robert Kiyosaki or Dolf De Roo. We should not worry about losing one deal. If you are not in a desperate position you have time to explore and compare. See hundred places, shortlist a few "dream home" and negotiate at the same time.

This leads to the next point...

6. You must see more properties and compare

When you have seen sufficient alternatives, you will learn there are many ways to imagine how a dream home can be. It leads to abundance mentality. You will know there are many places as good as the one you are seeing now. There are many places you can design to be your dream home. There are many ways to design most places to become your dream home. You will not stuck your mind to just-this-one.

Once you are exposed to many possibilities of a dream home, abundance mentality kick in. With abundance mentality instead of desperate or just-this-one mentality, you will be more equipped to negotiate. Savvy sellers will sense your solid position (on many options available to you, sensible financial choices, etc.) and become more willing to back down on price.

I was the one reluctant to explore more houses and condominiums offered in the market. I just wanted to get a good place and quickly got it done. We checked less than a dozen of places. The moment we found one good place within, though stretched to the limit of, our budget, we became desperate for this particular place. We were in scarcity mentally. We did not want to lose this deal. The seller's agent held firmed of the property's price (at its ever peak).


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Part 1: Buying home during turbulent times: Ten mistakes to avoid
Part 2: Buying home during turbulent times: Ten mistakes to avoid
Part 3: Buying home during turbulent times (3): Ten mistakes to avoid
Part 4: Buying home during turbulent times (4): Ten mistakes to avoid
Part 5: Buying home during turbulent times (5): Ten mistakes to avoid