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How the Fear of Missing Out Impacts Real Estate Decisions
The fear of missing out (FOMO) is real. Have you ever been invited to a party and you really didn’t want to go, but the thought of missing out on the action was enough to get you off the couch? What about a life changing decision? Believe it or not, FOMO can, and is, influencing people’s decisions to buy, sell and even refinance homes. FOMO can hit hard, and the home buying market has seen this first hand over the last year.
With housing demands still on the rise, and the pandemic mentality fresh in our minds, buyers and sellers have been eager to make a change. Because of this, FOMO has influenced many people’s home buying decisions. Take these two situations as examples of how:
- A successful young business woman has been looking off-and-on at homes for sale for a couple years now. Then the pandemic hits, and housing inventory starts to dwindle. She sees her friends buying homes and taking the plunge, so she get’s more serious about finding a home. She finds a home she loves, but ends up paying $40,000 more than she would have paid for when she started looking two years prior.
- A family of four has been debating getting a new home for a while. They see their neighbors listing left and right, and feel like they better join in now or they will miss the opportunity to sell at a high amount. So, they list their home, but the problem is there’s so much competition in their neighborhood they don’t see the ROI like their neighbors five months prior did when they sold.
FOMO and Making Smart Decisions
Right now, the number of houses available to consumers looking to buy is at an all time low. This means competition is hot. Bidding wars have become the norm, and according to a leading brokerage, the average home is selling in just 18 days!
The current state of the housing market is a big influence on the fear of missing out for buyers and sellers. The idea of not acting now and losing the benefits others are seeing is very strong. But in the midst of this added pressure, the key is acting responsibly when it comes to making a decision. Here are some good tips for not letting FOMO take over:
- Your Goals Should Be the Focus
What are you looking for out of a purchase or sale? What is the long-term goal for your business or family? Take time to write these down and refer back them before making any decision.
- Don’t Try to Predict the Housing Market
Everyone’s situation is unique. There are times when it’s ideal to sell or buy based on personal preferences, and other times when it is not. Some people try to wait the market out, yet others jump to make a decision too quick. The bottom-line is—focus on your goals and what works for you when the external factors aren’t an influence.
- You Must Partner with the Right People
Now’s the time to have the right advocates in your corner. With the competition fiercer than ever, you need the perfect fit in a real estate agent, lender, attorney and title company to advise and help you make the best decisions to achieve your goals. At Velocity Title, our in-house attorney and title experts know what it takes to keep you moving forward. Using the latest in technology and industry insights, our goal is to ensure your unique needs are met, and your expectations are exceeded. To learn more about Velocity Title, click here, or contact us today.