Real Estate has always had its own acronyms, like PMI and APR. BUT NOW — there’s FOMO. You might recognize that one…and no, it’s not really a real estate term. It’s today’s lingo for Fear Of Missing Out, and it has the ability to significantly influence buying and selling situations, especially in today’s hot and fast real estate market.
If folks you know are all buying right now because prices are rising, you may feel tempted because you don’t want to miss out on the next home you want before it is out of your price range. Or maybe you find a home that you love, but the bidding war gets a bit out of hand, and it’s hard to assess the situation clearly because we become so emotionally invested. Or maybe you see people selling and making a tidy profit, so you want to maximize your sale price before the market cools again.
All these influences can lead to FOMO — which at the end of the day, can lead to both irrational or wise decisions.
In a fast paced market, here are a few simple tips to keep FOMO in check and make sure you are making a decision that is in your best interest.
- Know your goals. Does the decision you’re making support your short and long term goals? Don’t let pressure override your plan.
- Don’t try and time the market. Do things on your timetable and what is best for your personal situation.
- Find good partners. You need a smart, tested real estate agent that is looking out for your best interests, not worried about an immediate payday. You need a lender that is wise, nimble and has done this before (we know a good one we can recommend ;-).
The market is hot. The rates are generationally low. But don’t let these conditions get the best of you. Stay level headed, and no matter which direction you end up taking, you’ll enjoy the journey a lot more!
Thanks to Money.com for the great ideas for this article…you can read more here.