Buying or selling a house is usually the largest transaction of a lifetime for most of us. And on top of that, it involves all kinds of excruciating decisions and that most dreaded of all tasks: moving. That’s why the whole process is typically filled with so much anxiety and stress. But, really, it doesn’t have to be that way if you know what to do. So here’s our guide to managing stress when buying or selling a house in New Jersey.
Understanding the Causes
It really doesn’t matter whether we are considering the stress that accompanies buying or selling a house, in {market_city}, there are some major common causes of that stress. And understanding the causes is a first step toward avoiding it. Much of the stress is caused by three identifiable factors: the endowment effect, loss aversion, and irrational fear.
- The endowment effect involves buyers and sellers allowing their “subjective feelings to interfere while negotiating the price of the house. The seller may place too much value on this own house, while the buyer may feel that the price is too high even if the house is adequately priced. This results in stress for both parties as they are not getting an offer at the price they feel is right for them.”
- Loss aversion is a term used to describe the emotionally driven efforts of buyers and sellers to concentrate on avoiding loss rather than striving to get the best deal. “This loss aversion keeps the seller from holding on to a better price while a buyer may close the deal early just to avoid losing out to other buyers.”
- Irrational fear is also common among both buyers and sellers. Basically, it’s fear of the unknown, which “results in stress that interferes with their ability to negotiate for the best deal for the house.”
The key, then, to avoiding stress when buying or selling a house in New Jersey is to change your mindset. Get rid of negative thoughts, be patient, and hold out for the best deal. But there are indeed some practical steps you can take as well.
Stress Management for Buyers
Whether you’re buying or selling a house in New Jersey, there are some effective ways to head off and manage the stress. Let’s start with what buyers can do:
KNOW WHAT YOU WANT
If you know exactly what you want, you can narrow your search and save tons of effort and time (and even some money). Before you ever go house hunting, make a list of must-have features and like-to-have features. That way, you can narrow and shorten the search process, and you’ll also know exactly where you can and can’t be flexible.
GET PRE-APPROVED
Getting pre-approved for a mortgage loan can reduce stress significantly. You’ll know exactly how much you can borrow and, as a result, which homes to consider. You also won’t have to wonder if you can get financing once you’ve found a home you like. In addition, pre-approval will give you more negotiating leverage because you’ll be perceived as a serious buyer.
DON’T TAKE ON NEW DEBT AND SAVE
If you get pre-approved and then take on new debt by, say, buying a new car, your pre-approval agreement may be voided. So don’t take on new debt and continue to pay down your existing debt.
Also, keep saving so that you’ll have the down payment as well as money for the many other expenses. Nothing relieves stress like knowing you have enough money to do what you need to do.
BE FLEXIBLE
Rigidity is often the source of a lot of stress for home buyers. “While it’s good to have a list of must-haves,” the pros advise, “you should also keep in mind that there’s no such thing as the perfect house, not unless you have the means to design and build a custom home from the ground up. And while you shouldn’t compromise on important requirements, you need to be able to let go of the small things. Be flexible.”
USE A GOOD LOCAL AGENT
Perhaps most important for managing stress is having a good local real estate agent to guide you through the whole process, helping you avoid the financial pitfalls. “A local expert can guide you through the housing market, helping you find a home that matches your main criteria. They can make use of their personal and professional connections to open up listings that you otherwise might not have access to. They can also recommend adding certain contingencies, or conditions that should be met, on your purchase offer in order to protect your interests.”
Stress Management for Sellers
Selling a house in New Jersey involves some similar measures to manage stress. These include:
STARTING EARLY
“Some sellers will take several months, or even years, to prepare their home for a sale. So if you plan to put your home in the market, start early. Shop around for a listing agent, make obvious repairs, and have renovations made if necessary.”
BEING PREPARED TO WAIT
Although, the first handful of weeks your home is on the market is the critical period for getting an offer, typically, it takes several months for the entire process of selling a home to reach its conclusion. If you realize this and adjust your timetable expectations accordingly, you can avoid a lot of stress.
KEEPING EMOTIONS OUT OF IT
As we mentioned above, emotional responses are the source of a lot of stress for sellers. So do what experienced home sellers advise: approach “the negotiation table with a sense of detachment [to] help relieve stress. Selling a home is ultimately a business transaction, so don’t be easily discouraged or offended if things don’t go that way you want them to.”
HIRING A GOOD AGENT
Again, whether you’re buying or selling a house in New Jersey, hiring a good agent is a surefire way to reduce stress. Why? “A listing agent will help market your home and give it maximum exposure. They will also protect your interests during negotiations. Working with one will give you the guidance and support you need.”
The Value of a Good Agent
As you can see, then, there are both psychological tactics you can deploy and practical steps you can take to manage stress during the process of buying or selling a house in New Jersey. And a common element of stress management for both buying and selling is using an experienced local real estate agent. Really, it’s too big a risk not to use one.