A 20 year veteran of the New York City real estate scene, Scott Harris is the founder of Magnetic Real Estate, not to mention a seasoned agent with over $2 billion dollars in sales. In his new book, The Pursuit of Home: A Real Estate Guide to Achieving the American Dream, Scott takes the mystery out of how to buy your first home–from a financial and emotional perspective.
Why Buying Your First Home Feels Overwhelming
According to the National Association of Realtors, the typical age of first-time home buyers has risen to a historic high of 40-years old. These days, Scott explains, many people are waiting until later in life to buy their first home for a number of reasons.
Some factors are purely financial–homes are becoming less affordable and mortgage rates less predictable. But, as Scott can attest, there are other factors at play that aren’t always so obvious.
First, there’s the underlying fear of making a bad decision. Some people fear making expensive first-time homebuyer mistakes. Others simply want to avoid buyer’s remorse, something that over 50% of all home buyers grapple with to some extent.
Then of course, there’s the constant barrage of content on social media and reality TV that describes what the perfect home “should” look like. All these things combined is enough to send many people into a state that Scott describes as “paralysis by analysis.”
“There’s so much uncertainty and there’s so much doubt,” he explains. “It’s the biggest investment most people will ever make in their life. That is by definition an intimidating process.”
At a certain point, many potential buyers feel like making a decision is just too overwhelming. But the good news is that renting forever isn’t the only way to escape the pressure of buying your first home.
How to Buy Your First Home Without Losing Your Sanity
Over the course of his career, Scott has become an expert at anticipating the challenges of first-time buyers–and helping them overcome them.
“As a person who has done this for two decades, I wear my real estate broker hat about 10% of the time,” he says. “But 90% of the time I’m a coach, I’m a cheerleader, I’m a marriage therapist, and I’m a psychologist. I’m spending time helping people work through their fears about this process.”
In his USA Today bestseller, The Pursuit of Home, Scott shares the same wisdom he’s been using to help his own clients for 20 years. Here’s a sneak peek at some of his tips on how to buy your first home and what to expect along the way.
Know Where You Stand Financially
As a first-time home buyer, it’s tempting to jump start the process by hopping online and looking for homes to fall in love with. Unfortunately, this is a great way to set yourself up for a massive disappointment.
That’s why one of Scott’s biggest recommendations is to start by getting a clear picture of where you stand financially. If you’re married, sit down with your spouse and talk through questions like:
- What can we realistically afford?
- Do we want to have kids?
- Where do we want to live?
- Do we have family who would be willing to help?
- How much of a financial cushion do we want to have?
If you’re single, surround yourself with close family or friends who can help ask the questions that you might miss on your own. Additionally, don’t be afraid to start having conversations with financial professionals.
“I strongly recommend that you have a conversation with mortgage brokers, mortgage bankers to get pre-approval, but also don’t feel committed to them,” Scott advises.
While it’s not as much fun as daring to dream right out of the gate, early-stage preparation can save you a great deal of heartache in the long run. Sure, there’s the possibility that you’ll learn that you’re better off saving for a while longer.
But that’s better than losing a dream house you can afford, or worse, jumping into a decision you’ll regret. Scott believes that so many people end up with buyer’s remorse because they “spend more time planning their weekend vacation than they do planning the most important purchase of their life.”
Don’t let it happen to you!
Interview Several Real Estate Agents
In the excitement of purchasing their first home, over 70% of people end up hiring the first real estate agent they meet. Unfortunately, many don’t discover that their agent isn’t the right fit until further down the road.
“I really recommend you interview more than one person,” Scott says. “They’re gonna give you different perspectives and frankly, you’re gonna meet people that you feel more comfortable with.”
Ideally, you should try to look for an agent who takes the time to understand more than just when you want to buy or what your downpayment will look like. Try to find one who seems genuinely interested in understanding what you want to achieve and in helping you find it.
If you’re buying a home with your spouse, it’s also important to find an agent who listens and communicates in a way that makes both of you feel comfortable. After each interview, discuss questions like:
- Did I feel seen?
- Did I feel heard?
- Did I feel understood?
- Does this person take us seriously?
“One of the most valuable things you’re gonna find in a good agent is that they believe in you,” Scott advises. Down the line, when things get tough, having someone who has faith in your goals can be invaluable.
Prepare for Feelings
Scott walks clients through things like “opposite mode,” which happens when buyers can only see what they don’t like about a potential home.
“This happens to everyone. As I see it, it’s the chance for your brain to catch up with your heart,” Scott says. “It’s often because you think you know what you like and you actually like something different.”
He also discusses how common it is to feel differently than expected when you find out your offer has been accepted. Rather than jump on the offer anyway, Scott advises listening to your feelings and using them as feedback.
“What I say to people is, you have to slow down, give yourself some space to actually feel whatever the feels are. Then you’ll have much more information about what you really do like.”
Get More Home-Buying Tips from Scott Harris
Whether you’re planning to buy your first home in a few months or a few years, The Pursuit of Home is definitely worth reading. While Scott’s book is packed with plenty of practical financial tips, he also discusses the human side of the home-buyer’s journey.
He’ll walk you through every step in a way that will allow you and your family to approach the real estate market with less fear and more self-awareness.
Want even more great tips on how to build a life you love? Be sure to check out Andy’s new book, Own Your Time. It breaks down ten financial steps you can take to build a life focused on your family, not the corporate grind.
Leave a Reply