Top 5 Reasons Why Buyers Don't Buy
Some buyers have reasons that they do not buy real estate that are very common to everyone and are many times not true. Most of these reasons are based on fear. Below are details that address these normal everyday reasons that buyers don't buy real estate and pass up opportunities that they could have benefited from.
Reason #1 Fear of New Things
Buyers don't by because they are fearful of things they have never done before. Buying a home appears to be an insurmountable task that they do not have the ability to perform. In fact, the buyer can hire a real estate agent to help them through the buying process and make this "huge task" much easier.
Reason #2 Not Educated
Buyers don't have the information they need to make an educated step forward. They may not know how to buy a house, when to buy a house, where to buy a house, or why to buy a house. Hopefully, if you're that kind of buyer, you'll spend time reading this website to acquaint yourself with these real estate matters. And for all other information you need, a good Realtor (R) can help answer those questions for you on a case by case basis.
Reason #3 No Money to Buy
They think that they do not have enough money to buy a house. They think the following wrong thoughts:
Buying a house can only be done so with cash.
A down payment on a house must be at least 50% of the price of the house.
Taxes are at least 15% of the value of the property.
If something breaks I do not know how to fix it?
All of these statements have at least one wrong piece of information coupled with a negative thought of lack. Oftentimes, buyers will let the wrong information that they hold to be true, keep them from buying a house. For instance, while it is good to put a large down payment amount up front, buyers can put down as little as 0% for a property. (20%, however, is a good rule to follow when buying a property. This does not make you pay Prime Mortgage Insurance a.k.a. PMI.)
Also, closing costs can be paid by sellers in transactions which will help Buyer's keep more money in their pocket.
Reason #4 Fear of the Unknown
They fear the unknown and always say, "What if..."
This is all a form of worry. Worry is a form of fear that usually stems from either the lack of information or someone not having confidence in themselves to make a big decision to act. You can always fill in the blank of, "What if..."
"What if I pay too much?"
"What if the house catches on fire?"
"What if I can't pay the monthly note?"
"What if the market crashes and I lose value in the property?"
"What if I can't get a loan?"
The list goes on forever. In actuality, if the buyer has a true need for housing or wants to generate cash from an investment property to help build up their financial future, the truth is that they really should buy using an experienced agent to help them.
Reason #5 Procrastination
They procrastinate.
Buyers who procrastinate may do it out of fear, laziness, or lack of motivation. They'll often use excuses to cover up this fault. They'll say to themselves that they'll wait until they have enough money to buy, when in actuality they do have the means to purchase a house. They also make up reasons to support their bad habits. For example, if they procrastinate from a lack of motivation, then they will say to themselves, "Oh buying a house will take up too much of my time anyway."
In summary, there are many reasons that people don't buy real estate, but common threads always tend to be be woven into their fabric of reason. They are:
- Fear
- Lack of Information
How can a buyer overcome these problem-makers and gather up enough courage to buy a property so that they can obtain a much needed home? They can start by learning. They can read web sites like this one on how to buy and why to buy. And they can get help from an experienced agent who will take the time to answer the many questions they have. By doing these two things the buyer will ultimately have enough truthful information to not only dispel their wrong misinformed thoughts but this new knowledge they receive will ultimately give them the confidence and motivation that they need to buy a house.
