Kick FOMO to the curb

Apr 20

With the rise of social media came a new term FOMO (fear of missing out) to describe the unpleasant feeling of missing out on a fun or different experience. But it’s not a new concept. People have been feeling this emotion for generations. Social media just expands awareness about what you might be missing out on.

FOMO in real estate

FOMO is a very real emotion, especially in real estate. And both buyers and sellers feel it. Whenever interest rates start to rise and inventory starts to drop buyers can easily start to panic. And they may rush into any home even if it doesn't work for them. Or others do the complete opposite and are never content with any home. They worry that there is a better one out there that they should buy instead. Sellers also experience FOMO when deciding to sell. They can make rash decisions that they regret.

Buying or selling a home is a big deal. So, it is normal to have big emotions surrounding this decision. There are certain fears that can arise, but they can all be navigated with some patience and knowledge.

Fear of market conditions

Most buyers are afraid of rising interest rates. They rush to purchase before they go even higher. They have FOMO on great rates and don't want to be locked into what seems to be a much higher rate than normal.

Buying a home is one of the biggest financial decisions you will make and rushing to purchase one to save on interest could hurt you in the long run. There are a few questions to ask yourself:

Do you have enough saved up for a down payment?
Do you know where you want to live?
Is your current job stable?

Even if you are financially ready to purchase a home, it doesn't mean you HAVE to buy. Don't force the purchase just to save on interest, make sure it is a home you can see yourself living in happily for several years.

Fear of missing out on buying a house

Some buyers feel that once all the current homes are sold they will be left with the scraps. They feel that if they don't get an offer on a house, they will never be a homeowner.

Don't worry! New homes come on the market all the time. Just because there isn’t a home right now for you, doesn’t mean that it will stay like that forever. This is a big purchase, so it is worth being patient for the right home. Your house is out there, trust the process and it will all come together.

Fear of missing the perfect home

Buyers feel the strain of a hot market. They often feel pressure to put an offer in after seeing a home for the first time. Once the dust settles and offers are submitted buyer's remorse can set in.

These buyers are still getting alerts for new homes in the area and can't help but continue to shop around. Even if the current home they find is great, there is still a fear of better homes out there. This may be true, but if you continue to act that way you will never buy a house and will always be searching. Find a house that fits you and make it into your home.

Fear of timing the market wrong

Sellers feel pressure to list their homes now, while the market is hot. They have FOMO of listing their home when they can sell it for top dollar. Selling a home can be a complicated process and it needs to make sense for your life.

If you are simply chasing the peak market and not planning for your specific needs it might not work out the way you want it to. Rushing into a sale can potentially bring in more money, but if you don't have a plan you can waste all the extra money trying to figure it out.

Fear of a better offer

Sellers get excited when they receive an offer for their home. And most offers have an expiration date and time, so the sellers need to make a timely decision. After the initial glee of an offer, doubts can creep in.

What if a better offer is out there? What if they are leaving money on the table? A current offer is typically the best one because the longer the home is on the market the less attractive it is to buyers. Negotiate with the current offer to get a deal you are both happy with. The last thing you want is to look back with regret on an offer you didn't take.