Counting Chickens
Let's be Honest. The moment a contract is accepted, we start spending the money mentally. This is true for buyers, sellers, and agents alike. We all have bills to pay and maintain that "want" list we have been waiting to tackle.
From what I have learned in real estate, sports, and life is: it's not over till it's over.
How does one quickly apply this to real estate?
Buyers:
So, you have a contract, and now you think I need new furniture, a new truck to haul my stuff, etc. STOP! If you finance these things, it changes your lending ratio. Many of us live on the bubble. Changing your ratio can kill your deal. Now where are you going to put all that new furniture?
Sellers:
Great, a contract! We can use some of our rainy-day funds and pay down some debt or buy that much-needed item we have been holding off on. STOP! Has there been a home inspection? Most homes will come back with issues in a home inspection. If you are lucky, they will be minor. What happens, though, when they are not? Did you consider the $10,000+ in repairs that may be required to accommodate the buyer's financing or expectations? Here we are, just days away from closing, money has been spent in other directions, and now everything is falling apart.
Agents:
Whoo Hoo! I Made a sale. It's time to up my ride or get a new computer, wardrobe, etc. STOP! All those things are nice, but are they essential? No, I mean, are they ESSENTIAL? If you are saying yes, why have you put them off till now? Funny how our needs and wants get mixed up once we believe a paycheck is inevitable. What happens when that car or credit card payment comes due, but things unravel literally the day before closing?
Lesson:
Making quick decisions can not only put us in a bind but can sometimes result in a very unpleasant outcome. Everyone has heard the saying "Living the dream." I want to remind you that nightmares are still dreams. Be patient, wait for the deal to close, and ensure your nights are spent sleeping peacefully.
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