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Habit #1 – Be Proactive: Get pre-approved For Your Bank Loan
Mr. Covey’s first point deals with getting into the ongoing practice of being on the front foot, rather than living in a passive and reactive mode; not waiting for it all to happen for you but taking the first step.
If you are looking to buy, the foremost proactive task is to get pre-approval for your mortgage. Approach your bank and find out what is the amount and terms for which you can be approved, based on your current income (and expenses).
This is going to put you in the driver’s seat for the whole process – you will have a good idea of what you can afford, which in turn informs all your house-hunting and decision-making from here on out. Make sure you understand the difference between getting pre-approved and pre-qualified. Being pre-approved vs pre-qualified for a mortgage is not the same. Home sellers will want pre-approval! This will be the first meaningful task in preparing to buy a home.
If you’ve been dreaming about that ideal living space, in being proactive you will have begun your journey toward it!
“If I really want to improve my situation, I can work on the one thing over which I have control – myself.”
― Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change
Habit #2 – Begin With The End In Mind: Determine what you want and what you need
Next, readers of the book are encouraged to envision a clear destination.
Our imagination is a powerful thing, and it’s useful for more than just coming up with ways to spend this week’s Powerball, or making up pranks targeted at friends, colleagues, and loved ones. We can use it to develop a vision of our future for us to work towards.
When it comes to buying a house, you can begin to envision what you want.
Which area would you like to live in? What house style interests you? Garden or no garden?
Moreover, ask yourself what you need: how many bedrooms do you require for your current and future family size? Do you need space for the number of vehicles you own? Space for all your appliances? Maybe there are some specific desires surrounding the type of neighborhood you want?
Build a picture of the desired end towards which you can begin to move.
“Start with the end in mind.”
― Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change
Habit #3 – Put First Things First: Take a reality check
Now that you have identified what your end goal is, and also what your budget will allow, you can begin to put first things first.
For house hunting, this entails getting a realistic idea of what’s out there and available.
Using technology this can be done from the comfort of your own home.
Jump online and you can quickly get an idea of how the market is looking. Some sites even offer virtual guided tours of potential homes.
At this stage, you could even begin to drive through your desired neighborhood on a Sunday open house and begin to see for yourself what’s on the market.
Nothing beats first-hand experience to get a feel for what is realistic!
Using these methods you will build a solid profile of what your ideal spot could look like.
Some buyers become disappointed or frustrated by leaving out this step, having a mentality which says “I want it all right now”, setting the bar for their purchase way too high.
They want their perfect dream home for a low, low price.
Indeed, the overarching theme of Mr. Covey’s book is how we set ourselves up for failure to reach the desired result not primarily because of external forces, but because of our own perceptions.
Taking a reality check at this stage will equip you to engage with the market.
“To change ourselves effectively, we first had to change our perceptions.”
― Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change
Habit #4 – Think Win-Win: Aim high but be flexible
Most buyers have an idea in their head of “The One Home.”
This “One Home” is the home I’m supposed to encounter that will make me deliriously happy by checking all my requirements and coming in way under my budget.
“It’s out there for me and I just have to find it.”
Your reality check in the previous point will probably already have shown you that “The One Home” is a unicorn.
There’s no such thing!
However, this point right here will help you to see that even if the “One Home” does not exist, it is still possible to be effective in reaching the desired result: a home that will give you the optimum long-term benefit and satisfaction for your investment.
Thinking “Win-Win” is about finding solutions that work for all parties involved – for example, you can get a great house at the right price without fleecing the seller.
To find your “Win-Win” property, as opposed to the unicorn, will require flexibility and negotiation. You may have to compromise on some of your nice-to-haves on the property in order to secure the best possible arrangement.
“Win-Win” thinking says, for example: “Ok, I wanted a house that was ready to move into right away, but here is a decent house in a good area which can be turned into a great house with some renovation, and I’ll still come in under budget.”
Or, “Look, I’m spending a fraction more than I had originally planned, but this house checks all the boxes and will give us space into which we can grow.”
Be flexible and find your Win-Win!
“Happiness, like unhappiness, is a proactive choice.”
― Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change
Habit #5 – Seek First To Understand, Then To Be Understood: Understand the process of buying and selling
What a great fifth habit to have under your belt: Understand, before being understood.
What makes Mr. Covey’s philosophies so good is that they deal with improving one’s character, not just quick fixes that only scratch the surface of the issue!
When it comes to buying a house, what you need to understand is the process of buying and selling.
You don’t have to have a degree, or train to be a real estate agent yourself, but it will help to find all the vital information.
Don’t be scared to ask questions! Understanding what to do before buying a home is vital!
After all, buying a home is one of the biggest investments a person can make!
If you have a question about anything from paperwork to repayments to closing dates to mortgages, just ask!
A good person to ask is your local real estate agents – if they aren’t equipped to answer your question directly, they can put you in touch with the necessary professionals!
According to Mr Covey, when we try to offer advice, or assert our own desires, or bring a solution, without first understanding the problem, we set ourselves up to be ineffective.
“Most people do not listen with the intent to understand; they listen with the intent to reply.”
― Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change
Habit #6 – Synergize: Empower yourself with the right real estate team
There are those who have more experience than us in any given area.
Rather than re-invent the wheel for ourselves, we can benefit from the learning and experience of others.
We already saw in the last point some of the advantages of being able to ask a good real estate agent for answers to some of the fundamental questions.
Sure, you could do it yourself!
You might conceivably even save some money by doing it yourself!
However, by and large, when you weigh the benefit in terms of your investment of time, and the avoidance of unexpected hassles, generally speaking, making use of these specialists in their fields can pay for itself, so to speak, by saving you time as well as headaches.
Your small team could involve a competent real estate agent, a qualified conveyancing attorney, a reputable mortgage broker and the best home inspector available.
You could also involve a trusted friend or family member who can look at the prospective property with you and point out pro’s and con’s you may have missed.
In addition, give weight to what your spouse or immediate family has to say – after all, they will be living there too!
“When the trust account is high, communication is easy, instant, and effective.”
― Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change
Habit #7 – Sharpen The Saw: Enjoy learning from the entire experience
Every first-time buyer can relate to the rush of making their first purchase.
When the offer is accepted, a celebratory notification is sent to family and friends, loaded with party emoticons.
When the mortgage is approved, we crack open the champagne!
Going through the process can involve ups and downs, but when you reach your goal it is worth it.
Buying shouldn’t be something to endure but something to enjoy.
And, even when there are those disappointments that might come along the way, you are learning and growing from the entire experience.
You come out on the other side of the process with broader shoulders and more life experience. When things are thought through carefully there is rarely any home buying disappointment.
So, if you’re ready, jump in!
Be proactive, have the end in mind, stay grounded in reality, think “Win-Win”, increase your understanding, work in team, and be learning and growing.
You will be an effective home buyer!
And of course, be sure to stock up on a bottle of your favorite Champagne!
“To learn and not to do is really not to learn. To know and not to do is really not to know.”
― Stephen R. Covey, The 7 Habits of Highly Effective People: Powerful Lessons in Personal ChangeHopefully, you have enjoyed these tips for becoming a more effective home buyer. Put the advice to good use and you will be well on your way to enjoying the fruits of your labor.
Written by Bill Gassett – See the full article at:
