Many people think that closing a real estate deal is a piece of cake. If you also think along the same line then you are clearly in the wrong. Closing a real estate deal may be easy but successfully closing the deal according to the terms that are ideal for you is stressful. Even under ideal circumstances, closing a real estate deal taxes the mind.
Causes of Real-Estate Transaction Stress
In order to combat stress you need to understand the causes of stress you will face during a real estate transaction. Some experts say that buyers and sellers experience stress due to Endowment Effect, Loss Aversion, and Irrational Fear during the real estate transaction.
a. Endowment Effect means that the buyer and seller allow their subjective feelings to interfere while negotiating the price of the house. The seller may place too much value on his own house, while the buyer may feel that the price is too high even if the house is adequately priced. This results in stress for both parties as they are not getting offers at the price they feel is right for them.
b. Another cause of stress during the real estate transaction is Loss Aversion. The term Loss Aversion means that the buyer and seller have strong inclination to avoid loss rather than get the best deal. This loss aversion keeps the seller from holding on to a better price. While a buyer may close the deal early, just to avoid losing out to other buyers.
c. Many buyers and sellers also have Irrational Fear during the real estate transaction. This fear of the unknown results in stress that interferes with their ability to negotiate for the best deal for the house.
Detoxify your Stress for the Best Deal
You need to change your mindset to combat the stress that arises during real estate transactions. Both parties have to diminish and reduce the negative thought process and look at the real estate process. You have to research the market price and value of the house to ensure that you are not losing out in obtaining the best deal.
Furthermore, you should also be patient during the real estate transaction and not just grab any offer that comes your way. Once you have determined the right value and price of the house you should stick to your stance. You should not go below the minimum price during the real estate negotiation process to get the best possible deal.