Buying a house in Colorado may be a fantasy of an aspiration, but this endeavor may instantly transition from being an experience to becoming an ordeal if one falls prey to what has come to be known as that “surprise” or, more aptly, that “Choice Overload.” In an environment that thrives in diversity, to what extent does one benefit when faced with an array of elements, such as educational and trail access, that may, in reality, become an inhibiting factor in their choice?
At Dwell Residential, we often see eager buyers get sidetracked by the “Paradox of Choice,” a concept popularized by Barry Schwartz. The theory is simple but profound: while we think more choice leads to better results, it often leads to anxiety, regret, and “analysis paralysis”. This guide will help you navigate the Centennial State’s real estate landscape using proven strategies to simplify your search and get you into your new home faster when buying a house in Colorado.
1. Understand the Paradox of Choice in Real Estate
When you’re beginning the process of buying a house in Colorado, it can be very tempting to want to view every single home that is for sale, from Fort Collins to Castle Rock. There may be parts of your heart that believe that it is necessary for you to have many options among which to choose your home. Science, however, reveals that giving people too many options can make them feel overwhelmed with anxiety. This is a common challenge people face when buying a house in Colorado.
In the Colorado real estate community, this can be seen in “the need to just look at one more houses or condos”. There are many possible harmful consequences of this kind of thought pattern:
- Indecision and Paralysis: The customers become so confused that they come to a point where they feel paralyzed and indecisive.
- Post- Purchase Regret: These consumers will also show a greater state of post-purchase regret or dissatisfaction with a purchase following a choice.
- Comparison Trap: Often people can’t shake the impression that what wasn’t chosen was the better alternative.
- Mental Fatigue: After poring over that many properties over several weeks, your mind will begin to circle around each house in an attempt to remember each one individually.
2. Why More Is Actually Less in the High Country
Most likely, you face an insane number of choices every day, from the cereal aisle to shopping for jeans. We’re talking about both big and small purchases in your life. When there are so many options, it’s easy to end up doing nothing as the “default choice”—a feeling many people recognize when buying a house in Colorado.
When it comes to house hunting, you do want to have a healthy inventory of listings to view. However, thinking “seeing more is better” can actually sidetrack your home search. More choice can cause confusion, second-guessing, and just being overwhelmed. Plus, it’s just harder to narrow down your choices and start to eliminate homes when you have viewed way too many while buying a house in Colorado
3. Research Before Becoming a “Serious” Buyer
The lesson to learn here is that the best way to overcome choice overload is to educate oneself prior to the stakes being this high. Before you secure an agent and begin touring homes, you want to spend time as an observer of the market.
Market Education: Educate yourself regarding the market price, location, and features of your local market.
Low-Pressure Exploration: Go to Open Houses. Search the Internet. Ask trusted and reliable friends how they rated their experience in purchasing a home.
Realistic Expectations: This way, your expectations are realistic and you’ll be more confident when you do become a serious buyer with an agent.
Set a Deadline: Do your best to keep this time productive and perhaps even with a deadline, so you don’t end up still “looking” two years down the road.
4. Define Your Colorado Lifestyle Needs vs. Wants
Living in Colorado is all about lifestyle choices. Whether it’s the fast-paced life of the cities or the peaceful rhythm of mountain towns, you need to decide what your needs, wants, and even deal-breakers are when buying a house in Colorado.
Start with Lifestyle: In our view, it would be much better to start with lifestyle and make the list from that point.
Focus Your Energy: Focus your time and energy on what matters to you.
The List is Your Filter: A list can help you develop the skill of narrowing down your choices.
5. Stick to Your Budget to Avoid Confusion
When buying a house in Colorado, it is vital to stick with your budget and price range. You’ll increase your doubt, confusion, and dissatisfaction if you start to see homes outside your price range—lower or higher. By doing this, you’re just adding more choices that aren’t good ones for you. If you’ve done your research, looking outside your budget is an unnecessary waste of energy and time once you’re a serious buyer.
6. Compare Apples to Apples
It’s not a good idea to compare homes that are in two very different locations—it will only lead to “analysis paralysis”! For example, a home in the suburbs is most likely going to be bigger and possibly newer than a similarly priced home in a more urban area. To avoid this:
- Narrow Your Location: First, narrow your location by deciding what lifestyle you want.
- Compare Within Locations: If you decide to be open to other locations, compare similar homes within the specific location.
The Power of “Enough” and the Elimination Strategy
Just remember, “enough choices” means not a lot. Having too many choices can be daunting, so you can aim to have “enough” choices to feel confident and satisfied.
Work with Your Agent: Work with your agent so that you view “enough” homes that meet your list’s criteria.
Eliminate as You Go: When you view a home, it’s either a “yes” or a “no”. Eliminate homes immediately so you can keep your selection to two or three homes.
Don’t Keep “Maybes”: Don’t “keep it in the running” just in case, or you’ll end up with too many to whittle down.
Pick Your Favorite: Ask yourself what home you like better—the one you are in right now or the ones you just saw—and pick your favorite of the day.
Managing the Fear of Missing Out (FOMO)
Don’t worry you’re missing out. Your agent is there to help pare down the number of homes to view and keep you focused. They can explain why certain homes weren’t on the list—perhaps they don’t match your criteria, are out of price range, or have a deal breaker.
Furthermore, avoid becoming an “MLS Junkie”. It’s hard not to search the internet to see what’s been newly listed, but you must keep it in check. Don’t become obsessed or anxious about every new listing and second-guess your progress.
Learn to Embrace “Good Enough”
While everyone wants to find a home they love, no home is going to have everything on your list and still meet your budget. Accept that your decision on a home may come with some sacrifice of a “want” on your list. Making a choice does mean you’ll be passing up opportunities to look at future listings, but if you don’t choose, you’ll be stuck “looking forever” when buying a house in Colorado.
FAQ: Buying a House in Colorado
How do I avoid “Choice Overload” during my search?
Limit the number of homes you view by strictly adhering to your “Needs vs. Wants” list and your budget. Use the “yes/no” elimination strategy to keep your top choices to a maximum of three.
What if my budget limits my choices?
Sometimes the market itself will limit your choices, but this can actually be helpful in preventing overwhelm. It forces you to focus on what is truly available and move toward a decision.
How do I know if I’ve seen “enough” homes?
“Enough,” of course, is subjective, but it is the point at which you see enough properties with your own set of criteria that you can get a good feeling for local market value without being overwhelmed by the numbers
Should I keep looking just in case a better house is listed tomorrow?
No. If you find a home that meets your criteria and budget, proceed. They often wait for the perfect home that will never be listed in the future, thus never acting.
Where can I learn more about the psychology of making these choices?
We highly recommend reading “The Paradox of Choice” by Barry Schwartz. You can find it on Amazon (rel=”nofollow”).
Conclusion
Being able to manage the complexities of buying a home in the state of Colorado doesn’t have to leave one feeling exhausted. By embracing the paradox of choice and working towards strategies that involve pre-home purchase education, serious budgeting, and eliminating, having a home that you love doesn’t have to include an exhausted mind. It’s not necessary to look over every home in the state; finding the home that’s relevant to your life is the goal when buying a house in Colorado.
“Our Dirty Little Secrets for Buying a Home” series continues with this article, and next week, “How to Buying a House in Colorado with Student Loan Debt,” will take on another hot topic for new home buyers.
Would you like me to help you create your initial “Needs, Wants, and Deal Breakers” list to start your Colorado real estate search?
