Walk into any popular bookstore and you will find, generally
between “biographies” and “religious” or “esoteric”, a section labeled
“self-help”.
And while some of the material can be gimmicky or weak,
every so often a book comes in that makes you take stand up and take notice.
“The Seven Habits of Highly Effective People” by Stephen R.
Covey is such a book.
25 million copies sold… 40 languages… 1,500,000 sales of the
audiobook alone…
Do I need to say more?
Chances are good that you’ve probably heard of it!
In this seminal work, Mr. Covey sums up over 25 years of
experience in business, family, and educational spheres and conveys to the
reader those seven practices common to the most successful individuals in their
fields.
In fact, Mr. Covey virtually guarantees effectiveness, which
he defines in terms of the production of maximum long-term beneficial results,
through working on these good habits.
Based on Stephen Covey’s seven points, I suggest the following
habits to any prospective home buyer, which will give you the edge on the
competition and set you up for a successful home purchase!
Spoiler alert:
If you still have a copy of the book on your shelf and you
haven’t got to reading it yet, I’m about to give you my personal take on the
titular seven habits.
So if you don’t want me to let the cat out of the bag, you
might want to take in all 432 pages before you jump in here!
Or not, it’s up to you!
By following these home buying tips, however, you will
increase your odds of success far beyond the average home buyer.
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
Want vs Need When Buying a Home
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
Understand How The Home Buying Process Works. 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
Enjoy The Home Buying 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!
This post is taken from the Maximum Exposure Real Estate blog and can be read on-line here..
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