How To Get Beyond Analysis Paralysis

A real estate purchase becomes an investment in our future so, of course, we want and need to analyze the steps to get to closing.....and beyond. But getting stuck in "Analysis Paralysis" will prevent any of us from moving forward to take advantage of what may be the largest investment(s) we ever make in our lives. In this blog I'll discuss how to get beyond Analysis Paralysis.

You're not alone. We are all guilty (or proud) of spending hours making our decisions? Here's some background from Healthline (https://www.healthline.com/health/mental-health/analysis-paralysis). Many of us postpone decisions and use analysis as an excuse. I understand as I've been guilty of over analyzing myself here in the Pittsburgh PA market! Any major purchase requires a review of the cost vs benefit, but it's especially important in a longer-term investment such as a home or investment property. But how do we get beyond analysis paralysis?

It's easy to get caught up in the excitement when we walk into a beautiful home...but is it right for us and our family? Planning can really help to avoid the impulse to buy that gorgeous home with the 2 acres of grass, in ground pool, 3 full baths and towering window walls. Wait! Think of mowing, washing windows, skimming the pool or cleaning that beautiful place. And are the schools right for your kids? Are we within commuting distance for work, recreation, shopping or family? Let's not forget the financial implications as well. If we do our homework prior to touring a future residence we will be prepared to only look at those which we have chosen based on our specific criteria. Walk in...decision is made if it feels just right. And there are a host of things for real estate investors to consider.

If it's your first (or tenth) investment property, does the property answer our questions and fit our financial goals for cash flow and long term returns? Are your operating costs still allowing for a profit? One model may not fit all situations, but building your model and learning how to approach an investment of a single family or multifamily property will also allow us to tour and decide if the property is right.

So, doing our homework up front before going out to look will shorten our decision process. If we know exactly what our minimum requirements are we will be so much better prepared to be selective in touring homes or properties. As the real estate markets rebound, we need to move quickly and stay ahead of the competition.

In my world of personal and commercial real estate, overthinking a purchase or an opportunity to sell often leads to missing out on opportunity. And in real estate, nice homes or investment properties don't last long on the market. Even in slower markets or higher interest rate times, there is plenty of competition out there looking at the same properties as you are. So when looking at a property, make a list of pros and cons, understand your wants vs needs, do the math, get your financials in order. If you've calculated and recalculated at least 3 times with positive results, chances are you're ready to take that next step. And you haven't stepped, whats stopping you? Why wait?

And if you're deciding when the best time to sell is, it's time to strategize, not over analyze. Your realtor/consultant can help you develop a plan to get your property on the market and present it in the best possible light for a quicker sale at an optimum price...and time the listing correctly to go on market. So how do you make decisions?

Spur of the moment? (That candy bar at the checkout...). Comparison of multiple options, reduced to 3 to pick from? (You and your significant other over coffee, then just flip a coin at the end...) Spreadsheets on each opportunity that are pages long? (I'm up all night ensuring the math works correctly and the spreadsheet makes the decision for me...) OR a combination of all three! Certainly seeking the assistance of Realtors, Accountants, Tax Advisors and Attorneys will benefit anyone making a major purchase. And selling has its ramifications as well so preparing to go on market will be better with advice from professionals.

Ok, so we prepared, did our homework, strategized and are ready to move forward. We found the perfect home or investment. DON'T WAIT! You may wake up tomorrow and call your Realtor to put in that offer after "we slept on it" and it's already sold. Real estate is funny that way. No two homes are the same and your dream may have gone to someone else. An investment may go the same route. While you may not be as emotionally attached to that triplex on First Street, it may be the best deal today and be gone tomorrow. Sure, others may be bidding on the same property, but at least take your shot to know you did your best. Realtors work 24X7 so preparing offers late at night is a known hazard in our industry. But we want you to be happy with your decision, too!

We must do our homework. We must prepare and analyze. We must be ready to make a decision. It's simple...don't get stuck in Analysis Paralysis and miss out!!!