Experiencing buyer fatigue while searching for the perfect investment property is nothing new. In fact, it’s a relatively common hindrance.
Table of Contents
- What Is Buyer Fatigue?
- 5 Signs to Look Out for
- 5 Ways to Avoid Burning Out When Buying a Property
- Recommendations for First-Time Investors
- Final Thoughts
It doesn’t matter whether you’re a real estate professional or not; it takes time to go through all the options listed on the market. And when the investing process takes longer than you initially planned—especially when you don’t come across any good deals—it can trigger buyer fatigue.
It happens—and you’re not alone. With constant changes, a fluctuating economic climate, and a highly competitive market, it is often difficult for buyers to keep track of things. As a result, it may feel like you’re not actually doing anything useful or making any progress. You might even feel like you’re just wasting your precious time and money instead.
Again, don’t let them worry you—everyone goes through a similar situation. The key here is not to let such a modern-day hindrance get the best of you and your investment plans.
And that’s why today, we’ll get into the “psychological side” of being a home buyer. We’ll talk about how and why buyer fatigue occurs—and what you can do to deal with it.
What Is Buyer Fatigue?
As always, we’d like to start with the basics and try to get to the very core of what the phrase really means. Essentially, “buyer fatigue” is a synonym for exhaustion—just altered to fit into the real estate terminology.
Buyer fatigue is a sense of physical and mental exhaustion that a buyer can experience after countless days (or even months) of searching for a property and not finding anything.
How does it happen?
The thing is, such a type of stress does not just appear out of nowhere.
It slowly accumulates over time as you go through the process of viewing countless available properties, missing open-house dates, seeing several of your offers rejected, or failing to get in touch with real estate agents near you in time. And somewhere along the way, all the excitement about purchasing a new house simply disappears.
It might not sound so bad at a glance. However, once a potential buyer lets it get to them and starts thinking that they’ve seen everything, they might go for the option that requires the least work just so they can be done with it.
The latter often turns out to be a huge mistake. And here’s the tricky part:
If you are alone in the process, you won’t even notice that it’s turning into a problem until you make a mistake—like buying an overpriced investment property.
5 Signs to Look Out for
We want you to be more “self-aware” of the situation regarding your real estate investment journey—and, in a sense, your mental health. So, let’s talk about the signs that indicate that you might be experiencing buyer’s fatigue.
Here are the top five signs:
1. Intimidated by the Competition
It’s pretty common among beginner investors—especially when it comes to entering a hot real estate market.
For instance, imagine that you’re at an auction, ready to present your offer. Still, there are also 30 other investors behind you—some of them with less well-developed strategies and some with a lot more experience and financial stability than you.
It’s nothing to be afraid of, though. You can expect to encounter investors with different backgrounds—especially within popular real estate markets.
Here’s the issue:
After you’ve attended a few auctions and still returned home empty-handed, you may feel the fatigue setting in. It might even discourage you from attending more auctions or exploring real estate investing opportunities in the future.
Related: What Is a Deal Analyzer? A Complete Guide for Beginner Investors
2. Being “Ignored” by Agents
What you might perceive as “being ignored” by the real estate agents when looking for rental homes, for example, is an entirely normal and common thing.
You’re not getting ignored, though. It’s wrong timing and too much work on the agent’s side.
It’s pretty common that as soon as rental properties become available, real estate agents get swamped with messages and inquiries. In such situations, the quicker you are to refresh the listing, the better.
The “burnout” happens when you’ve reached out to several agents regarding a few different properties, with half of them not responding at all while the other half telling you that you’re a minute too late.
3. Thinking Prices Are Unrealistic
Now, here’s one burnout sign that is primarily related to the financial side of your investment endeavor.
While researching, you might find yourself stuck between numbers for too long. And here’s where the trouble begins.
You’ll come across several properties selling for a price that doesn’t match their condition or your budget. And as a result, you may be left wondering if there’s something wrong with your financial plans—and, ultimately, the seller of the property.
Buying a house is never simple—and it’s certainly not a sight for sore eyes to scroll through countless homes that are evidently overpriced.
Related: When Will Housing Prices Drop? Should You Wait Before Investing?
4. Changing the Criteria
As we’ve pointed out already, the situation in the real estate market changes constantly. It means you can’t afford to keep using the same search parameters as to when you first started.
We get that you are getting discouraged. Sometimes, there’s nothing worse than staring at a blank screen—and adapting your search criteria every week or so doesn’t help, either.
If this is what you’re struggling with right now, maybe it’s time to consider casting a wider net.
5. Trouble With Portals
The last thing that can cause stress and even reluctance to continue searching is not coming across the right portal or website.
The problem is not in the number of available websites for research. Quite the country; there are dozens of different sites with listings updated every week. However, the problem is in the information posted there—and its usefulness and relevance to you.
Some of them are unreliable, which could cause you to blame yourself for making the wrong decisions—and that should never be the case.
Related: The Top 5 Real Estate Investing Websites for Making Money in 2022
5 Ways to Avoid Burning Out When Buying a Property
Luckily, there’s a way for you to continue being a motivated buyer rather than going through a burnout—even while you’re searching for the ideal rental house.
If it’s been somewhat hard for you to concentrate on the research and investing in real estate in general, here are a few tips that will come in handy:
1. Hire a Professional
If you’ve got the budget, hiring a professional will help you eliminate all the unnecessary stress you’ve been feeling lately. They’ll help guide you through the process—and, in essence, do most of the work for you.
What we’re referring to here are property experts or property managers.
They’ll handle 90% of the business that’s related to the investment, as well as the day-to-day activities. Actually, the biggest advantage of going with this option is that they likely know the market better than you.
2. Stay Informed
There’s no way around it. We’ve mentioned it countless times—and we’ll say it again.
You must stay informed at all times.
The situation in the real estate market is known to change on a weekly basis. Home prices go up and down, rules and regulations on Airbnb change, and so do licensing requirements. They are all things to take note of along the way.
Also, keep track of newspaper articles discussing real estate issues, and don’t forget to take into account face-to-face communication with other investors.
The more curious you are, the fewer problems you will experience with deciding. In the beginning, all the information might seem overwhelming. But it’s all part of the job when it comes to real estate investing.
3. Act Quickly
If you’re looking to buy a house, there’s no room for hesitation or too much second-guessing.
The demand is now higher than ever—and potential investors should try to score a deal that sounds promising the first chance they get.
So, the minute you see a property that looks good and fits your budget and needs, make an offer to the seller.
4. Get Pre-approved
If you’re not relying on finances that come directly from your pocket, there’s a greater chance that you’ll experience burnout—financially speaking, that is.
Let’s be honest. We all worry (to some extent, anyway) if we’ll be able to finance our investment and make high returns.
Needless to say, potential buyers often find themselves in a position where they can’t close the deal due to their unstable financial situation.
If you’re applying for a mortgage, it’s always recommended that you get pre-approved. It will give you a sense of security, and you’ll be able to make a down payment without worrying about ending up penniless.
For the latest information on mortgage rates, go here.
5. Be Willing to Negotiate
Real estate investing requires you to act fast on deals that you deem profitable—but also to be ready to negotiate with real estate agents.
It is crucial to know that some deals will not be settled immediately. Also, communication will likely go back and forth a couple of times before you settle on the final price—and call it a successful investment.
So, don’t give up on the first obstacle that arises from the situation—especially if it is your first purchase.
Be determined, fight for a property you’re interested in, and use your negotiating skills to get there. In such a way, you’ll be even happier once you close the deal.
Is It Better to Wait for a Buyers Market?
“To buy—or not to buy?”
That’s a question that troubles many homeowners actively looking for properties.
However, the answer depends on the prevailing situation in the housing market. If there is no housing shortage and there is a large number of listings available, waiting for a while to find the best offer won’t be an issue.
But what if there’s a lack of properties? You should definitely listen to our advice and be sure to act fast.
Recommendations for First-Time Investors
Let’s be honest here—first-time investors are the category that needs investment advice the most. And that’s why we’ll now go through a few key tips that you should stick to once you step into the real estate market.
1. Establish a Plan
You are much more likely to experience burnout if you enter the real estate market without a well-developed investment plan.
It can seem like a lot of work, especially at the beginning of your career. Still, it’s essential to realize that careful planning is the foundation of all your other investment strategies.
And you can’t build anything without strong foundations.
2. Understand the Risks
Our next advice would be:
Make sure you understand the potential risks associated with the investment.
It includes a range of things—from financial stability and the market situation to unreliable parties you’ll work with along the way. And the best way to prepare to deal with these potential risks is to analyze them before they happen.
To become an expert at financial planning, you can read more by clicking here.
3. Be Tax-Efficient, Always
Since you’re just starting your career, you must be extremely cautious when it comes to paying your taxes.
Starting out small, you might start to think that tax efficiency isn’t all that important compared to the rest of your real estate investment journey. It is quite the contrary.
Tax efficiency is something you should concentrate on with all your future investments. If you neglect the taxes and invest in a non-efficient environment, you could end up paying a lot of money—and not making much profit.
That would be all on the topic of buyers fatigue real estate. We’ve explained how and why it occurs—and offered you some tips for your future investments.
Let’s just glance over what we’ve mentioned so far for good measure.
Buyer fatigue refers to the psychological exhaustion that results from countless unsuccessful investment endeavors. It’s not as uncommon as you might’ve assumed, and it can happen to anyone—no matter whether they’re a beginner or a professional.
Some of the signs include intimidation by the competition, missing out on opportunities, feeling defeated by the unrealistic prices, etc.
Luckily, you can do something about it.
You can hire a professional (if you can afford one, of course), act quickly on deals that seem profitable, and most importantly—stay informed.
It’s a lot of work—which is why you should take into consideration using Mashvisor’s tools and features to help you get through the process more easily. For example, our Real Estate Heatmap will help investors zero in on profitable properties with the highest rental income.
To learn more about Mashvisor’s real estate investment tools, sign up for a free trial today.