Acquisition Vs. Ownership

We walk onto a car lot, and the first vehicle to which we gravitate is the most attractive, the most powerful, the biggest, or the most luxurious.  We set out to buy new household appliances, and the ones that catch our eye are the shiniest, the biggest, or the ones with the most gadgets.  The same draw applies to our purchase of new shoes, new cell phones, new computers, and so on.  It is understandable, then, that most home buyers look first at the most attractive home, with the amenities that appeal to us, rather than the practical, logical choice.

Neuroscientist Antonio Damasio suggests that we, indeed, are living an illusion of conscious choice, since our subconscious directs our actions first, and the emotions stem from our subconscious.  In other words, for the most part, we make emotional decisions and then, perhaps, choose to justify them with a logical argument.

But emotional choice when buying a home may be the wrong approach, in spite of the urge to justify it by saying to ourselves, “I am going to be living here for many years, so I want something that I thoroughly enjoy.”

Yes, it is true that if we don’t like something, we will find fault with it regardless of its practical value.  Think of taxes!  Without them we would be denied many of our social pleasures, but there are very few of us that look for ways to pay more tax.

Emotion is often equated with irrationality.  Unfairly, I might add.  Logic can be irrational, too.  The most secure home is the eight-by-eight isolation cell in a prison, with guaranteed meals, no repairs, and a perpetual  “roof over your head.”  No one rationally would choose such accommodations.

Home buying requires a balance of emotion and logic.  One should look at buying a home much like operating or purchasing a business, balancing the need for something a person enjoys with something that is economically viable.  You may love large spiral staircases, but if you are approaching elder years, consider that, in a few years, those beautiful stairs may be a curse, as you attempt to climb the expanse dozens of times each day.  Features that appeal to you now may be your nemesis later.

Most prospective homeowners see only the aesthetics, even though they know that they should focus more on practicality.

An energy-efficient home may save thousands of dollars in heating and cooling costs each year, but large, airy windows, a huge basement, hardwood floors, and an expansive yard (with no natural vegetation to block summer heat or winter winds) offers more beauty. A large great room design is “sexy,” but the din of four kids playing in the same room in which you are trying to watch a show, work on the computer, or prepare a meal, may be stressful.  Deep, luxurious carpet tugs at the emotions, but may be hard (and expensive) to clean, or difficult to maintain with tons of traffic.  A sizeable home with a huge lot in a desirable community may say, “I’ve arrived,” but may also shout “big property tax bill.”

The litany of concerns about making emotional decisions should not deter you, however, from using your emotions to make a buying decision.  Although many of us spend more waking hours at work than in our home, we want those precious hours at home to be enjoyable.  Being able to say, “I am living in the most efficient house on the block” is of little comfort if the aesthetics are so Spartan that we would rather be at work!

Home buying requires many of the skills that a successful entrepreneur employs.  He/she looks at the balance between capital cost and long-term operating costs when purchasing for the business.  The capable businessperson evaluates the benefits of short-term versus long-term.  Yet, unlike the calculations of a pure capitalist, a homebuyer must also be ready – even eager – to say, “Perhaps I really don’t need this feature,”  or, “this item is not practical, but I deserve to treat myself well, and, since I want it, I’m going to let my heart, rather than my head make the choice!”