My Decision Making Process Might Be Holding Me Back
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I wrote the other day on Debt Roundup about how I am a defensive pessimist. You might not know what that means, but it is basically someone who thinks of all negative possible outcomes and plans how to deal with them. It is not true pessimism. I don’t just acknowledge a bad outcome and then do nothing about it. I plan accordingly and then make the most informed decision that I can. The funny thing is that I have found that many men are defensive pessimists and many women are optimists. I don’t think there is anything wrong with that; I just find it funny. There are many guys within my family and friends who are the same as me. We take a lot of time to make decisions. (Editor’s note…Grayson you’re not alone in this as I would likely call myself one as well. 🙂 )
Unfortunately, I am finding that there are times when my defensive pessimism is causing me issues with actually making a decision. While looking over all scenarios and doing research is not a bad thing, it can really hinder you when you need to make a decision quickly. I am dealing with this right now as my wife and I search for a new home to buy.
Quick Decision Making is Not My Forte
I used to make quick decisions a lot when I was spending beyond my means. Impulse purchases were trouble for me. My mind would tell me to go for it as I could “afford” it, yet my gut would tell me to stop and think. I am the complete opposite now. My gut will tell me to go for it, yet my mind will tell me to stop and think.
There are times when your gut isn’t right and for me that can be often! I have always been a defensive pessimist who thoroughly planned out decisions. If the decision had any complexity, it just made it worse for me. I would have a back and forth battle in my mind before I could make a decision. This has only been magnified since I got out of credit card debt. Now, I can come up with a decision, yet I will second guess myself constantly. It really does hinder me, yet I do finally make decisions.
Hot Real Estate Means Quick Decisions
The city we live in is on an upward swing with regards to Real Estate. It is definitely a sellers market here. This was great for us when we listed our home for sale, but it has been hell while we are trying to buy one. We have to either get a home soon or will need to start renting until we can get one. This means we will have to move twice. That is not something that I look forward to.
We are looking for a home in a hot part of our city. Many families are moving there because the schools are great, the commute is good, and the neighborhood is kid friendly. This is where we want to raise our son and grow our family. The problem is homes are only staying on the market for a few days at best. They are literally flying off the shelves. You can see a new home listed on the market and by that afternoon, they have already had 10 showings. We were at a home that just listed and we were in there with four other couples. It was crazy!
My wife is a very go with the flow type of person. I love that about her. She can make a decision quickly and generally be happy with it. I am not that type of person. I need to have a plan for every possible scenario that can happen. I can’t make a quick decision and that is really putting us at a disadvantage as we look for a home. I need time to do my research, but when I finish, the home is already under contract. We have figured out a solution, but it is costly.
My Decision Making Solution is Costing Us
For those who have not purchased a home in some time, there is something called a due diligence fee. This fee is given to the sellers as a way to give you time to get your inspection, appraisal, and loan done. You can negotiate the amount of time, but if you drop out during that time, the seller keeps your fee. If you go through the entire process and buy the house, then that amount is just subtracted from your overall loan.
We have put in one offer so far on a house and we got it. We had to make a quick decision as we were in a bidding war. I liked the house, but didn’t really have time to research it much. It was older, so that had me a little concerned. We dropped $250 for the due diligence and I started my research. It only took me three days before I realized the home would be more trouble than it was worth. There were just too many things wrong with it or potentially wrong with it. Since it was much older, there was a very high probability there were hazardous chemicals in the construction material. That didn’t sit well with me.
After looking at the costs alone just to get it tested and the amount of work we wanted to do, I decided that we needed to get out of the contract. That cost us $250! Unfortunately, for a person like myself, I have to use the due diligence period in order to due the research that I would normally do before we even put in an offer. There is just no time to wait. Since we have to pony up some dough in order to get this period, it just irritates me more. In the grand scheme of things, I think the small fee is worth it in order to get a home that we really want. I just don’t like paying more money than I have to. My decision making process is really holding us back in this regard and it could end up being costly.
How do you handle decisions? Are you like me where you have to research as many outcomes as you can? If you can live with the worst outcome, then you will go for it?
Photo courtesy of: Sasquatch I