5 emotional mistakes home buyers make

Real estate agents say emotional mistakes are common among home buyers, who sometimes let good deals pass them by. Or worse, buyers overpay for "dream homes" because they let feelings cloud their judgment.

But buyers shouldn't beat themselves up for getting emotional. Buying a home is often the biggest purchase a person will make. Home buyers "need someone in their corner who can counsel them and make sure they are making a smart investment, not an emotionally driven purchase," says Nick Jabbour, real estate agent and vice president of Nest Seekers International. in Manhattan.

Buyers should be aware of emotional mistakes many of their peers make. Here are five common errors, with advice on how to avoid making them.

Infatuated buyers who leap at a property tend to overlook the value of the process itself -- from inspection to appraisal, says Fiona Dogan, a Realtor in the  Rye office of Julia B. Fee Sotheby's International Realty, which serves Westchester County.

"The emotional attachment will sometimes become so high" that buyers "will overpay or overextend themselves financially," he warns. Buyers "must consider an exit strategy from the beginning to avoid losing money when they sell."

"I see buyers running into the trap of buying a foreclosure or short sale thinking they are buying way below market value, when they are really overpaying," Joseph explains.

A good deal is a matter of the property's historic price, current market conditions and the home's features, as well as the buyer's own needs. Weighing all the factors isn't easy. But, Joseph says, buyers dramatically decrease their chances of making emotional mistakes by working with professionals who know the local market.

"It's best for a buyer to make a realistic bid," Hamersley says. Lowball offers risk being rejected out of hand or lengthening the process and annoying the sellers.