The Art of Home Buying: mastering decisions with incomplete info

Today, let's delve into a topic that's crucial in the world of home buying - dealing with incomplete information. Now, I understand, this might sound a bit intimidating at first, but bear with me. We encounter situations with incomplete info all the time, and more often than not, it works out just fine.

So, what kind of incomplete information are we talking about when it comes to buying your very first home?

To kick things off, it's highly unlikely that you'll have the full home buying process mapped out from the outset. But fear not, as you progress along this journey, the path becomes clearer and you emerge on the other side with a much better grasp of the entire process, setting you up nicely for future home purchases too. You learn as you go.

Then, there's the matter of incomplete information regarding the property itself. Does the roof have a tendency to leak? Is the boiler nearing the end of its days? And what about the state of the wiring? This is where your diligent investigations into the state of the property come into play. You'll be leaning on your advisors (surveyors, gas engineers, electricians etc) to help you figure out what repairs might be in order. But, its important to note that while you may get some answers before sealing the deal, for others, you might have to make an educated guess and have them checked post-move-in. Take, for example, a property from the 1960s. It's reasonable to assume that the consumer unit might be the original one with the old-fashioned fuses. You could confirm this during your viewing, but specifics about the condition of the wiring might only come to light through an Electrical Installation Condition Report (EICR). If you can get the seller to allow an electrician in for a check before the deal is sealed, fantastic. Otherwise, you might need to wait until after you've settled in. So, in this case, it's wise to factor in assumptions that there may be some repair needed to the wiring and anticipate potential issues before committing. This way, if a repair is needed, it's not a sudden and unpleasant surprise.

And then there's the mystery of the seller's motivations. You'll only know what the estate agent tells you, but there might be more to the story. Perhaps they're not only moving closer to family, but there could be financial considerations or even more personal issues at play. This realm of incomplete information is one where you have little influence, and clarity may remain elusive, but could still impact on the seller's reactions or behaviour.

In our daily lives, we often find ourselves making decisions based on incomplete information. Investing in stocks without knowing if there is an eminent stock market crash coming, accepting a job offer without knowing the financial strength of the employer, or even crossing the road at a pedestrian crossing all involve a degree of uncertainty. Assumptions serve as guides, placeholders until we are able to confirm or disprove them.

Mastering the art of including assumptions in decision-making is key. It's about creating the most realistic picture possible (in other words not assuming an old property will be in pristine condition or that a new build will have excessive need for repair). You're already doing this in various aspects of life, and the home buying process is no exception. In certain cases, such as understanding the seller's true motivations, complete certainty may never be revealed. However, with knowledge, you can certainly reduce the amount of incomplete information you're working with when it comes to your potential first home.

Here's to empowering you with knowledge, turning unknowns into knowns, and ensuring you embark on this home buying journey with confidence! If you have any questions or need further guidance, don't hesitate to reach out. We're in this together!