Making the best decision regarding whether or not to buy or sell a home is usually one of the most important life-changing decisions a person can make. It requires weighing carefully both emotional benefits and financial considerations. When prices declined several years ago, the change in market conditions forced buyers and sellers to think only in terms of the financial impact of transactions. Making a decision based on price alone rarely leads to happiness. Perspective buyers and sellers should always give equal weight to the financial impact and the emotional benefits of a decision.
Ben Franklin was considered to have one of the most creative minds and was one of the best inventors in American history. What made him so successful? Ben always compared the pros and cons of a decision in writing. On the left side of a blank sheet of paper, he would make a list of all the reasons why his decision made sense (the pros), and on the right side, he would document the reasons why he shouldn’t make the decision (the cons). He would then compare the pros to the cons and would always reach a logical conclusion. Always ask yourself, “If I were to buy or sell today, what would that mean to me?”
This approach is called the Ben Franklin Strategy. By documenting the pros and cons, you crystalize your thinking and come to a logical decision based on emotional and financial considerations.
If you don’t document the pros & cons of every important decision, you run the risk of rationalizing your decisions based on distorted facts, and decisions that are rationalized are rarely good decisions. The Ben Franklin Strategy should be used before making any important decision, especially one that involves buying or selling a home.