My First Home....

You know the purchase of my first home was controversial on a number of fronts. There are a lot of misconceptions about the purchase, so I figured it was time to tell my story.

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The most complex purchase decision that I have made to date is the purchase of my first home. So for this exercise, it is only fitting that I trace this complex purchase from inception to today. The reason being is that the process completely changed my life in a multitude of ways. Through the process of this complex purchase, I became a better businessperson, a better man, and developed a larger understanding of personal and business relationships. (This was the first time that I understood that achieving your dreams can make other people feel uncomfortable. I guess it would have helped if I would have purchased a typical starter home. Oops! Yes, I do tend to think and act big!) Purchasing a home was daunting enough without the extra variables that are inevitable when dealing with a purchase of this magnitude. It became infinitely more complex because what started as a decision that I need more space turned into a project that consumed most of my time in 2005, as the opportunity presented itself for me to build my own home.

There were several levels of need recognition that facilitated the first steps in purchasing my first home. The first was obviously a need for additional space. I was living in a one bedroom apartment that did not have central air conditioning or central heat. I had lived there for seven years and had outgrown the apartment in terms of space. So more space became imperative as I felt cramped and very uncomfortable. It was costing me extra money to rent storage space and to keep belongings in other locations. Another level of need recognition was to do something that was solely for myself. I needed to make a decision that was solely based on what I wanted, not what my parents thought, or anyone else for that matter.

The process of the information search started with a letter that I received from a mortgage broker advertising his services. I called him and we had a conversation about the overall process and I got pre-qualified for a specific dollar amount. He referred me to a real estate agent that could guide me through the process and we set up a meeting to discuss my requirements for a home. The real estate agent that I was referred to had 20 years of experience selling real estate. This was essential because as a first time home buyer, I needed guidance to successfully navigate the overall process. So in our initial meeting, I articulated my basic requirements which were additional space and a house that was not a fixer upper. Other requirements were that I wanted room to grow and that I wanted a newer house with more of a modern architecture. Personally, I have a thing for uniqueness as I like to be different from everyone else in my approach to life. I also had a vision of building my own home, but I did not think that it would be feasible because of the time and cost factors associated with building a home.

So we moved to the evaluation of alternatives, where my real estate agent and I started to look at houses. The problem that we encountered during this process was that it was a seller's market. Which meant I did not have a lot of leverage in negotiating the terms that I needed for my purchase. In addition, there was a bidding war for most of these houses that were on the market. My real estate agent was helpful in this case, by leveraging her extensive relationships to establish viable housing alternatives. However, the houses that were acquirable were not kept up and posed additional problems that were hidden in nature. One of the major problems that I faced during this process is that I did not have the money for closing costs. This is where my real estate agent got creative in presenting a solution that would meet everyone's requirements. (Probably, because she wanted the sale, and I was threatening to buy in Atlanta, where I could purchase my home for a significant cost savings.)

Hence, I was presented with the option of partnering with a local builder to build my first home. My real estate agent had a relationship with the builder's real estate agent which made the deal possible. The builder took care of the zoning approvals and the land. In turn, I secured the financing and provided the specifications of what I wanted. This made the purchase decision a virtual no-brainer. The contracts were drawn up and executed on both sides with the earnest deposit being provided by myself. This facilitated the building process which took six months to complete the house. Until closing there was not much in the way of purchase decisions.

There was significant postpurchase behavior decisions that had to be made. The builder offered a one year warranty to fix any defects in the house. So, I worked with the builder for that year to fix defects in the house. Most were natural as the house needed to settle before any of the defects could be fixed. Such defects included nail pops, sewer backup, minor dishwasher issues, etc. Overall, I was satisfied with my purchase, but I understood that there was a lot of work that needed to be done to turn the house into a home.

Did I experience cognitive dissonance? Yes! Assuming that we defining the term as buyer discomfort caused by postpurchase conflict. (There is also the psychological definition which is a psychological state that describes the uncomfortable feeling between what one holds to be true and what one knows to be true.) Personally, I experienced both when making this purchase. Currently, there are houses that I past each day while driving that I think that are architecturally better. I have to remind myself that my house is beautiful and that I need to work diligently in order to make that house my home. In addition, there are drawbacks to the builder that utilized and building in Maryland in general. I had not anticipated purchasing my own washer and dryer after closing was completed. I wanted to finish the basement, but did not have the funds to finish the basement the way that I envisioned. So those were compromises that I had to make in order to move forward. Plus as I the house continues to "settle" I see decisions that I want to make in terms of decorating and future remodeling. That does not include the fact that the house was a daunting purchase, that I was not sure that I could maintain on my own. Psychologically, this is where I experienced that form of cognitive dissonance. Especially, when it came to the terms of my loan and other features of the house. I had a feeling that everyone could do better than what they were doing. But as I hard as I pushed, I could not reconcile the two. So I conceded. Now I am refinancing and preparing to make changes in my house to my house to get it more to my liking. Then again, I figured that I was up for a challenge. The saga continues...