Should you listen to friends and family?

Should you listen to friends and family when it comes to making decisions about selling or buying properties? While they have good intentions, most are there to support and comfort us.  Let me explain by sharing my brother and sister-in-law’s experiences when they purchased their first home. 

Back in 2013/2014, they decided to settle down and purchase their first home together.  Like most buyers, they spent time doing market research and seeking advice from experts about buying a home.  Being a great son, my brother would ask my parents to come along on their 2nd or 3rd visit to the properties they shortlisted.  What’s interesting is that every single house did not meet their approval because my parents thought the price was too high or for other reasons. Feeling exhausted by the constant disappointment and disapproval, my brother and sister-in-law decided to act independently by going to an auction and successfully outbid four other bidders on a two-bedroom townhouse on the North Shore. My parents were totally shocked when they heard how much they had paid for it. I can still remember vividly how worried they were and were totally convinced that my brother and sister-in-law had been taken advantage of and made the wrong decision.

“They paid way too much for a two-bedroom in an average suburb! They are going to regret it for years to come.” Those were their exact words. 

Fast forward to the year 2022, the two beddy has in fact doubled in value, not to mention the positive cash flow return they are getting from rent. We love our parents and as I said earlier, they have the best intentions and only want the best for us. 

My most recent recollection was a client who was considering selling her home to upsize. I presented my proposal and then contacted her a couple of days later to follow up. She mentioned a decision will be made after speaking to her friend that has just sold her home. I was confused. It’s like deciding on whether to do surgery by asking a friend that has recently gone through one instead of listening to a surgeon.

While our friends and family are loved and respected and their advice is full of good intentions, the reality is that they are not experts in the field.