Don’t follow your instinct blindly! Why not, you ask? How many times does your instinct scream, “Danger! Danger!” How many times do you think the sun is shining, and the idea that anything bad can happen just doesn’t enter your head? There are those times when the appearance of a situation does not match the reality. Better to keep your eyes open, and behave with caution. Mostly things turn out just fine, and our worry is needless anxiety.
Recently we considered a “land contract” on our mobile home. There was this little whisper that just kept nagging that I really should not accept the deal. What this simply my ever present anxiety? For those not versed in such things, a land contract is where the seller is the lender, and maintains a lean on the property. Research is what I do, so I got on the computer and researched the heck out of land contract. I even wrote up a very nice contract, putting every protection I could think of into the contract.
I just wasn’t satisfied. I couldn’t shake the feeling that accepting the offer would be great for them, and bad for us. I know us, and I know we would treat the buyers well and not take undue advantage of the situation. An advantage like using their home, that we would retain title to, as collateral on another loan, and then default! My problem is, I just don’t really know them. Will they stop paying, have to be evicted, take us to court in an effort to get back part of their down payment, and leave the place a worthless mess?
All indications are that the earnest young buyers are exactly what they appear to be, good honest people just looking for a home for their children. They have saved a significant down payment, and my first instinct was to help them get a home. Getting a full price offer and earning a little interest in addition seemed like a good deal.
A land contract could be a good deal, for someone who can patiently wait five or more years to see how everything turns out. Unfortunately for our earnest young buyers, we have survived a couple of bad financial decisions before. (Financial decisions that looked good and sucked in people far more financially knowledgeable than we were.) I am not comfortable with this risk, when it would require that I borrow additional money myself, for my own housing needs.
I’m not saying you should never take a risk. If I was better able to tolerate uncertainty, and not incur additional expenses of my own, I might have made the choice to accept the land contract deal.
Some risks pay off, like sleeping our our boat on a clear starry night for the first time, or going down an alley and going around the curve to find a beautiful restaurant with an outdoor area for eating, overlooking a cheerful square full of happy people.
You never know what you will find when you take a risk, so keep your eyes open for the unexpected.
*Note: Sometimes you find a photo to match your topic, and sometimes you shape your topic to match your available photo. Many of the photos used in my blog are my own, but sometimes I need to reach beyond my own collection of photographs. Wikimedia Commons is a wonderful resource for open stock photos. This is also a good place to share your photographs with others. Have fun checking them out.