Overcoming Homebuyer Hesitations: FOMO, FOBO & FOOP
The Challenge of Making the Right Property Decision
The property market is constantly shifting, making it challenging for buyers to know when to jump in or hold off. Interest rate movements, seasonal fluctuations, and supply levels can all impact prices and buyer confidence.
But when emotions like FOMO (Fear of Missing Out), FOBO (Fear of Better Options), and FOOP (Fear of Overpaying) take control, they can cloud your judgment—potentially leading to missed opportunities or costly mistakes.
Let’s break down these common psychological hurdles and how you can beat them.
FOMO: Fear of Missing Out
Is Now the Right Time to Buy?
FOMO is a real concern for homebuyers, especially when market conditions indicate upcoming growth. According to REA Group, buyers are feeling the pressure to act quickly as expectations of interest rate cuts fuel speculation that property prices may rise again.
Already, research from CoreLogic signals that home values are on the rise, making autumn a competitive season as buyers rush to enter the market.
Should You Jump In?
While it’s tempting to rush into a purchase, it’s critical to assess whether you’re financially ready. Before making a move, consult with a mortgage broker—like CBM Mortgages—to determine your home loan eligibility and borrowing power.
FOBO: Fear of Better Options
What If There’s a Better Home Out There?
FOBO often holds buyers back, leaving them endlessly searching for the perfect property. The reality? No home is 100% perfect. Most buyers compromise in some areas to secure a property that meets their needs.
How to Overcome FOBO
Create a priority list:
- Essential features—things you must have in a home
- Nice-to-have features—elements that would be great but aren’t deal-breakers
If a property ticks most of your must-have boxes, it’s probably a great fit—don’t let FOBO delay your dream home purchase!
FOOP: Fear of Overpaying
Is This Property Worth It?
Nobody wants to overpay for a home. But hesitation can sometimes result in lost opportunities—especially when home values trend upwards over time.
For instance, data from SQM Research shows that back in 2009, the average asking price for a house in Sydney was about $755,000. Fast forward to March 2024, and that figure has jumped past $1.9 million.
Two Steps to Avoid Overpaying
- Do thorough market research – Check recent sales in your area to compare prices.
- Get home loan pre-approval – Pre-approval strengthens your negotiating power, proving to sellers that you’re a serious buyer.
Remember: Long-term property investment typically beats short-term market timing—so if you plan to hold onto your home for years, chances are you’ll be glad you bought sooner rather than later.
Get Expert Guidance Before You Buy
Whether you’re battling FOMO, FOBO, or FOOP, making the right financial decision is essential for your homeownership journey.
For more information on First Home buyer benefits go to our dedicated page for First Home Buyers, click here or read more on our blog for options if you have a low deposit, click here
At CBM Mortgages, our MFAA-accredited finance brokers can help you:
✅ Understand your borrowing power
✅ Determine your monthly mortgage repayments
✅ Secure home loan pre-approval
📞 Contact us today at CBM Mortgages and take control of your property-buying decisions!
Disclaimer- The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent
Written by Craig McDonald 14/06/2025
