6 Lessons Monopoly Can Teach You About Home Buying

You're ready to embark on buying a new home, so what does Monopoly have to do with it?

1. Patience MONOPOLY: So your family has decided to play Monopoly? Refill your beverage, grab a snack and change into comfortable clothes. You’re going to be there a while.

LESSON: Buying real estate is a process. There’s pre-approval for a loan, interviewing agents, searching for homes, submitting an offer, maybe submitting another offer, the home inspection, the appraisal, and final loan processing before you get the keys. Needless to say, buying a home can take some time. Instead of getting frustrated, focus on all of the great reasons you decided buying a home was right for you. Staying in close communication with your agent throughout the process will help, too.

2. Neighborhood matters MONOPOLY: Everyone starts the game with one corner in mind: Boardwalk and Park Place. The high-priced properties have the best returns on investments, and the players who snag them first tend to do well in the game.

LESSON: Location is often a major consideration in real life as well. Home values, lifestyle and so much more are factors in your neighborhood choice. Work with your agent to learn all you can about the neighborhoods that pique your interest.

3. Keep an open mind MONOPOLY: Baltic and Mediterranean Avenue have a bad reputation because they’re the cheapest properties on the board, but they also present opportunities. Add a few houses and hotels and your return could be bigger than the one on nearby Connecticut Avenue.

LESSON: Keep an open mind when shopping for a home. An up-and-coming neighborhood may have the appeal you didn’t see before, and more value for your budget.

4. Be prepared MONOPOLY: You’re a Monopoly mogul! You have a handful of desirable properties and a steady stream of income from your houses and hotels. Then comes the Chance card: “Make general repairs on your property – for each house pay $25, for each hotel pay $100.”

LESSON: You never know what card you’re going to draw. But unlike Monopoly, the real world has home insurance available to help you prepare for unexpected repairs and disasters. A variety of plans, customizable to any budget, are available. Some homebuyers also opt for warranties covering potential appliance issues after move-in.

5. How to win a bidding war MONOPOLY: Trading properties keeps Monopoly exciting. And there are no strict rules as to how a seller determines to accept an offer. Sibling rivalry, bribes involving candy or even business sense can play into a player’s decision.

LESSON: Sellers don’t always accept the highest offer. Writing a good and clean offer with few contingencies or a quick close can often win over the highest offer. Send a pre-approval letter from your lender with the offer to show the seller you're qualified and ready to go! There are many ways to write an offer that can be appealing to the seller.

6. The importance of strategy MONOPOLY: Monopoly is a game of strategy, but few players are inclined to study ways to win. What if you had a coach sitting next to you, advising how much to bid for a property, where to look next, and whether or not mortgaging a utility to buy Boardwalk is a smart idea? You would be unstoppable!

LESSON: Buying a home is an infrequent occurrence; for some, it happens only once in a lifetime. Wouldn’t it be helpful to have someone on your side who is up-to-speed on laws for your state, knows which neighborhoods would best fit your lifestyle and helps you navigate a bidding war? That’s the value an experienced agent provides.