How To Zero In On The Right Property (The PDE Method)

— Sand in an hourglass will flow evenly through a narrow opening into the chamber below. Based on the laws of gravity, the flow will always take the same amount of time. But how would the sand reach the other side if it were to doubt, hesitate, and reverse its single flow direction?

Recently, a client visiting Hawaii disclosed their search parameters for a Honolulu condo purchase: “Find us a condo in turn-key condition with a heated pool up to $1Mill, close to the beach in a peaceful and quiet setting.”

Pretty straight forward and achievable with the right strategy, an open mind and the willingness to compromise.

However, the client ended up going in circles re-evaluating options that had already been disqualified previously. The most suitable available options were ‘excellent’ in some regard but either just shy of ‘perfect condition’ or just shy of being in a ‘perfect location.’

Instead of zeroing in on the most suitable ‘excellent’ options available, the client wanted to see more and more condos, some of them clearly outside of the original search criteria.

Are you sensing that the client started to ‘doubt, hesitate, and reverse the single flow direction?’

Unicorns Don’t Exist – ‘Perfection’ Is Elusive, Aim For ‘Excellence’

Looking for the ‘perfect’ unicorn condo by wanting to explore additional options outside the search criteria confused the client. Simply focusing and narrowing in on the most suitable ‘excellent’ matches could have culminated in success. For optimal results, strive for excellence and forget perfection.

See related article:  The Psychology Of Buying Hawaii Real Estate And The Three ‘Ps’ That Are Holding You Back

Regretfully, in a deja vu fashion, the client departed thinking that next year might offer more suitable condo options: “If another property like this becomes available and if it is closer to the beach than we would be very interested.”  – Sure thing.

The real issue wasn’t a lack of suitable excellent options. It was the lack of recognizing that a couple of available condo options were indeed the most ‘excellent’ matches although they were not ‘perfect’ in every way.

‘Perfect’ unicorn condos don’t exist. Not today, and not next year.

There are several properties available in ‘excellent condition’ (yellow overlap) and several in ‘excellent location’ (light blue overlap) within the client’s budget. However, properties that are ‘excellent’ in both, condition and location are extremely rare within the $1 Mill price range (green overlap).

Some ‘perfect condition’ properties (orange overlap) and some ‘perfect location’ properties (dark blue overlap) exist within the $1 Mill budget. However, properties that are ‘perfect’ in both, ‘condition’ and ‘location’ don’t exist.

“You CAN have it all. You just can’t have it all at once.” ~ Oprah Winfrey

Instead of searching for the ‘perfect condo,’ consider a mere ‘excellent condo’ that meets the top 80% of your most important search criteria. 

Consider that the tiny green section between the overlapping circles within the $1Mill oval might represent the best compromise: ‘Excellent condition’ and ‘excellent location.’  

Perhaps the client’s hesitation is not based on confidence that better options will become available next year, and not a reflection of the client’s clarity on their ‘Needs’ and ‘Wants.’ Instead, could the client’s reason to delay be because a limited budget puts the perceived ‘perfect’ property seemingly always just out of reach.

In reality, there is no ‘perfect’ property at any price point, period. The sooner you recognize that the best possible option is the most excellent match available within your budget, the greater is the probability of success.

But what are some of the tools to help zero in and recognize the most excellent match?

The PDE Method – Prioritize, Differentiate & Eliminate

Everyone is busy with something. But being busy has nothing to do with intentionally moving towards your goals. Aimless ‘busyness’ is a waste of time and energy that gets you nowhere.

Only ‘velocity,’ that is ‘speed’ with purpose in the intended direction will get you where you want to be.

To stay on track and move expeditiously forward with purpose in the desired direction, we can apply the PDE method. Prioritize, Differentiate & Eliminate works wonders in many areas of our lives including how to zero in on finding the right property.

1) Prioritize Your ‘Needs’ And ‘Wants’

Consider all home features that are important to you, including what type of property (house, townhouse or condo), layout, location/neighborhood, commute, price, number of bedrooms, size, security, privacy, views, parking, pool, amenities, etc.

Organize these home features into two written lists:

• A) ‘Needs’ – These are ‘must-have’ home features. They are non-negotiable. If you need 3-bedrooms in a single-level layout and your top budget is $1.5Mill, then it makes little sense wanting to look at any 2-story 2-bedroom properties at $3Mill.

Be realistic with your expectations for the Honolulu market. There aren’t too many homes on Oahu that have a 4-car garage.

• B) ‘Wants’ – These are home features that you don’t necessarily need but would like to have. Know the difference between your ‘Needs’ and ‘Wants.’ It could make the difference between living within your means or getting yourself into trouble trying to keep up with the Jones’. Instead of opting for the most housing for your wants, consider being practical and choose the best matching housing for your needs.

Compare both lists and determine which items you could possibly downgrade or eliminate (!).  Be honest. Perhaps some items should instead be moved onto a third list:

• C) ‘Nice to Have’ – These are home features that you don’t require. They are merely a bonus to have.  

Organize the items on each list in order of importance. Be absolutely clear about the priority of each item in comparison with each other. – “Are you certain that the property size is more important than having a short commute?”

Compare several home options and get a good sense of the current reality of the market. Aim to find a home that meets or exceeds at least 80% of your ‘Needs’ and many of your ‘Wants’ within your budget.

If you are in doubt about the order of importance, use Ben Franklin’s famous decision-making method. List the pros and cons for each ‘Need’ in two columns on a paper and carefully weigh them concerning importance or impact. Don’t rush. Reflect and evaluate each item in both columns. The most important high priority ‘Need’ will reveal itself.

2) Differentiate Between ‘Curable’ And ‘Incurable’

What if any of your important high priority ‘Needs’ are less than excellent in the property you are considering?

Simple. Ask yourself: “Is it fixable?” Perhaps it is. If you have dust allergies and hardwood floors are high on your ‘Needs’ list, recognize that you could easily replace the existing carpet with wood floors.  

Zoom out. Consider the big picture and don’t get hung up on easy fixes.

However, realize that some shortcomings are indeed ‘Incurable’ conditions or defects. If a ‘peaceful and quiet garden setting’ ranks on top of your ‘Needs’ list, then a noisy freeway behind your property is an incurable defect. You can’t fix it. And the pretty hardwood floors will never make up for it.

Move on to the next property that better matches your ‘Needs.’ It makes little sense to re-visit properties that have been disqualified by not meeting your high priority ‘Needs’ representing incurable defects.

Recognize that the property location is always incurable and the property condition is mostly curable. You can never change or fix the property location. It is out of your control. It either matches your needs or it doesn’t.But, you could improve many aspects of the property condition.

Therefore, consider giving higher priority to the property location over condition and size.  – “Location is everything.”

Take another look at the first diagram at the top with the ‘perfect’ vs ‘excellent’ circles. Since improving the property condition is well within your control, could a property that is in the ‘perfect location’ but in less than ‘excellent condition’ (dark blue overlap) be a better match than a property that is in ‘excellent condition’ and in an ‘excellent location’ (green overlap)? 

See how differentiating between ‘curable’ and ‘incurable’ conditions can open your eyes to new opportunities that you might not have considered otherwise.

Life isn’t perfect, but it is mostly excellent, at least with the right mindset. So are housing options. Choose to be content having to settle with the most acceptable compromise within your budget.

3) Eliminate Choices – The Optionality Curse 

Even after prioritizing needs ‘Needs’ vs ‘Wants’ and differentiating between ‘Curable’ vs ‘Incurable’ conditions, some buyers still struggle with deciding which home they like best. They can’t make up their mind between suitable choices.  Instead, they desire to keep searching for additional possibilities, thinking that “there must be still a better property out there.” 

FOMO – the Fear Of Missing Out on some secret yet to be discovered opportunity turns into an obsession to keep looking, often forgetting the original most important ‘Needs’ criteria. – Going in circles? No wonder the client gets confused and frustrated.

This counter-productive mindset is another variant of the ‘the grass is greener on the other side’ syndrome. ‘Optionality’ becomes a curse, no less than ‘Perfectionism’ is.

For the cure, try the ‘Eliminate Choices’ method.

Instead of asking “which home do I like?” use the opposite approach: “Which home do I like the least?”

When looking at homes, take detailed notes for each property at the time of viewing. Assign a descriptive name to each property, creating a vivid picture so that you can remember what makes the home unique.

After seeing the first three homes, you must eliminate the least attractive option of the three seen so far. After seeing the fourth home, you must again delete the least attractive option.

The goal is to simplify your choices based on your first impression. Quickly identify which options are not top contenders and eliminate them for good.

Unless you are prepared to buy a dozen homes, there is no need to have more than your top two best home choices remaining on the list at the end of the day.

If the top contender out of the remaining two options is not apparent, then we schedule a follow-up visit for a more thorough viewing and comparison. Use the Ben Franklin method again to establish the final most suitable match.

Eliminating choices reduces irrelevant distractions, reduces anxiety, and simplifies life. It will prevent you from spinning in circles and minimize the risk of counterproductive analysis. It will help separate the signal from the noise and move you forward in a single flow direction to zero in on the right property.

“What is one thing you can remove from your life that would improve it?” ~ James Clear

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We can’t stop trying to be helpful. May you benefit from one more simple mental model for success:

Tiger Woods’ Simple 2-Step Success Formula

Life can seem overwhelming. Yet life is only as complicated as we allow it to be. That is also true for zeroing in on the right property. High-achievers forge forward because they only focus and implement what is relevant at the moment. At the same time, they successfully eliminate all distractions.

Simple, but not easy. Otherwise, more perpetual dreamers would gain traction, morph into doers.

Thousands of seemingly motivated buyers express how serious, willing and able they are to buy a home in Hawaii. Yet, many fall short of turning their dreams into reality.

Only a few develop a) a clear mental representation of their ideal world, b) commit to taking the necessary steps, and c) relentlessly execute their plan.

Golf legend Tiger Woods explained it best when he was asked some time ago how he is able to play at his high level of success. In earnest and simple terms, he answered: “First, I determine precisely where the ball needs to go. Second, I figure out the best way how to get the ball where it needs to go.”

Tiger’s basic success formula translated is:

1. Know precisely what you want
2. Commit to finding and executing the best plan to get it

Write it on your bathroom mirror. Apply this concept to every aspect of our life. Ask yourself, “Where do I want to be in life? Where do I want to be with my relationship, my purpose, my contributions, my health, my fitness, my financial security? What kind of life do I want to be living? And, where do I want to live?”

We all have choices. You can design your life the way you want. You have the unique gift of deciding what path to take and what life to live. You just need to take the right deliberate sequential actions. Just like the sand in the hourglass, make sure you move forward in a single flow direction.

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We sincerely care for you to find the right property. We are committed to your success and prepared to do whatever it takes.

Contact us when you are ready to buy or sell real estate. Until then, keep in touch and sign up for our newsletter.

We are here to help.  ~ Mahalo & Aloha