Buyer’s remorse can happen on any purchase. Cars, appliances, and clothing can all cause it. And, of course, there is homebuyer’s remorse.
Common Causes for Homebuyer’s Remorse
There are many reasons why you may end up regretting your home-buying decision, and the potential causes of homebuyer’s remorse go well beyond this short list. However, these are some of the most common reasons that people second-guess their decision.
Overpaying
The price of your home is often a cause of buyer’s remorse. For many people, the excitement of purchasing their own home can often lead to a rushed decision; they may be so emotionally attached to a house that they overpay; and they don’t feel the sting of regret until after the first payment comes due or, years later, when they start to sell the property.
Neighborhood
It can be hard to fully understand a neighborhood until you have lived in it for at least a few months. Sometimes a neighborhood, for whatever reason, just doesn’t feel like the right place for you and your family.
Commute
When purchasing, it’s easy to overlook the stress, anxiety, and time-commitment created by a long commute. You found the perfect home, so you can deal with an hour-long drive…right? That hour commute (and two hours in the car every day) is easy to justify when buying, but a lot harder to deal with at 5:00 on a hectic Monday morning.
Property Condition
Many people buy a fixer-upper property to save money on their purchase. But months later, they realize they don’t have the skills, time, or patience to deal with numerous remodeling projects. Ambition can quickly become homebuyer’s remorse.
How to Avoid Homebuyer’s Remorse
Take Your Time, Be Patient
The fundamental trait for avoiding buyer’ remorse is patience. Take your time, don’t rush into a purchase, and always remember that there are other homes available.
Accept that Your Purchase Won’t Be Perfect
From staples to homes, there is no such thing as the perfect purchase. Even if you get a great deal on the property, the house may not have the perfect layout, you may discover the neighborhood is too far from parks, or you just can’t stand the commute. For this reason, you should accept that no purchase will be perfect. No matter what home you buy, there will be aspects of the purchase that you may dislike. Accepting imperfection seems like the foundation for avoiding homebuyer’s remorse. (And it seems like pretty good life advice too!)
Use Your Own Agent
Using the same agent as the seller seems like a convenient, efficient way to finalize a deal. But you should have your own representative. Having your own real estate agent acting on your behalf can increase your chances of finding a great deal on a wonderful home. Real estate agents are honest and work with a high level of integrity, but having someone who represents your interest is a wise choice.
Buy an Existing Home, Not New Construction
New construction is clean, luxurious, and has brand-new appliances and fixtures. It would seem like the chances of a problem would be insignificant. But with new construction, you don’t get to see the house until it’s finalized.
It may be weeks, even days from closing until you finally get to walk into the property. The colors or features may not match, or the grading of the property could result in unforeseen water damage. The floor plan could seem perfect on paper, but when you enter the home it’s too crammed or complicated, which can quickly lead to homebuyer’s remorse.
Any of these issues, and more, can lead to buyer’s remorse on a brand new property.
Avoid Extreme Fixer-Uppers
We won’t tell you to avoid fixer-uppers entirely. Homes that need some repairs and remodeling can be cost-effective ways to purchase a wonderful property in a high-quality neighborhood. However, we will suggest that you avoid homes that need a high amount of construction repairs and updates.
If the roof needs repairing, walls need patching, floors need replacing, and pipes needs sealing, you may quickly regret the purchase. Many people buy fixer-upper homes only to discover that the work is more expensive and time consuming than they originally thought.
Think Like an Investor
Shrewd investors don’t buy on emotion. They don’t get excited about a purchase because it will be just perfect for the family! No, they purchase properties (or other investment for that matter) on numbers, stats, and facts. To avoid making a rushed decision based solely on emotions, think like an investor.
Consider the resell-ability of a property and think about how the property will appreciate in value. Of course, there are emotional factors involved (your family’s happiness still matters!), but, like an investor, you can’t exclude the numbers.
Only Get Advice from a Small Group of Trusted Individuals
When purchasing a home, especially for the first time, everyone you know will want to give you advice, and everyone you speak with will have an opinion about how or why or where you are buying. Don’t let their unsolicited advice cloud your judgement; too much input will lead to confusion and frustration, and that could lead to homebuyer’s remorse after your purchase.
Instead, seek the advice from a small group of people whom you trust, preferably someone involved in the real estate industry or someone who has been a homeowner for decades.
Once Under Contract, STOP LOOKING AT HOMES!
You’ve been looking at homes for months, and you’ve finally reached an agreement with a seller. Your financing has been approved, and you are now under contract to make the purchase. But you’ve spent every morning looking at listing, so why not check out a few more? You’re just curious; what’s the harm?
The harm is that you start to see homes that would be perfect, and in your mind they may be better than the one you are buying. Now you regret making the purchase before you’ve even moved into the home! For this reason, it’s best to stop looking at homes after signing a purchase contract. For your own sanity, stop browsing and start thinking about the wonderful home you are about to own!
Helping you Avoid Homebuyer’s Remorse with the Right Loan
With the right mortgage loan, you can reduce the chances of ever experiencing homebuyer’s remorse. Contact out team to learn about the best possible mortgage for your next home purchase!
