Home Buyer’s Remorse
With an uber competitive real estate market, many buyers have asked themselves the question: Will I ever get into a home? Well, thinking like this can lead these buyers into making impulsive decisions. Some of these impulsive decisions end up costing buyers with a term called buyer’s remorse. For those who do not know, the term buyer’s remorse refers to the feeling of regret after making a purchase, particularly one that involves large sums of money. While this feeling is completely normal to some degree, it is still an overwhelming feeling. This feeling is exacerbated when the purchase is a home that you might live in for many years. In fact, 64% of millennials are said to have some type of buyer’s remorse after purchasing a home. Here are some tips in order to prevent having buyer’s remorse when buying your home.
Buyer’s Remorse From Unexpected Fees
One of the largest contributing factors to buyer’s remorse for home buyers is the unexpected fees of homeownership. Often times, buyer’s are worried about making their mortgage payments and forget about things such as maintenance, utilities, and taxes. One of the best ways to stay ahead of the other costs of homeownerships is creating an emergency maintenance budget. While making sure you can still pay your mortgage, it is smart to save ahead for taxes and utilities too. Creating some type of financial reserve can eliminate a lot of stress that comes with the unknowns of maintenance problems.
Borrowing Too Much Money
Another major factor in buyer’s remorse is simply borrowing money with payments that are too expensive. Just because a buyer is pre-approved for a loan of $300,000 does NOT mean to start looking at homes that are $300,000. In this scenario, it is smart to look at homes that will be more affordable and not thin out your pockets too much. Looking at homes that range from $250,000 to $275,000, in this scenario, will leave room for negotiation and in your budget later on. Stressing about making your monthly mortgage payment each month is avoidable. Make sure you are not pressured into buying something you cannot afford.
Overpaying for a home, and waiving contingencies as well, are also causes of buyer’s remorse. With the real estate market the way it is, many buyers do not thing they will find a home they like. This often times causes them to go all-out on a home they do like. Paying well over list price in order to secure a home over another buyer is not always the economical thing to do. Sure, this does happen in real estate. After all, it is part of the negotiations. However, overpaying for a home by thousands of dollars just to get a home over someone else can lead you to a life full of buyer’s remorse.
Waiving contingencies to get a home over another buyer tends to not be a smart idea either. While in some cases, waiving contingencies might make your offer stand out. However, waiving contingencies on a home can lead to costly mistakes. Waiving an inspection contingency can have adverse effects. Problems, such as water in the crawlspace, are great tools for negotiating. Now, you must foot the bill for the repairs. Waiving a contingency just to stand out does not always lead to the best results.
Settling Can Cause Buyer’s Remorse
Finally, ending up in a home that you weren’t completely sold on can lead to buyer’s remorse. Because people feel the need to buy something, they often times feel like they have to compromise. While compromising is part of the home search, it should not leave you with a home that you really didn’t love.
Before going to look at a home, you should write down your “must haves” and your “can do withouts.” After viewing a home, take notes on what you liked and did not like. This will help you remember each home better as well because with safety protocols, you may only be in a home for 15 minutes. Compare your notes to your lists and see what that home has that you want and compromise on what it doesn’t have. And remember, do not just buy the first home and settle, having patience will get you far in the home buying process.
Buyer’s Remorse Bottom Line
One of the best ways to prevent buyer’s remorse is to work with a real estate professional. These professionals often times know what is a fair price, what contingencies are beneficial, and get you into more homes. Being about to work with a trained professional also eliminates the sense of impulse. Agents can help you make an honest decision. They will often times tell you that this home is or isn’t what you are looking for. And you never know, your real estate agent could negotiate a better deal for you as a buyer. Preventing buyer’s remorse is easy, as long as you are willing to have some patience and say in the process.