Whether it’s your first time buying a home or you’ve bought many times before, you’re bound to have some reservations about what you’ve just “done.”
Many times after making any type of significant purchase, buyers have feelings known as “buyer’s remorse.” These are feelings of doubt, guilt or uncertainty.
No matter how experienced you are, buying a home is a life changing experience. It’s normal to experience a range of emotions during your purchase transaction. You’ll go from extreme joy to serious wonder and back again. That’s ok! You have to talk to your Realtor about it; don’t shut that person out.
It’s important to guard yourself against these remorseful feelings by making wise decisions from the beginning.
Here are some tips to consider when you buy a home to help you avoid experiencing buyer’s remorse. These tips will keep you from getting really bummed out on your home purchase.
1. Understand The Home Buying Process
Home buyers who have already purchased several homes have a pretty strong understanding of the home buying process and what to expect- good, bad and ugly. Many times buyers who are just starting out have no clue about the home buying process or what to expect next.
One great way to avoid buyers remorse is to make sure that you understand exactly how the home buying process works. The best way to truly understand the home buying process is to find the best Realtor and get super familiar with each step along the way. You need not only an experienced Realtor, but a Realtor who works at your pace and spends time making sure you’re comfortable with the transaction pace. A great Realtor has professional contacts to help you through the transaction.
If you understand the process and get familiar with each step along the way, you can feel confident you’ve made the best decision.
2. Get Friendly with Your Loan Officer
Buyer’s remorse often occurs when buyer’s don’t ask their loan officer enough questions. It is your responsibility to understand not only the financing you qualify for but also what that will mean for your budget each month. You should ask questions until you feel knowledgeable and comfortable with this information. You should get pre-approved for a home loan before you ever start shopping, this is perfect opportunity to talk to your lender about all aspects and expectations for your loan and financial liability.
The lender will determine:
- if you are able to obtain financing
- what loan requirements you must meet in order to qualify
- the purchase price amount and estimated monthly payment
- the interest rate on the loan
- closing costs to expect
- downpayment amount to expect
For the majority of people, money and finances add a ton of pressure and stress to their lives. So much stress, that often times buyers avoid really analyzing their finances and budget when they’re starting the home buying process. They bury their heads in the sand hoping to avoid it altogether. Then once they have a contract in place, reality sets in and they start to freak out about what they’ve agreed to financially. If you’re considering a purchase, you should really take the time to analyze your numbers otherwise you’re opening yourself up to possibility of experiencing buyer’s remorse.
If you’ve chosen a great lender and asked a ton of questions, and know what you are spending in purchase price and monthly payment, you can feel confident you have made a great decision.
3. Needs versus Wants
One of the most important things you should come to terms with sooner rather than later is that it’s unlikely you will find a house that has every wish on your list and is still within your budget. It is, however, reasonable to expect that you can find a home that has everything you need. I think it’s important to make a list of house needs vs. house wants.
What are some common Needs?
- Number of bedrooms
- Number of bathrooms
- Central HVAC
- Stairs or no stairs
What are some common Wants?
- Floor plan – Open concept
- Chef’s kitchen (Ex; granite counters, tile floors, etc…)
- Fully fenced yard
- New windows
When you become familiar with your needs and wants lists and talk to your Realtor about that why’s on that list, you will significantly reduce the chance you will experience buyer’s remorse.
Use your lists when viewing properties to eliminate the ones that don’t fit your needs list. Then use your lists to determine which home meets the most items on both lists.
If you have been honest about your wants and needs and review each property against those lists, you can feel confident you have made a great decision.
4. Is Location Important?
A home’s location is a critical aspect of home buying to consider in order to avoid buyers remorse.
In what schools do you want to be zoned? How long of a work commute is too long? Do you want to be near a dog park? Are train tracks a deal breaker?
If you have researched neighborhoods and have spent time analyzing neighborhood features, you can feel confident you have a made a great decision.
5. Don’t Underestimate Patience
Buyer’s remorse often occurs when buyers aren’t patient in the search process. Many buyers wonder how many homes they should look at before writing an offer. There’s no “right” or magical number. Some buyers write an offer on the first house they see, and that’s ok. Other buyers need to look at 10 or 12 houses before they find the one. Trust your gut; you’ll know what’s right.
If you feel any doubt about the house you’re considering, review your list of needs and wants and objectively and critically analyze the house in question. What does your gut say? Is this your “dream home,” or the best home for right now? If you have serious doubts or hesitation, you’re opening yourself up to the possibility of experiencing buyer’s remorse. If you have trusted yourself and not rushed the search process, you can feel confident you have made a great decision.
6. You Have a Budget for a Reason
Feelings of buyer’s remorse can occur when you’ve neglected your budget. Don’t become house poor! Just because you’ve been approved for a $600,000 mortgage doesn’t mean you should spend that amount or that you can really afford that purchase amount. Don’t forget about additional life expenses. It’s easy to get caught up in the monthly payment numbers and forget about the daily life expenses that can quickly add up. Make sure you leave room in the budget for fun. If you spend every penny you earn on your mortgage, you run the risk of resenting your investment. Here are some additional expenses to consider and budget for:
- FUN
- Internet
- Garbage Pick up
- Cable
- Water
- Electric
- Gas
If you have allowed comfortable room in your budget for “life” to happen, you can feel confident you’ve made a a great decision.
7. Utilize Your Realtor’s Experience
Feelings of buyer’s remorse can occur when you shut your Realtor out and aren’t open and honest about what you’re thinking and feeling. Even if you’ve purchased 4 times before, many Realtors close that many sales in a week! You should rely on your Realtor’s experience to guide you through your purchase. It is certainly reasonable to expect your Realtor to have your best interests at heart and that person should explain how contract contingencies are used as checkpoints in the transaction, but your Realtor is not an attorney and you should not expect that person to interpret a contract for you. It is your responsibility to read your contract and all transaction documents! Your Realtor has real world knowledge and application, probably even a few funny stories to share, to support you through the process.
You can feel confident you’ve made a great decision if you have been honest with your Realtor and done your own due diligence throughout the transaction.
8. Ask Questions then Ask More
Many home buyers, especially first timers, fail to ask questions. You often don’t know what you don’t know. Failing to ask questions when buying a home is a great way to experience buyers remorse.
This is when your great Realtor becomes invaluable.Your Realtor is experienced and can often answer many questions before you ever have them. That person should be in constant contact with you throughout the process so that you feel comfortable with the details and the pace. People are different and see the world differently, if you don’t understand something, ASK! Don’t wait for your Realtor to bring up a discussion or a topic, now is not the time to be shy. If your Realtor doesn’t know the answer, he/she should know who to point you toward for the answer.
If you ask questions until you fully understand and feel comfortable with what’s happening, you can feel confident you have made a great decision.
Final Thoughts
My best advice is to find a great Realtor. Unfortunately, buyer’s remorse is way too common in real estate. Even with the best Realtor, it is normal and ok to have a little doubt and apprehension. Don’t give energy to these feelings for too long! If you take precautions discussed above, work closely with your Realtor, ask plenty of questions and stay honest about your search and budget, you can feel confident you have made a great decision.
Questions? Call me @ (615) 977-8444 or email whereyoulivetn@gmail.com