HOW TO AVOID HOME BUYER’S REMORSE
by Wayne Chaulk BComm., Realtor
You have probably heard the term “buyer’s remorse” and it can apply to any number of things that we purchase. It can certainly happen in the case of what for most people is the largest and most critical of buying experiences – that of their home. Buyer’s remorse is an emotional response that many homebuyers experience during the course of a real estate transaction and it can take various forms such as feelings of regret, fear, depression or anxiety. Many doubtful questions may arise: Did I buy the right house? What if I lose my job? What if home prices drop? Did I overpay? Is this really the neighbourhood or area I want to live in? Can I really afford the mortgage payments? Will I feel forced to buy the first place that becomes available because of tight market conditions if I sell first?
There are also dozens of questions that will run through your mind during the period leading up to closing: the day you become owner of the property you purchase. Most of the questions will be simple ones that are easily answered about logistics, but sometimes doubts creep in, making you uncertain you actually made the right decision and even think of backing out of the purchase despite legal implications!
When you decide to buy a new home, you are forced to step outside your current comfort zone and confront the unknown. Your mind may try to compensate psychologically for feelings of uncertainty by mentally avoiding or undoing the event. In other words, you may try to talk yourself out of buying your dream home or required downsizing property. Add feelings of uncertainty to the fear of making a long-term commitment, and it’s easy to understand why homebuyers can suffer from bouts of anxiety.
At a time when many older people are considering downsizing and are in a market that is primarily a seller’s market with very low inventory, there is the stress to act quickly at the first opportunity and take buying risks with fast decision making one normally would not take. That can lead to buyer’s anxiety & remorse.
Here are some tips that can help you battle home buyer’s remorse.
1. Prepare yourself
The best way to cope with buyer’s remorse and minimize its effects is to make sure that you are well informed. You should find out as much as you can about the home buying process, local home prices and current mortgage options, line of credit options and the bridge financing process.
It’s a good idea to study a sample purchase agreement before you buy. Read the contract carefully to make sure that you understand it, and that it says what you think it should. If you have any questions about the purchase agreement, talk to your realtor or lawyer. Also meet with your bank representative or mortgage broker early and get the full scoop on your options and steps you may have to go through to properly cover your transactions time-wise & financially.
2. Choose the right agent
In order to make sure that the purchase transaction goes smoothly it is important that you choose the right realtor to represent your interests. The right realtor will be someone whose experience, knowledge and personality are trustworthy and will allow you to feel comfortable with the whole transaction. Try to find an agent that is familiar and knowledgeable about the neighbourhood, community, and type of property that you plan to move into whether a duplex/villa, condo, home or acreage as each type has its own challenges and required knowledge to find and transact on.
3. Make sure the property meets your needs
Get out that list of wants and needs you made back when you first started the home shopping idea & process. Does the home or property type you selected include the key features that you want? Provided that hopefully you can see a few different homes and thoroughly evaluate what each home has to offer, it is likely that house you are about to buy is the best choice for you. For condominiums there are a myriad of things to consider such as: is it an adult only building, are there pet restrictions, bylaws, transportation issues, parking, building amenities, condominium fees and what they include etc. Talk to neighbours or people who know the community or complex you are considering getting their feedback which may help alleviate some worries.
4. Is the price, right?
Feeling certain about the price range you are paying for a home is one of the most important factors that can reduce uncertainty and increase your comfort level. Ensure you are looking for and viewing homes that are in your comfort zone and capability financially. Overreaching to get extra features may be tempting but not ideal in the long run financially. If your agent did not prepare a comparative market analysis for you on the home you are buying, have him or her prepare one for you now.
5. Consider the resale value
As you look at houses in a particular area, think about what the homes have in common. Most neighbourhoods are usually built at the same time by the same construction companies and will have similar floor plans and similar amenities (excluding owner upgrades). Before you consider buying the house with the most upgrades, consider whether or not you want to tackle a remodel. Do not just consider the cost of the remodel, but also think about the amount of time and headache and energy you can handle. If a house with a newer kitchen cost e.g. $50,000 more than a house with an older kitchen, and you do not have the time, energy or interest to renovate, it may be worth buying the house with the new kitchen.
6. Ask questions
No one knows the home better than the seller of the property. Try to find out via your realtor who can dialogue with the seller’s realtor, the last time service was performed on the roof, furnace, plumbing and heating systems. If buying a condominium ask the owner about the building and if bylaws are well enforced, sound transfer levels, recent or upcoming levies, management company reputation & attention to maintenance etc. Asking the right questions upfront can end up saving you a lot of money in the long run.
7. Get a home inspection
Save yourself a lot of time in possible future litigation and required updates by bringing in a licensed, professional home inspector to inspect the home before you buy. If any major problems are found, it will steer you away from a wrong decision and/ or it will help you negotiate a better price at the negotiating table for repairs before possession or alternatively compensation for issues found.
8. Review your finances
You may want to review your finances to confirm that you can afford to make the purchase in the price range you are considering. Be realistic on this aspect as ‘figures don’t lie’ as the old saying goes.
9. Discuss your concerns with your realtor
We have had some of our clients experience home buyer’s remorse at some point in the buying process or in midst of a transaction and we were able in most cases help reduce their fears and put doubts into perspective.
Remorse is a common feeling during the home buying process. Your feelings of remorse are sometimes unfounded, so the more rational things you can do to put your decision into the proper perspective, the better. Following the above tips will help you make an educated decision and help reduce any remorse you may have.
