10 Ways to Avoid Home Buyers Remorse
Hello friends and neighbors, according to an article in the National Association of Realtors, buyer's remorse is rampant among home buyers that purchased home during the pandemic. It turned out that a large number of unhappy homeowners is emerging after having time to settle with their purchase over the past couple of years.
You may remember, buyers, at the time were bidding up home prices in fierce competition, and in the process, some waived the home inspection and or the appraisal to get the house. But now there are regrets. And lots of it.
Image taken by Diana at Breckenridge Forest in Spring- Brand New 5 Bedroom
The article, citing a survey from Hippo Home Insurance Group, states that more than three-fourths have expressed regret about their buying decision. While another survey from Clever Real Estate said 30% now feel they overspend, and 26% felt they rushed into the buying processed.
They are not alone. According to the Coldwell Banker Global Luxury Trends Report, even the ultra-wealthy are having regrets. One quarter of luxury home buyers who purchased home within the same period of time, now regret doing so.
As first time home buyers, we want to make sure you will have no regrets after purchasing your new home. Here are 10 steps you can take to avoid buyer’s remorse.
Always work with an agent that will look out for your best interest. The fact is, some real estate agent only care about closing the sale at any cost and will do so at your expense.
Set a mortgage payment you are comfortable with and stick with it. If you are comfortable with a mortgage payment of $3,000 a month, do not get a mortgage for $3100. That $100 may seem like a small amount, but since you did not originally budget for it, it will need to come from somewhere. This may mean you have to put in extra time at work, or pull it from another bill, which may have you playing catch up every month.
If you think the house is too small or too big, it is, and you should keep looking. Buying a house that is too big, will require more resource to maintain. Bigger homes mean bigger utility bills and bigger tax bills. On the other hand, buying a house that is too small may have you regretting it sooner than later. If you like a large kitchen for family gathering, large open living room for entertaining or a large backyard, do not settle for a home that have a small kitchen, a small closed off living room and a small backyard. Remember, you will be the one living in the house, not your realtor or loan officer. You.
Think about the location of your new home. How long will it take you to get to work, the grocery store, the park or mall? will that distance be OK with you and your family? Recently, I was having a conversation with John, a realtor friend of his helped him purchase a home in a location, that have him arriving at work late, almost every single day. Location matters. Make sure your location will work for you before choosing your new home.
Buying a as-is house and fixing it up sound great, but is it really? While it just may be great for others, it may not be a good choice for you. Let’s say you purchased this as-is house. You get it at a great price. You overlooked the part, why you were able to get it at such a bargain price. You are happy. But, it turned out that the house need a new roof. The plumbing system needs to be overhauled, the heating and cooling system needs to be replaced and the foundation needs work. There are other stuff that need work as well, like replacing the appliances, the counter tops, toilets and flooring. You have no home warranty because you purchase it as-is. All expense will be out of your pocket. Remember, getting a deal on a house is great, if you have the necessary resources, and took the time to price out the cost of renovation ahead, while leaving room for the unexpected.
Privacy. This is something that most home buyers do not take into consideration when buying a home. But think about it. How important is privacy to you? Will it be OK with you if you are standing in your living room and your neighbor is looking right at you through the open window? Will you be OK with forced conversations with your neighbor, because every time you’re in your backyard they can see and almost touch you? What about when you neighbor is smoking and you end up secondhand smoking along with him or her? Will you be able to deal with any of these things, and for how long?
If during your home buying process you begin to feel stressed or burnt out, it will be in your best interest to take a break. Taking a break allows you to calm and clear your mind, in addition it also helps to improve your focus and mood. This in-turn will help you to weigh your options and stop the process if necessary. Remember, you should not be ushered into buying a house just because your realtor think you should. Take more time if necessary, and don’t allow yourself to be pushed into buying a house you do not love.
To avoid temptation, it’s best that you only look at homes within your financial comfort zone. There will always be homes with nicer kitchen, elevation, flooring, backyard, bathrooms, living rooms, layouts and the list goes on. However, a house listed for $400,000 will come with a mortgage payments that is lower than one listed for $500,000.
Make a list of your must-haves and things you would like to have. Keep in mind, if you’re shopping with a partner, the right home should meet both your needs. Understand that compromises will always be necessary to stay within your budget. As a real estate broker, I always re-frame my buyer’s home search and keep them focused on their priorities, while helping them to make confident purchase decision. I help them to stay realistic about affordability and what’s possible, instead of “I wish I could afford this or that.” You also need to know your deal breaker before begin your home search.
Do not allow yourself to get distracted during your home buying process. Buying a house is a fun and exciting time for first home buyers. However, there’s also lots of distractions. One thing buyers can allow to distract them are the great staged home they will view. It’s usually here where they begin to focus on the decor instead of the location of the home or the layout. Instead they like the sofa, or the bed, the custom paint in the dining room and the dishes on the table. However, making a decision to buy a house because of these things will lead to buyers remorse. If it’s not on your list. Move on.
If you are getting ready to buy your first home, to avoid buyers remorse, take the time necessary to look, until you find the home that is right for you and your family. If you must have a bedroom down, don’t settle for one with all the bedrooms up. Know your financial limits. Do not take on more than you can handle. And most important, work with a agent that will look out for your best interest. As always, thank you so much for stopping by. Until next time...Diana
Image: by Diana
