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How to Avoid Home-buyers Remorse
Sometimes, the emotional stress you feel after making a big purchase is enough to make you wish you’d never signed on the dotted line. After purchasing a home, you may feel regret — otherwise known as home-buyers remorse — and believe it or not, you’re not alone.
Because it’s such an extremely common problem, we put together this guide to help you to understand how to avoid these feelings during and after the purchase process.
Overcoming Home-buying Anxiety
Buying a home is complicated. You’re balancing your needs against financial limits all while trying to find the best home for the money. It’s easy to forget that you’ve already done your homework, so remember to breathe and trust your instincts. Here are a list of considerations that can help you feel more confident in your purchase:
Build a realistic budget. Put those feelings of finances spiraling out of control to rest by building a home budget that covers all major expenses. Once this is fleshed-out, you’ll be able to better predict your finances.
Build a “wants and needs” list. This simple task allows you to prioritize things that your new home needs, like a new roof or immediate repair issues, versus things you want to have like a new deck in the backyard.
Understand the mortgage types. Before you close, be sure to review the types of mortgages available to you. Even if your current broker hasn’t offered you an option that seems worth your consideration, be sure you understand the long and short-term financial implications of each.
Watch the closing costs. Closing costs often catch home buyers by surprise, as these can make up anywhere from 3 – 6 percent of the total purchase price. By negotiating for points, or requesting that the seller take on certain costs, you can help keep the closing costs down.
Work with an experienced realtor. By electing to work with a realtor that’s been through the paces of purchasing a home, you’ll be more likely to trust their guidance. The expert advice of a seasoned realtor is priceless when you find yourself in uncharted territory.
Stay flexible during the purchase process. Sometimes the demands of underwriters to get financial data and historic records can feel like a lot to manage. Realize that these requests are really just part of the process of buying a home.
Buyer’s Remorse After Buying a Home
Here’s the good news. Home-buyers remorse happens to a full 52 percent of all home buyers. So if you’re feeling regret about your purchase, you’re not alone. Even those that carefully weighed out their purchase undergo some regret afterwards.
By exploring the reasons for the regret, you may find that the stress involved in moving and buying your home is a lot to take on. And consider these reasons why some people experience buyer’s remorse before making your purchase.
Common Causes of Home Buyer’s Remorse
There are a few of the more common reasons people experience home-buyers remorse:
They spent too much money. From dishing out closing cost money and paying for home inspections, to worrying about future repair issues, money concerns are front and center. Dropping interest rates can also induce regret.
They bought in the wrong neighborhood. Worries that the real estate market will decline in the future are natural. As neighborhoods shift, and property values trend up or down, it’s difficult to say definitively which way it will go.
They fear that they bought the wrong house. The home you purchased is the one you’ll be living in until you make a big change. That alone can get new buyer’s thinking about how they could have done better if they’d only waited and put an offer on a home elsewhere.
They worry that the house is too small. After considering all the locations and various school districts available, buyers may make concessions. Worrying that the home isn’t big enough is a common issue when other factors weigh heavily into the decision-making process.
How to Avoid Home Buyer’s Remorse
The best thing you can do is break free from the habits that are evoking feelings of buyer’s remorse. Do what you can to focus on the benefits of your new home. Lastly, explore your goals and make a commitment to meet them.
Here are a few ways to avoid buyer’s remorse:
Stop shopping for new homes. It can be tempting to start a new home search online and explore all new listings on the market. But given all you’ve invested, you’re probably not in a position to consider buying now, even if mortgage rates have gone down.
Break the cycle of nitpicking the house to pieces. If you find yourself repeatedly finding faults with the new place after you buy, dedicate to changing that nitpicking voice into one that only sees the positives of your new home.
Listen to other people’s opinions. There are a lot of reasonable voices out there giving you positive feedback about your decision. Embrace those opinions.
Revisit your goals by focusing on your wants and needs. Keep that list handy and review it frequently. When you’re forward-focused, you’re more likely to feel centered and confident.
What to Do If Your Home-buyers Remorse Concerns Are Valid
If real issues persist, sometimes problems can’t be resolved. Your home-buyer’s remorse may be legitimate. Here are actions you can take when that home-buyers remorse is real.
Put together a list of valid issues and contact your real estate agent. If the issues merit action, your real estate agent may be able to pull out of the contract and cancel the agreement.
Don't Forget to Protect Your New Home
While settling into a new home may take some time, it's important to make sure that you're protected with great homeowners insurance coverage. Having comprehensive coverage on your new home can give you peace of mind that you're prepared for the unexpected. For instance, optional coverages, like equipment breakdown and service line coverage can remove some of the anxiety of major systems and appliances failing suddenly.
Related Topics: At Home , Home Insurance , Owning A Home , Renters