How to avoid buyer’s remorse…You’re at the office of your local real estate agent where you’ve made an appointment to fill out and, more importantly, sign your first offer to purchase (OTP) on that house you’ve been eyeing out for weeks now.
Walking out of that office a short while later, instead of feeling excited about the possibility of moving to a new house in the near future, you’re feeling rather queasy. What could possibly be wrong there?
Besides a whole bunch of other real estate-unrelated issues, you could be suffering from buyer’s remorse.
You know, that feeling of regret, that nagging feeling that you perhaps just made a huge mistake. Most often this sensation is associated with higher value item purchases such as cars, boats, houses etc. Perhaps guilt over extravagance spending, or sensation of not wanting to be wrong on this purchase.
Whatever it may be, the feeling is not uncommon. Studies have shown that nearly 10% of homebuyers (at least those willing to admit to it) have indicated that they’ve regretted buying their homes. Given the solid percentage of first-time homebuyers nowadays, it looks like the buyer’s remorse feeling will happen quite often.
Here are a number of mistakes to avoid buyer’s remorse in real estate:
(1) Failing to ask for professional help:
Don’t we all test out the waters first by asking around in the family or circle of friends what they think of the house they’re interested in? Even though most of them really have good intentions in mind when answering your questions, one has to realize that it takes someone with real estate knowledge to really be able to provide guidance as to which home would suit you better.
(2) Forgetting about the budget:
So, you sat around the kitchen table at home and figured out a house-buying strategy. Often, all of that thinking goes out the door once you walk into your dream home. The monthly bond repayments, deposit, monthly expenses etc are all forgotten. Easy things to decide before finding the home, but quite difficult once you’ve found your home. Just like going Christmas shopping and where you decide on the amount you’ll be spending that day, perhaps get yourself pre-approved so you know how much you financially can afford.
(3) Going for impulse buys:
Here’s another showday Sunday and you’re driving around with your partner to a number of open houses in the neighbourhood you’ve always dreamt of living. After a couple of houses, you enter this gorgeous-looking home and the real estate agent present informs you about a few people who are about to put in an offer. Before you know it, you’ve signed an offer to purchase to beat them. What a well thought-out plan could have saved you!
(4) Being indecisive:
If you have been carefully reading what I mentioned above, this last one ought not to be an issue. After all, by now you know you ought to have a plan before you start your house-hunting trip. Trust the professional you’re working with, know what the financials indicate on what your affordability is and you’re already beyond half-way of beating buyer’s remorse.