Avoid Homebuyer’s Remorse

 

Homebuyer’s remorse is the feeling that you’ve chosen the wrong house to buy, paid too much, or that the house has a major flaw. Unlike when you buy a pair of shoes, you can’t just bring your house back to the store and get something else. You own the house, and if it isn’t what you wanted, you will have to spend time and money to sell it to someone else.    

 

The best way to avoid feeling buyer’s remorse is to prevent it altogether. Here are some things you should do:

 

Obtain Mortgage Pre-approval. A mortgage pre-approval will tell you not only how much you can borrow, but also what your closing costs and monthly payments will be. A mortgage pre-approval prevents surprises both at the closing table and after the purchase.

 

Hire a Real Estate Agent. A real estate agent is a resource for answers to all your questions. As long as you’ve signed an exclusive buyer agency agreement with the agent, it is the agent’s duty to show you comparables for the area and advise you on how much to pay for a house, so you don’t overpay. Agents also point out the positives and negatives of the house.

 

Ask Lots of Questions. Information is the best prevention against homebuyer’s remorse. The more you know about home buying and the actual home you are purchasing, the more comfortable you will be with your decision.

 

Set Reasonable Expectations. No house is perfect, not even brand-new construction, and when a house may seem perfect when you are writing the offer, the inspection may reveal defects. Many first-time buyers get scared by the inspection report because they often don’t know what a normal defect is and which defects to be concerned about. Be prepared for defects BEFORE you write the offer, asking your agent questions about the age of big-ticket items, such as the roof, furnace, and appliances, and ask the agent if he or she notices anything that needs repair or updating.

 

Hire a Home Inspector. A home inspection is an opportunity to walk with an expert through the house you’re about to buy. An inspector will point out major defects and even minor flaws. At the end of the walk through with the inspector, you will receive a detailed, written report. If anything in the report concerns you, you have the right to ask the seller to repair it. As long as your purchase contract with the seller has made the purchase contingent upon a satisfactory inspection, you may back out of the purchase if the seller refuses to make the repairs you’ve requested.

 

Avoid Overexposure. Every homebuyer asks himself or herself, “Is now the right time to buy?” The answer rarely depends on what the media or your friends have to say. The only person who can answer this complex question is you and the answer depends on your personal situation, what you can afford, what type of loan you can get, your long-term plans, and why you are buying real estate.

 

Your friends, although well-meaning, cannot and should not answer these questions for you. The media may also be well-meaning, but few real estate pundits actually work in real estate, so their advice should not influence your decision. It is best to consult with local real estate experts, such as mortgage lenders or real estate agents, keeping in mind that they have an incentive to get you to buy.

 

Stop Looking. Once you have a contract to buy a house, don’t look around anymore. If you’re working with agents, they most likely won’t show you any more houses, but also resist the temptation to go to open houses. Looking at other properties will only make you doubt your decision to buy.

 

Try Renting First. If you’re new to an area or aren’t sure about buying in a particular area, it may be best to rent first. If you decide you like the area once you’ve lived there awhile, you’ll be able to target specific neighborhoods to look in and can watch for homes for sale and keep an eye on market values.