Hello & Welcome Back to #FabulousFriday! Today we are focused on how to avoid buyer's remorse. Buyer’s remorse is a feeling of regret, guilt, or anxiety after making a purchase, thinking that it’s a wrong decision. It’s also known as buyer’s regret or buyer’s disappointment. While it can result from any sort of purchase, even the smallest ones, it usually occurs after a significant commitment, such as buying a house or a car.
After all, a home is typically one of the biggest investments most people make. It involves not only a significant amount of money, but also a huge change in their lives that can have lasting consequences.
How to Avoid Buyer's Remorse
So you did your research, you looked at model homes, you investigated neighborhoods and school districts, you made an offer, and—voila!—you’re a homeowner! This should be one of the happiest days of your life…so why do you feel like driving off a cliff ala Thelma and Louise?
Well, it’s called buyer’s remorse, and it’s as universal as the common cold. Statistics are on your side: 74 percent of first-time buyers say they like their new home better than their previous residence, and 67 percent of repeat buyers like theirs better.
And anyway, you legally have three days to change your mind and cancel the contract. Right?
Wrong! No such law exists. The only way you can cancel the contract is if cancellation rights are written in the contract. Generally, a buyer can cancel only for failure to qualify for mortgage financing after a diligent and good-faith effort, or based on the reasonable disapproval of some aspect of the home. What constitutes “reasonable disapproval of some aspect of the home”? Read on and find out.
l Notice of violations of building, zoning, fire or health laws.
l The title commitment report from the title company (which may indicate liens, unpaid taxes and easements restricting the use of the property).
l Homeowners association disclosures (such as the restrictions contained in your community's covenants, conditions and restrictions or other governing documents).
l Cost to repair any septic or other waste-disposal system.
l Lead-based paint information (for homes constructed prior to 1978).
l Termite- or wood-infestation reports.
l Information obtained from the home inspection and investigation (which may reveal adverse property conditions).
The best way to prevent buyer’s remorse is to prepare yourself in advance, long before you ever sign on the dotted line. First, have an in-depth conversation with a local real estate agent. They can help you understand your needs and what’s driving your decision to purchase. They are licensed experts who can be your voice of reason, especially when it comes to discerning what your budget can afford and what can be a costly decision that you might regret. Real estate professionals are familiar with the area you are looking for and they can better guide you in finding the right home for you. Likewise, they are your go-to person for any questions you may have about the real estate market and the transaction process. Trust in their expertise so you can have peace of mind and avoid buyer’s remorse with your biggest investment.
The best step to avoid buyer's remorse is to schedule a complimentary buyer consultation with one of our friendly, helpful Shaffer agents. They can guide you and provide the tips and tricks you need for buying your new home and avoid buyer's remorse! Call us today! Warmly, Susan