Sometimes you simply don't have time to think about things when you're buying a home. Everything seems to move so fast once you've decided you found the house and sometimes you can experience "Buyer's Remorse."
Did you make the right decision? Did you overpay for the house? Could you have gotten a better house for the same amount of money? What if you bit off too much and can't afford the mortgage? What if something big goes wrong with the home and you can't afford it? Did I really get the best interest rate possible or should I have tried harder for a better deal? The questions can go on and on.
So how can you avoid Buyer's Remorse when purchasing a home?
- First off be realistic and understand that buying a home is probably one of the largest items you will every buy. That fact alone is enough to make you have a few doubts. Feeling Home Buyer's Remorse is perfectly normal and in most cases is really a case of the "jitters" or "cold feet" more than actual "remorse."
- You should have created a list of items you wanted, needed, must have, want to have, and absolutely will not tolerate or want when you looked at homes. It's time to take that list out and read it over. Compare it to the home you are going to buy and see how many of those very important things at the top of your list are checked. If you answer most, take a small breath of relief and realize you're getting the home you want and most of the items you wanted. That's a positive thing.
- Did you find a bunch of houses that met the criteria you had or was this the only one that met this many of the items you wanted? Was this house kind of a rare find or one of many that grabbed your attention? If you answered it was a rare find then once again, this is a positive thing.
- What were the special things that made this house stand out to you when you looked at it? Have any of these things changed or are they still a part of the house that makes it special? Chances are your answer logically will be, "The house is still the same & so is that amazing...'fill in the blank'... that I loved!" If that's the case, again another check mark in the positive column.
- Is it realistic to back out of the deal now? Will you really find something better in the future? Is it worth the financial losses you would take? If you answer that losing any money would be better than making this deal then perhaps you should back out; but the reality is you're probably going to realize that you've looked long and hard and this was the house that popped for you. If it's not worth backing out because you know that you've looked and looked only to find nothing until this one that made your heart skip then it's a positive thing once again.
What's Causing The Remorse?
- Is it the fear of how much you paid for it? Then take out the CMA that your Buyer's Agent gave you and look to see what the amounts are for similar homes that sold in the area were and see if you're way out of those pricing ranges. Chances are you won't be so the reality is, you didn't overpay. Relax and realize that if other homes in the area with similarities sold for the same amount, more, or even a little bit less you really didn't overpay.
If it's friends and family who are telling you that you overpaid remember that they may mean well but the truth is they're not professionals. You utilized a professional with professional tools that helped you determine the true value of the house. - Are you still looking at other homes? If you are looking at homes that maybe you can't afford or hope that someday you can afford it then you may be causing yourself to be experiencing "envy" more than "remorse." The truth is if you're looking at homes even after you've set your closing date it may mean you are NOT happy with the home you are going to purchase. Think about getting out of the deal with minimal financial damage.
If you're looking because you're comparing and getting ideas about how you can update or decorate the home you're going to close on soon then that's nothing to worry about. Otherwise, looking because you think you might find the "true perfect home" before the closing date. That's unrealistic. Definitely a negative checkmark on the list of should I continue to buy the home if you're continuing to look at homes just in case a better one pops up. - You have a Buyer's Agent that isn't doing their job. If you find that your agent has suddenly dropped off the face of the earth because you have a closing scheduled and they're not answering your calls it can definitely cause a little panic. You may have some last minute answers you want or questions about the process you want to ask and your Realtor should be there for you.
If not you have good reason to panic and you need to step up to get your questions answered even if you have to show up at the agency and demand someone help you. A good agent will return your calls as soon as possible and definitely within 24 hours at the most! Anybody could experience fear and remorse if they still had questions about the deal that's going to happen in a few days or weeks. It's completely logical and very real to fear something you don't know about so you deserve to be educated by your agent. Once you have your answers, chances are your fears and remorse will simmer down or disappear. - Sincere doubts about your financial situation or stability can cause fear and remorse also. You have to remember that nothing in life is guaranteed and things can change with the wind. Sometimes you have to take chances and most of the time you find a way to make things work even in the worst of times.
Instead of concentrating on what could happen and the negative events that could happen after you sign that contract sit back and think about the positive aspects of owning your own home and the excitement of moving into a new place. The excitement of decorating, being able to do what you want now that it's YOUR house, and making a financial decision that will most probably be a good investment in the future, are all positive aspects of buying a home.
How To Assure That You Have Room To Back Out Of The Deal
If you really are concerned about buying a home make sure you have certain conditions written into the contract and offer that will offer you to back out of the deal without any major penalties; especially if certain changes happen such as your financing falls through. These "contingencies" should all be written in the offer you make on the house and help you to avoid Buyer's Remorse.
If there are any problems with the title search or deed then you should be able to pull out of the deal with no penalties. If the home inspection uncovers major repairs that are needed you should be able to pull out of the deal with no penalties. You may even want to leave a 48 hour or 72 hour clause that allows you to literally escape from the full closing should you choose and perhaps have a minimal penalty, such as losing your down payment. These things will help you feel more comfortable with making one of the biggest, if not the biggest purchase of your life.
It's not unusual to have fears and a little bit of buyer's remorse just before you have your closing. You're definitely not the first to wonder, "Am I doing the right thing? What if...?" and you won't be the last. Take a step back, take a deep breath, and look deeply into the reasons you are feeling fear of the situation to see if they truly are valid and realistic. In the end you're probably going to end up loving your new home and being happy you made the choice.
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