What is buyer's remorse? Stress can come from
the home buying process
Monday, September 04, 2000 By Dian Hymer
Inman News Features
Did I buy the right house? I wonder if I paid too much? Will I be able to afford the monthly payments? What if I don't like the neighborhood? If you just entered into a contract to buy a home and you're plagued with these, or similar, thoughts, don't panic. You're just suffering from a case of buyer's remorse.
Most homebuyers experience buyer's remorse at some time during their home purchase transaction. Buyer's remorse is an emotional response to the home buying experience that often triggers feelings of anxiety, regret, fear or depression.
Buyer's remorse usually surfaces soon after you enter into a purchase agreement with the seller. But it can occur earlier, perhaps when you see a house you want to buy. If all of the sudden you start talking yourself out of the house you've been searching for, you may have a case of early onset remorse.
Home buying is a stressful experience. It's also a big commitment. The fear of making a commitment, coupled with fear of the unknown, can give rise to feelings of uncertainty. This is a natural response, which, in most cases, will pass.
FIRST-TIME TIP: Don't assign more significance to feelings of buyer's remorse than is warranted. For example, just because you're questioning your decision doesn't mean that you should back out of the deal. In fact, there could be severe consequences if you back out of a purchase agreement just because you've had a change of heart.
The best way to cope with buyer's remorse and diminish its destructiveness is to stay well informed throughout the home buying process. Start by making sure that you know your financial limitations.
Meet with a lender or mortgage broker and get pre-approved for the financing you'll need to complete the purchase. Some buyers can qualify for larger mortgage payments than they feel comfortable paying. Deciding how much to pay for a home should not be based solely on how much a lender says you can afford to pay. You should feel comfortable with the price you pay for a home.
Educate yourself about current market values in the area where you want to live. One way to do this is to look at a lot of property before you make an offer. Ask your agent to let you know the selling prices of homes you see. If you are concerned about the value of a home you're making an offer on, include a contingency in the purchase contract for the property to appraise for the purchase price. Ask your agent to complete a comparative market analysis for you on the property you're buying.
Have the property thoroughly inspected. An inspection contingency should be included in your purchase contract. This may give you a legitimate way out of the contract if there are inspection issues that can't be resolved.
It's a good idea to attend the home inspection. This gives you an opportunity to ask questions. It also helps to put the inspection findings in perspective if you're able to discuss issues directly with the inspector while you're at the property.
Let your agent know that you want to be kept well informed throughout the transaction. The more you understand the process, the more in control your will feel. If you haven't seen the home for a while, and you're feeling uncertain about your decision, ask your agent to make an appointment for you to visit the property.
THE CLOSING: Sellers also experience remorse, sometimes as soon as the For Sale sign goes up. Like buyer's remorse, seller's remorse usually passes with time.
Dian Hymer is author of "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.
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Copyright 2000 Dian Hymer
Distributed by Inman News Features
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