How to Avoid Home Buyer’s Remorse
You never think buyer’s remorse will happen to you…until it does.
You loved your future home when you signed the contract to purchase, but suddenly, you’re not so sure.
More often than not, buyer’s remorse happens to people who signed a contract too quickly. Considering buying a home is likely to be the most expensive purchase you’ll ever make, it’s imperative that you consider all factors before signing on the dotted line.
What is Buyer’s Remorse?
As the name suggests, it’s feeling regret over something you bought. It’s often used to refer to expensive purchases that cannot be refunded or easily returned – like vehicles or real estate.
At PropertyFox, we have a few tips homebuyers can use to avoid regretting their purchase:
Understand the Area and What It Has To Offer
When buying a residential property, it is essential to understand growth potential. If the area is showing signs of being incorporated into the urban sprawl and of becoming a higher density, higher demand precinct, the value will increase.
On the flip side, if the area is degrading or development has been moved elsewhere, it’s best to avoid it. A good example of this is how the Johannesburg CBD was “relocated” to Sandton some years ago. While there has been some revival of the Joburg CBD since, it’s not developed nearly as quickly as Sandton and other areas close by.
In contrast, places like Woodstock, close to Cape Town’s CBD, has become a goldmine for people who purchased property in the last five to ten years. Once treated cautiously due to its reputation for being a hub of gang activity, regeneration of Woodstock has boomed recently. New developments, close proximity to public transport and the city centre has all contributed to this area’s growth.
Assess What You Need VS What You Want in A Home
A great tip to use when buying a home is to create a list of all the NEEDS and all the WANTS that you’re looking for in a home.
When buying a residential property, it is essential to understand growth potential.
You might not always find a property with everything you want – especially on first purchase. But you should make an effort to find a house that has everything you need.
A home buyer who determines what they need versus what they want before looking at homes significantly reduce the chance they will experience home buyers’ remorse. Giving your estate agent this list will also help narrow down the search.
Check Your Finances and Stick to Your Budget
One of the main reasons that buyers regret their home purchase is unexpected costs. Buyers need to calculate how much they can afford, considering all the associated costs that come with owning a property – from maintenance to insurance.
Having the home inspected will also give buyers an idea of the type of repairs that they can expect so that they can budget for this beforehand.
Don’t Make an Offer After One Visit
Don’t make an offer after just one viewing. In most cases two or even three visits are essential. Even better – get a second or third pair of eyes to also investigate the property. Spreading out these visits can also help you cool down and not act impulsively. This is especially important if you are a first-time buyer who might be very enthusiastic about a property when you’ve just started looking.
Avoid being wooed by superficial additions like granite tops or underfloor heating. While these can be great additions, be wary of them covering up some less desirable aspects of the property.
Patience Could Be the Key to Your New Home
A frequently asked question from potential home buyers is, “how many homes should I look at before buying one?”
While there is no definitive answer to that question, most home buyers will know when they find their “dream home.” If you have any doubt over whether or not to sign an offer to purchase, rather stay patient.
Prepare yourself ahead of time. Know that you’ll probably experience these feelings at least to some extent after you make an offer.
The biggest tip on how to help avoid buyers’ remorse is to make sure you choose the best real estate agent to help you with your home search.