What is Buyer's Remorse and How to Avoid It?
Have you ever purchased something and then immediately regretted purchasing it? If, so than like many other people you have experienced buyer's remorse. It's important that you don't have buyer's remorse for a $300,000 home purchase. Many of my clients get so desperate (or at least they think so in their own mind) to buy or sell that their emotions get in the way of their logic. My job as a real estate agent is to keep logic and experience at the forefront and be able to communicate to them why they should buy or sell and at what price.
Here are 5 simple ways to avoid buyer's remorse:
1. Get a great highly recommended real estate agent and pick their brain on the market and timing of a purchase and potential pitfalls that people like yourself go through when purchasing a home. If you are not blown away by the first real estate agent interview a couple others. The real estate agent is the full time professional who deals with people just like you looking to buy a home.
2. Get a great mortgage broker. Make sure to ask him or her lots of questions and determine what you need to do in order to pay down your loan quicker. Ask if there are penalties for doing so. You need to partner with a broker that understands your goals and can help you should an emergency happen like the loss of a job. It's not always just about interest rates there are other factors to consider such as prepayment penalties and loan length and terms. Mortgage interest and how that tax deduction could impact your overall income.
3. Fortune tellers. Nobody can predict the future of what will happen with house pricing and income so be reasonable. Stay within budget. Factor for contingencies of losing a job or the real estate market dropping prices and know what you are dealing with before so you can make an educated purchase. Utilise your real estate agent, mortgage broker and inspectors to their fullest.
4. In this environment it's easy to get involved in multiple offers and into bidding wars. When you beat someone on price and are able to get the home you never win. You end up paying more for the home than what it's worth. Try to avoid multiple offer situations if at all possible. To many people however believe this is totally worth for them because they got exactly what they wanted where they wanted it and it was only x amount more. For others they let the market rush them into a quick decision based upon external variable and many other would get buyer's remorse because they feel like they overpaid.
5. Be planful of the home details before purchasing. Size is important. Know how big your furniture is, know why you want a certain amount of bathrooms, know what kind of repairs you are willing to take on and what type you will just need to walk away from. Be mindful of how good the schools are that are located around you, know how much parking you will want and what sort of walkability you need if any at all. Once you decide that you love a home for all the right reason then take a contractor with you on the second visit to determine if there are any repairs you are not thinking of that they see. The more professionals you involve in your purchase the better reasoning and logic you will be provided thus helping you to make a better decision that you can stand by.
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