8 Tips for Beating Buyer's Remorse
If you’re having second thoughts about the house you just bought, you’re not alone. A recent study by Clever Real Estate discovered that 60% of recent home buyers had regrets about their new home.
What causes buyer’s remorse and what can hopeful house hunters do to avoid it? Here are eight tried-and-true tips for beating buyer’s remorse.
1. Stick to Your Budget
Before you start the home-search process, you'll need to determine exactly how much house you can afford, including what you'll pay in closing costs and agent commission. Once you determine your upper limit, stick to it.
No matter how high your budget is, you’ll see a lot of homes that are just over your upper limit. Resist the urge to bust your budget. The No. 1 reason for buyer’s remorse is spending too much money, according to the Clever study.
Overpaying for a home isn’t just a one-time mistake. It’s one you’ll revisit every month when you have to pay an outsized mortgage.
2. Consider Maintenance and Hidden Costs
There’s nothing like a leaky roof, a flood-prone basement, or peeling paint to turn your new home into a source of anxiety and regret. A home that requires a lot of maintenance is a leading cause of buyer’s remorse, especially among first-time homeowners. Almost one-third say they regret buying a home with expensive upkeep.
The Clever study found that homeowners spend an average of $15,405 each year in addition to their mortgage payments on miscellaneous home-owning expenses, such as home repairs, homeowners insurance, and property taxes. That breaks down to more than $1,000 each month.
The best way to avoid burdensome maintenance costs is to prioritize newer homes in good condition and to pay for a thorough home inspection to make sure there are no hidden problems.
3. Know You Wants and Needs
When buyer’s remorse stems from the home's physical features, it’s often because homeowners lost sight of their priorities during the search.
When you’re looking at homes, make a list of features that you’d like to have and features that you need to have. The features on the first list are negotiable. The ones on the second list are not.
You can probably get over the lack of an outdoor jacuzzi, but if you have four kids in a house with only two bathrooms, you may be in for some serious buyer’s remorse.
4. Spend Time in the Area
When buyers focus too much on the home and not on the surrounding area, it can lead to buyer's remorse. When you buy a house, you’re buying into the neighborhood as much as you’re buying the property.
If the area’s a bad fit, it doesn’t matter how ideal your home is. Regret will soon follow. In fact, 15% of buyers wish they'd known more about their neighborhood.
Before you submit an offer, thoroughly investigate the area. Talk to neighbors about the pros and cons of the block. Visit the home during different times of day to see how the character changes after school lets out or late at night on weekends. Visit the grocery stores, gyms, and schools you’d frequent if you lived in the neighborhood.
Be sure to practice your commute to see how long it will take to get to work.
5. Don’t Rush Your Search
It can be a challenge in today’s competitive market to take your time and be methodical when you’re looking for a home. While sellers can take the time to stage their home just right and find an agent that charges the lowest commission, buyers must race against the clock — and each other.
However, making a rushed decision that compromises your priorities is one of the most common reasons you may purchase a home you'll later regret. If your home search gets frustrating or stressful, pause for a week or a month and come back with a clear head. Don’t let yourself be forced into a decision.
6. Delete Your Real Estate Apps
Once you’ve bought a new home, end your home search — especially if you're having second thoughts. One of the surest ways to give yourself buyer’s remorse is to continue looking at new listings once you’ve already committed to your home. There will always be homes that are larger, more luxurious, or more of a bargain than yours, but dwelling on what-ifs will only increase your dissatisfaction.
7. Trim Your Budget
So much of buyer’s remorse stems from financial stress. High mortgage payments and inflated homeowner expenses — such as utilities, insurance premiums, maintenance, and property taxes — aren’t usually negotiable. But the rest of your budget is.
Give yourself some financial breathing room by reducing costs, such as canceling cable subscriptions, cooking instead of eating out, or signing up for apps that give you cash back for everyday purchases.
These measures can make your mortgage payments seem a lot more manageable. If you’re not sure where to start, there are several very effective budgeting apps that can help you cut costs.
8. Remember Your Home Is a Means, Not an End
If you’ve done all you can to have a healthy perspective and you still have buyer’s remorse, remember that you’re not tied to this home forever. Optimal outcomes are as rare in home searches as they are in the rest of life.
The important thing is you’ve taken an important step in your real estate journey, and you’re building long-term wealth through equity. Learn the right lesson from this purchase so you don’t make the same mistakes next time.
