How to Combat Buyer's Remorse
So you did your research. You looked at several different homes before making your purchase. You investigated neighborhoods and school districts. You made an offer, and—just like that—you’re a homeowner! This should be one of the happiest days of your life…so why do you feel so many concerns after just closing on your home? Did we pay too much? Did the home inspector miss something major that is going to cost of thousands later on? Is this the right house for us? How will we ever scrape up enough to pay the enormous mortgage payments? How can I get out of it?
Well not to worry, what you are experiencing is called buyer’s remorse, and it’s as universal as the common cold. So take a few deep breaths and relax. Life is going to be just fine! Everyone goes through what you are feeling right now. You'll be happy to know that the statistics are on your side: 74 percent of first-time buyers say they like their new home better than their previous residence, and 67 percent of repeat buyers like theirs better.
You're less likely to suffer from buyer's remorse if you have a Realtor you trust who can help you evaluate your housing needs. But the best way to prevent (or at least mitigate) buyer’s remorse is to prepare yourself in advance, long before you ever sign on the dotted line.
First, draw up a pro and con list. We’ve given you one to get you started below.
Advantages of Renting
You can usually move more easily with little responsibility for maintenance and no responsibility for repairs.
Disadvantages of Renting
No tax benefits. No investment in or from the property, No equity is building, Rent payment can increase frequently while you can purchase a home with a fixed interest rate. You have no control of when a landlord might sell the property and you end up having to move.
Advantages of Buying
You enjoy greater stability. Buying usually is a solid investment compared to using your money to pay rent. Your equity builds meaning every month you pay your house payment, you owe less every month while your home value normally rises over time. First home often leads to a better home. Greater individuality in décor/space arrangement. Greater sense of security and fulfillment as a homeowner.
Disadvantages of Buying
You are responsible for property taxes, maintenance and repairs. Possibility of foreclosure if you fail to make your monthly mortgage payment. You can't usually sell a house quickly so you have less mobility than when renting a house.
After you have looked over your list, compile the costs of buying a home, of which there are two types: upfront costs (down payment and closing costs) and ongoing costs (monthly mortgage payment, homeownership expenses, taxes, insurance, etc.) Note that there are mortgage programs that allow home buyers who meet certain qualifications to pay little or no money down. You will need to speak with a mortgage lender to determine what program is right for you.
Finally, when buyer’s remorse hits, remind yourself of why you wanted to buy a house in the first place. Then sit back and enjoy your new home!
Bobby Sutton, Realtor
Weichert, Realtors - Ford Brothers
1406 S Hwy 27, Somerset, KY 42501
Mobile: (606) 492-5169