Property buyer’s remorse. How to skip the regret and seal the deal

Unlike other items purchased that you can easily return if you are not satisfied, property cannot simply be returned. Purchasing a property is a significant decision with long-term financial implications. It requires a commitment of at least 20-30 years, and should not be taken lightly, says Samuel Seeff, chairperson of the Seeff Property Group.

An offer to purchase is a legally binding document, and breaking the contract can incur significant financial penalties, including liability for the estate agency commission. Once the property is transferred into your name, you take full ownership. Needing to sell it soon after purchasing it might result in a financial shortfall due to the substantial upfront costs that would have incurred.

It is therefore vital that prospective buyers conduct thorough research and are certain about their decision before making an offer. Seeff provides some vital pointers, and by following these, buyers can make informed decisions and minimise the risk of buyer’s remorse when purchasing property.

Define your requirements. Start by clearly defining what you are looking for in a property and the maximum price you can pay. Ensure that you can afford the purchase price with the costs factored in, and that you are able to secure a home loan. Knowing your budget and requirements will allow you to search for properties with confidence.

Consider the reason for your purchase. If you are buying a property for personal use, the criteria may differ compared to if you are looking to invest in a rental property or second home. While you will consider your lifestyle needs for an own-use property, you will need to consider the financial case for a rental investment.

Focus on financial preparedness. Budget correctly to ensure you can comfortably afford the property. It is always best to buy below your means to avoid future financial difficulties, especially if you are a first-time buyer. If buying a fixer-upper, be prepared for renovation costs and potential challenges and delays.

Research the area and prices. You should start by checking out the area and evaluating the prices, especially if you are not familiar with the neighbourhood. Spend some time in the area to assess the traffic and other factors which might lead to regret. Travelling time or inconveniences can impact the quality of life and are important considerations.

Inspect the property. Always view the property yourself and conduct a thorough walk through before making an offer. A condition of property report should be available so that you can familiarise yourself with any issues. Check the plans and that renovations or additions are compliant.

Beware of deals too good to be true. If a property price seems too low, do thorough research to understand why. It might be a quick sale, but it could also indicate underlying issues with the property or area. Always deal with a credible real estate agent with a valid FFC (Fidelity Fund Certificate) to ensure that all is above board.

Dealing with regret. If you regret your purchase, but cannot sell the property, you could always consider alternatives such as renting it out. This might help manage the financial burden and make the best of the situation. After a period, you could then consider selling the property, or you might end up keeping it as an investment.

Issued by Gina Meintjes