How to avoid home buyers’ remorse after your buy
Buying a home is one of the biggest decisions you will likely ever make, and it's perfectly natural to feel some anxiety once the deal is done. For many buyers, however, those post-sale jitters are just the beginning of a much bigger problem, and can quickly spiral into full-blown buyer's remorse.
“Buyer’s remorse is a very real problem in the property industry,” says Bill Rawson, Chairman of the Rawson Property Group.
“There are studies that show as many as a quarter of all American homeowners regret the purchase of their homes, and I wouldn’t be surprised to see similar statistics in other countries around the world, including South Africa.”
According to Rawson, the tragedy of the situation is that home buyer’s remorse is avoidable.
“The root of the problem is that a lot of property purchasers are making their decisions impulsively these days,” he explains.
“There are plenty of reasons why – competitive markets, fast-paced sales environments, social pressures – but the end result is inevitably a purchase that hasn’t been properly vetted, and may not be what it seemed at first glance.”
So how does one ensure that a purchase ends happily, rather than steeped in regret?
“The first thing any prospective buyer should do is take a good look at their personal circumstances, with an eye not only on the present but also the next five to ten years,” says Rawson.
“Buying a home is a long-term commitment, and you need to be sure the property you choose will be able to accommodate potential lifestyle changes. Things like getting married, starting a family or changing jobs can affect what you need from a home, so it’s important to consider not only where you are now, but also where you hope to be in the future.”
Once you have a good idea of what you want from a property, Rawson recommends looking into how much you can afford to spend.
“If your budget won’t get you anywhere near the kind of home you’re hoping for, it might be better to wait a while and rent until your circumstances change,” he says.
“You do need to be realistic, of course – nobody gets a foot on the ladder by aiming for the top rung – but settling for a property that you’ll outgrow in a year or two is a recipe for regret.”
Rawson also strongly recommends erring on the side of over rather than under-budgeting for a purchase.
“Never buy at the maximum of your spending ability,” he says.
“You can’t predict how interest rates will change over time, and finding yourself unable to afford your bond repayments will tarnish the shine on any new home. You will also want to be sure you can afford the ongoing costs of home maintenance and unexpected repairs – nobody enjoys watching their dream home go to rack and ruin because they can’t afford the upkeep.”
Of course, knowing what you want and what you can afford is only half the battle. Finding the right home in the right neighbourhood, is just as important if you’re going to avoid making a purchase you regret.
“I always suggest buyers work with an estate agent to find a home, rather than simply looking online,” says Rawson.
“The benefits of this are twofold: firstly, many of the best properties sell before they are ever publicly advertised and you’ll only hear about them if you have an agent looking out for you. Secondly, a good agent will be able to give you a lot more advice and neighbourhood information than you could find out on your own.”
Rawson urges buyers not to discount the importance of getting to know a neighbourhood before making the decision to buy. “People put huge emphasis on the ambiance and amenities of the property itself, but often forget to pay attention to what’s around it,” he says.
“Noisy neighbours, busy roads, a lack of parks, schools, shops and entertainment can all detract from your ability to enjoy your property, no matter how wonderful the house itself might be.”
Rawson suggests doing several “drive-throughs” of any potential neighbourhood, at various times of day, to get a realistic idea of the true character of the area and avoid nasty surprises once you move in.
Speaking of nasty surprises, Rawson also stresses the importance of a professional home inspection.
“When a property is under multiple offers, buyers can be tempted to forgo a home inspection to improve their chances of winning the bid,” he says.
“This is, quite simply, asking for disaster –unexpected defects are one of the most common causes of buyers’ remorse.”
“The most important thing to remember,” Rawson concludes, “is that a happy buyer is an informed buyer. By knowing exactly what you want, what you need, what you can afford and what you’re getting, you should never have to worry about buyers’ remorse.”
