8 Effective Strategies to Prevent Home Buyer’s Remorse

Most of us have experienced buyer’s remorse at one time or another. But it’s one thing to regret a sweater you rarely wear or an appliance you later realized you didn’t really need. It’s quite another to drop tens of thousands of your savings on a down payment for a home, take out a mortgage, and then regret the very roof over your head.

Fortunately, there are ways to avoid buyer’s remorse when it comes to homeownership. It boils down to knowing what you want, house hunting methodically, and doing your research to avoid surprises after you have closed on a home. This article will further unpack these tips to keep buyer’s remorse strictly in the realm of the hypothetical.

What Is Buyer’s Remorse?

Buyer’s remorse is straightforward: It’s the feeling of often intense regret after making a purchase—especially an expensive one.

In the context of homeownership, buyer’s remorse afflicts homeowners who feel like they have gotten in over their heads with a new property or failed to choose the right house to call home. There could be several reasons for this:

• Financial anxieties. A major cause of buyer’s remorse among homeowners comes down to finances. After the down payment, closing costs, and so on, home buyers might feel strapped for cash. The mortgage payments, especially when combined with homeowner’s insurance costs, home maintenance expenses, and property taxes, may take new homeowners by surprise, exceeding their expected budget and limiting month-to-month savings and recreational spending.
• Neighborhood disappointments. Sometimes homeowners just don’t like a neighborhood as much as they thought they would. Perhaps the street traffic is worse than they anticipated, the neighbors are problematic, or there are concerns about safety or crime. Any number of community issues could come to light that make homeowners wish they had settled down elsewhere.
• Surprise repairs. Another common cause of buyer’s remorse is the discovery of numerous problems with a home that are costly to fix. If homeowners hadn’t anticipated moving into a fixer-upper, a new home can feel like a money pit. If you are surprised by foundation, roof, plumbing, or electrical issues shortly after moving in, who can blame you for feeling the sharp pang of regret?
• Lifestyle incompatibility. Buyer’s remorse doesn’t necessarily set in immediately. Homeowners might feel the sensation months or years later if their lifestyle changes and is no longer compatible with the home they recently purchased. For example, a new addition to the family or growing kids who need more space could make a family feel as though they didn’t purchase a large enough home at the appropriate time.
• Missed opportunities. The fear of missing out is a consideration as well. Maybe a homeowner settles on a particular home only to discover that a dream home comes on the market months later. Or someone signs on to a high-rate mortgage, but then rates come down a year or two later. Or the housing market takes a dip and a newly purchased property depreciates in value. These are all frustrating circumstances that could make a homeowner regret a purchase, or at the very least regret the timing of it. 

Effective Strategies to Avoid Home Buyer’s Remorse

Life has plenty of curveballs to throw your way, but you can get ahead of many surprises with a little forward thinking. Here’s how to avoid buyer’s remorse in real estate.

1. Don’t skip that home inspection—and demand a thorough one.

Neglecting a home inspection is a terrible idea. Don’t pass on it in an effort to save a few bucks or expedite a home sale. An inspection is imperative because it can uncover major structural issues that can influence your decision on whether to proceed with a real estate purchase. Sometimes the issues might be significant enough for you to walk away. Sometimes you might be able to negotiate a lower price with the seller, or get the seller to repair the problem ahead of closing. Whatever the case, a quality inspection minimizes the element of surprise.

And “quality” is the operative word there. Do your research and find a qualified, competent, thorough inspector. It’s a good idea to arrange for the inspection yourself instead of deferring to the seller, even if the seller offers.

2. Don’t overextend yourself financially.

Homes are expensive, especially these days. And remember that the appraisal figure isn’t the full picture. There are closing costs, insurance premiums, and taxes to consider. 

Map out all the associated costs, determine your approximate monthly expenses, and find a home that is well within your budget. If you’re investing in a new construction, work with reputable experts for tips for building a house on a budget.

3. Demand home warranty protection.

Homebuyers should always request a home warranty when buying a new home. Active protection can ensure that a significant home system or appliance issue will be repaired correctly and affordably, protecting you from out-of-pocket expenses.

In many cases, buyers can have warranty coverage transferred to them by the sellers or realtors. Buyers can also reach out to warranty providers, such as Liberty Home Guard, independently.

4. Think through what you need in a home—and what you don’t.

Before you hunt for a home, outline what you’re looking for. How many bedrooms do you need? Is one full bath enough? Is central AC a necessity or just nice to have? Do you need to be walking distance to markets and shops? 

Write down your needs and expectations, and not just in one session. Return to your list over the course of several days or weeks until you have adequately captured your needs.

5. Examine the property in person.

Never buy a house sight unseen. Attend open houses and request subsequent visits for homes you are interested in. Inspect every room and closet. Examine the attic, basement, and utility room. Check the windows, doors, faucets, cabinets—check everything you reasonably can.

6. Be wary of cheaply flipped homes and fixer-uppers.

A fixer-upper can be enticing because of the low upfront cost, but be cautious unless you have done your research or are experienced in home remodeling and renovations. Repair costs can quickly balloon, especially if new issues are uncovered as work progresses. 

Also be skeptical of houses that have been recently flipped for a quick profit. Some unscrupulous flippers use cheap materials or cut corners, so what looks nice today might hide tomorrow’s expensive headache.

7. Pay attention to the housing market.

Keep tabs on the national and local housing markets and mortgage trends while you hunt for a home. The best time to buy or sell a home may be hard to pinpoint, but you might think twice about buying if home prices are at all-time highs or if the Federal Reserve has signaled rate cuts in the next year.

8. Explore and research the neighborhood.

Remember that you’re not just investing in a home; you’re investing in a neighborhood too. Drive or walk around town to get a feel for the place if you’re moving from a different area. Is there easy access to the stores you expect to frequent on a regular basis? If you have kids, are the schools up to your standards? 

Ideally, you can explore the area at different times of day or in different weather conditions to get a feel for traffic patterns and other circumstantial situations.

How to Deal With Buyer’s Remorse: House Remedies

So what if you already regret the home you’ve purchased? Don’t fret too much. You always have options.

Determine the root cause of your frustration. If it’s financial pressure, rework your monthly budget. If it’s home repairs, get some input from local contractors and take the triage approach—that is, prioritize the repairs and tackle them sequentially over time. You might also find warranty coverage to be a confidence booster. While you attend to ongoing repairs, you can rest assured that your functioning systems and appliances are protected, so if they go too, your warranty provider can have them quickly repaired or replaced.

The Power of Home Warranties in Real Estate

Buyer’s remorse is an unfortunate fact of life, but there are ways to keep it at bay. If you’re buying a home, don’t let yourself be bullied or pressured into anything too quickly. Take your time, do your research, and work within your budget. And be careful to not overlook the incentives of home warranty coverage. A home warranty can prevent you from hemorrhaging money when systems or appliances malfunction, ensuring your continued satisfaction and confidence in your real estate decision.

Learn more from the Liberty Home Guard team by calling (866)-983-0874.