Avoiding Home Buyer’s Remorse
Avoiding Home Buyer’s Remorse
Buying a home is one of the most significant financial purchases of your life, so of course, you may be second-guessing the purchase or experiencing a degree of regret. According to Diana Olick on CNBC, about 44 percent of U.S. homeowners say they have regrets about their purchase. Throughout this article, we will discuss what home buyer’s remorse is and how to avoid it.
What is Home Buyer’s Remorse
Home buyer’s remorse is defined by a psychologist as a type of cognitive dissonance, according to Dena Landon of HomeLight. Landon explains that buyers experiencing remorse tend to be torn between two paths, one path is buying a home and the other path is a choice that could have made them happier. Feelings of doubt and unease are prevalent, and it is okay to wonder if you chose the right path when making such a large investment.
Fading Home Infatuation
There are different kinds of buyer’s remorse people can face, remorse about the home itself, the neighborhood/location, the mortgage commitment, or general homeowner finances. Elyssa Kirkham, on MarketWatch, discusses that it is typical to notice quirks and dysfunctions of a new home after living there for a while. Kirkham goes on to say that it’s natural for the new-home infatuation to fade and that the proper steps to addressing those concerns is to remind yourself why you bought the home in the first place. Some other causes of buyer’s remorse, according to American Family Insurance include spending too much money, concerns about the size of the home, and dropping interest rates which means the buyer could have gotten a better deal had they waited.
Overcoming Buyer’s Remorse
To overcome buyer’s remorse, it is essential to look at the positives and not continue to mull over the negatives. On HGTV you can find some tips to counteract the doubts in a new buyer’s mind. Shannon Petrie suggests looking at the list you made when searching for the perfect home and comparing that list to your recent purchase. As long as the home you bought has most of the features on your list, your doubt will start to naturally decrease. If there are features on your list that are not present in your house, remind yourself why you compromised and bought a home without those features. Perhaps those features would have added significant cost to the home or this home is in the perfect school district so the sacrifice was worth it. The most critical tip is that once you have purchased a home, STOP SHOPPING. Of course, it is tempting to keep looking at what is out there and comparing those options with your recent purchase, but it will likely make you wonder about missed opportunities and question your decision.
Buyer’s remorse is normal and just because you experience this sensation does not automatically mean that you made the wrong choice in purchasing your home! People are wired to worry and question our decisions, especially for one of the most personal long-term investments that we will make. Instead of focusing on the things you are not happy with, focus on the positive. Look at your home wish list and remind yourself why you bought this home in the first place. Stop looking at new homes that come on the market and delete those pesky apps that keep sending you notifications about new listings. Settle into your new home, make it yours, and be proud of what you have accomplished. Taking these steps will allow you to embrace your new home and the doubt will definitely subside.