WAYS TO AVOID HOME BUYER'S REMORSE - PART 1

BY DEREK RILEY

When your clients are entering the real estate market, buying a house can be a great way for them to grow their net worth and invest in their future. With the rapid rise of rent costs showing no signs of slowing down, it may be a good idea for them to purchase a home before the interest rates get even higher.

When jumping into a booming housing market, it’s easy for your clients to get caught up in the adrenaline rush of bidding wars, especially when the home in mind is priced right. Putting offers in during a tight market makes it easy to max out their budget and end up with a home that they either don’t like or ends up costing them more money than they had imagined. How do you help your clients avoid home buyer’s remorse? It might seem like common sense, but sometimes it helps to go back to the basics.

1. DON’T SKIP THE HOUSE INSPECTION

In a seller’s market, often home inspections are avoided to beat other offers and speed up the home sale process. However, foregoing an inspection can pave the way for buyer’s regret house woes. In fact, many homeowners who took this step during the pandemic and purchased houses sight unseen are now regretting it.

Sometimes getting a home inspection just isn’t doable—we get it. If this is the situation, make sure your clients have enough money on hand to fix any issues that may be uncovered once they move in. A home warranty is always a great idea to fill in the gaps to repair or replace items in the home without having to empty the emergency funds. Did you know that 33% of home buyers can’t afford a $1,000 emergency out of pocket expense? It also costs an average of $4,886 to care for a singlefamily home each year.

2. ALWAYS VIEW THE HOUSE IN PERSON

Ten years ago, this concept would seem like a no-brainer: Who is going to invest hundreds of thousands of dollars into something they haven’t seen with their own two eyes? Nowadays, modern technology like video chatting and Zoom may make it feel less risky.

While virtual tours are convenient, especially if your clients are

3. DON’T LOOK AT HOUSES AT THE TOP OF YOUR BUDGET

Perusing real estate apps is a great pastime for all of us, even if we’re not in the market for a new home. It’s fun to look at photos of seaside mansions and mountain escapes, dreaming of living in one after hitting the lottery. Once your clients start looking seriously, they should set filters to avoid seeing something they can’t afford. This may save some heartbreak and help them avoid house buyer’s remorse. Looking at houses at the top or over their budget will accomplish one of two things:

• Your clients will either buy a house they’ll grow to resent because it eats all of their paycheck, or

• All the houses in their price range will look small and unattractive in comparison.

They are much better off setting the filters on the real estate apps at a lower price than their budget and telling you, their real estate professional, that they don’t want to go over a certain amount. It will help ensure they don’t regret buying a house they can’t afford.

4. WRITE DOWN THEIR DEALBREAKERS

When house hunting, it’s easy to become overwhelmed. After seeing house after house, your client may become impatient and decide to settle on a few things. However, if they let too many must-haves go, they may experience buyer’s remorse house anxiety. To avoid this, have them make a written list of the dealbreakers during your buyer’s consultation. Here are some things to consider:

• Budget

• Work commute

• School district

• Number of bedrooms

• The size of the backyard

• Basements, garages & attics

• Architectural style

• Feasibility of future remodels

Have them prioritize the items on their list so that when you are viewing a home with them, you can reference the list and remember which items are most important to them.

Derek Riley, Market Manager Cell: 480-286-1996 • Email: derek.riley@ahs.com