WAYS TO AVOID HOME BUYER'S REMORSE - PART 2

BY DEREK RILEY

Moving on to part 2 of ways for your clients to avoid home buyer’s remorse, I’ll reiterate that sometimes it helps to go back to the basics. Today, we’ll focus on:

• Fixer-uppers, what to consider, and what to look for to make sure your clients are protected

• How to determine if a home has been flipped and hiring the right inspector to check their work

• The basics of a home warranty and how it can protect your client’s budget

• Always having your clients pay attention to their instincts

LET’S JUMP IN!

5. BEWARE OF FIXER-UPPERS.

If you have clients that been on the path to homeownership for a while and still haven’t found their dream house, they may be considering a fixer-upper home. Before buying a house that needs remodeling, it’s important for them to consider a few facts to avoid home buyer’s regret.

Construction companies are short-handed. Like many businesses after the pandemic, the construction industry has been hit with a major workforce shortage. That means the time it takes to finish a home renovation project may increase.

Materials are expensive. Building materials are pricey. For example, lumber prices have almost tripled since August 2021. Even though your clients may have saved money by buying a fixer-upper, building materials may end up costing them more in the long run.

Many materials are unavailable or on backorder. Due to supply chain issues, some building materials may not get to your clients for a while, which means they could be waiting for both materials and labor.

Buying a fixer-upper can allow your clients to transform the property into the house of their dreams. Just make sure they are aware of the potential pitfalls before putting in an offer.

6. KEEP AN EYE OUT FOR FLIPPED HOMES.

Are your clients wondering how to avoid buyer’s remorse as a first-time homebuyer? First, make sure they are aware of the signs that a house has been flipped. When looking for real estate, study the selling history. It might be a flip if it was bought a year ago and put back on the market.

Not all flipped homes are bad; however, their quality and craftmanship can vary wildly. The quality of a flipped home depends on the flipper’s skill, techniques, and ethics. If your clients decide to invest in a flipped home, make sure they hire a well-reviewed inspector with a lot of experience, and make sure they take action if the inspector recommends a specialized inspector for a follow-up.

7. PROTECT YOUR CLIENTS WITH A HOME WARRANTY. What is a home warranty? It’s an affordable investment your clients can make to help with the costs of repairs on systems and appliances. Unlike homeowner’s insurance, a home warranty helps protect their budget when home systems and appliances break down due to normal wear and tear.

Investing in an American Home Shield® home warranty can protect your client’s budget and help them avoid home buyer’s remorse. Check out our pricing and plans at pro.ahs.com for more details.

8. PAY ATTENTION TO YOUR INSTINCTS.

When your clients are in the homebuying process, always have them trust their gut. A little bit of stress is expected when making such a large purchase, but if something is nagging at them, let your clients know it’s okay to take a step back and reassess.

In a competitive real estate market, taking too much time to put in an offer can mean losing out on a property. However, rushing into a home that doesn’t feel right isn’t the answer. If your clients are in a situation where they’ll be without housing soon, they might have to make sacrifices. But, if your clients have time and a roof over their head, have them listen to their instincts and pass on homes that give them a bad feeling, are too pricey, or aren’t filling them with excitement.

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