3 Ways To Dodge Buyer's Remorse
We’ve all had the experience of second guessing our decision to buy after the purchase has been made.
Whether it’s the latest smart phone, tablet or a pair of shoes that just didn’t feel right after the first hundred steps, somehow, somewhere the feelings of doubt or regret creep unto us during our moments of solitude when the only voices we hear are our own thoughts.
“Buyer’s Remorse” is the phenomenon where the decision of buying is questioned after the fact and delivery of the product or service has been made.
The word “remorse” itself is quite a strong synonym to describe the level of regret. “Remorse” is usually reserved as an adjective to describe one’s feeling after carrying out an act which results in significant or oftentimes irreversible damage or injury.
But smart phones, tablets, shoes and even cars can be returned or replaced if proven to be unsatisfactory or defective. Perhaps “Buyer’s Regret” would be more appropriate when it comes to refundable items.
Buying property is a different story.
The implications of buying property are wider and far-reaching. Not only is the purchase probably one of the largest you will ever make, but owning property represents a crowning achievement; a milestone in your life.
In a lot of ways a home is a castle; it not only provides you a place to rest your weary head but safety from the elements. Home is not just shelter but security for the family.
Your property is also an investment.
Its value rises over time unlike a car which is another major purchase but is a depreciating asset.
Buyer’s Remorse becomes prevalent in real estate simply because the conditions that exist in purchasing a home are not the same as those for technology, apparel or transportation. You cannot “try out” a house by living in it for a few weeks before deciding to purchase. Determining failure on deliverables also takes time to manifest and accountability is often complex and difficult to prove. Factor in the size of the purchase and its intrinsic value on family then you have “regret” magnified ten times to become “remorse”.
Is Buyer's Remorse A Normal Reaction?
In truth, Buyer’s Remorse is normal and should be expected especially for first-time home owners. As a real estate professional, I would not call Buyer’s Remorse a problem but rather a condition that can be addressed with the combined efforts of the prospective buyer and the agent.
Here are my 3 Tips on Managing Buyer’s Remorse
1. ATTENTION BUYERS: DO YOUR HOMEWORK DILIGENTLY!
Before deciding to even prospect for a house, you should go through a period of introspection or self-assessment. Find a good time of day at a place with ideal conditions to stimulate diagnosis and prepare a list which answers these following questions:
Why do I want to buy a property?
What am I looking for in a property?
Where would I want my property to be located and why?
How will I pay for the property?
Do I have the capacity to pay for the property in the long-term and what is my contingency plan if it all goes pear shaped?
When you are contemplating on making a serious purchase; and nothing will be more serious than buying property, the last thing you need is more pressure. Undergoing a self-assessment or diagnosis will help uncover the underlying reasons for wanting a home. Real estate is a serious investment with major repercussions. You need to be true to yourself before making these big, life-changing decisions.
2. ALIGN YOURSELF WITH A TEAM OF GREAT PROPERTY EXPERTS.
Buyers often look at buying property through filtered lenses because their judgment may be clouded by financial capacity, their ideals, wants or preferences. It is always a good idea to consult with professionals who are acknowledged as reliable, reputable and trusted experts in the real estate industry. Once you’ve identified your team of consultants, sit down with them and draw up a checklist of procedures and guidelines when evaluating a prospective home. These professionals have seen it all and are in the best position to render advice in purchasing the best property to meet your budget and suit your needs.
3. DRAW UP A GAME PLAN PRIOR TO BUYING PROPERTY… STICK WITH IT.
Real estate auctions are an exciting and fun time for me. But unfortunately, I cannot say the same for first-time buyers and onlookers who appear nervous and clueless on what to do at an auction because they have not come up with a game plan or strategy. It is always a great idea to have an auction specialist or professional buyers agent with you when participating at an auction to conceptualize a game plan and more importantly, to take you through the actual process. I had a client who was a bundle of nerves in the days leading to the auction. But as his Brisbane Buyer’s Agent, I was able to moderate his expectations and emotions before the auction went underway. We stayed with the game plan regardless of how the bids were played out. As a result, we came away big winners and the auction became a gratifying experience for him. An auction can get very competitive and if you’re not disciplined, savvy or smart with your bids, you will get blown out of the water.
Buying property can be one of the most challenging experiences in life.
Yes, it can be stressful and the risks are very real which may trigger Buyer’s Remorse.
But if approached with conviction and a real sense of purpose, Buyer’s Remorse will ultimately become Buyer’s Reward.
And that's something to get excited about!