It’s an exciting time when you buy a home, whether it’s your first one or your third one. Because buying a home is a huge milestone and an emotional process, buyers sometimes lose sight of some significant factors. Below are some critical topics to keep in mind to ensure you’ll enjoy your new purchase rather than face buyer’s remorse after your name is on the deed.
Take into Account All Your Expenses
One of the top causes of buyer’s remorse in real estate is financial burden. Buyers face regret when they buy at the peak of the loan amount for which they qualified without considering other expenses. Maintenance of the lawn, unexpected repairs, higher water and heating bills, and other similar homeowner expenses need to be figured into affordability. Homeowners are advised to have enough cushion for maintenance upkeep and unexpected repairs on things like furnaces, air conditioners, water leaks, and gutters. Make sure you crunch the numbers. It might be better to stick to a lower price range if you know it will offer you a better financial quality of life in terms of your monthly bills.
You also should know how much it will cost you to purchase your home. Assuming you are using a mortgage, there are plenty of fees you can expect, such as home insurance, title insurance, points on your mortgage, the down payment, mortgage insurance if applicable, title company fees, and recording fees. Your lender will provide a Closing Disclosure just prior to your Closing date that details your purchase costs. However, it’s advisable to estimate these costs with your lender prior to entering into a contract rather than waiting to see them a few days before Closing.
Prioritize Needs Over Wants
Every buyer has a list of what features they want in home. But they often haven’t distinguished what they truly need from what they want. A list of needs and wants often includes things such as:
• Number of bedrooms
• Number of baths
• Number of garage spaces
• Square footage preference
• Style of home (ranch, two-story, colonial, etc.)
• Floor plan
• Upgraded countertops and fixtures
• Newer windows, roofing, and HVAC system
Always focus on your needs first and treat wants as your bonus. Buyers who get caught up in wants while sacrificing needs often end up regretting their decision. For example, you needed four bedrooms for your family. But you decided three would be enough because the house you picked had lovely French doors and crown molding throughout the house. Later it’s clear that siblings sharing a room wasn’t a great idea for your kids. You wish you had that extra bedroom so that everyone had their own private domain. The bottom line is that you need to stick to your higher priority items that meet your family’s needs and be willing to sacrifice lower priority ones.
Consider the Location
Location is often the first need buyers consider. Usually a specific school district or a particular part of town that appeals to you dictates where you want to live. But sometimes home buyers don’t know for sure where to commit. A few things to keep in mind include proximity to work, highways, parks, schools, and railroad tracks. For example, some people don’t like driving more than ten minutes to get to the highway they use for work. Others willfully accept a longer commute in order to buy a newer, more spacious home outside the city. As a buyer, you also want to make sure your Realtor® helps you analyze the value of homes near the neighborhood. Buying in an area facing declining values can lead to buyer’s remorse.
Make Sure the Purchase Contract Protects You
When you write up an offer on a home, make sure your Realtor® is looking out for your best interests. There are several contingencies in a purchase contract that protect buyers. Home inspection terms and mortgage and appraisal approvals are some of the more common ones. Carefully follow timelines specified for home inspection so that you can easily be released from the contract if something found during inspection makes you leery to go through with the purchase. Read every word of the contract before you sign it and have your Realtor® go over it with you.
Choose a Reputable Agent and Ask Questions
Choose an agent who you feel comfortable with and confidant in his abilities to represent you. During the home buying process, ask your Realtor® plenty of questions. A huge part of his service is his expertise. If your agent doesn’t know the answer to something, he’ll point you to the proper resource. Agents who have spent time with many kinds of buyers can aid you in your decision making so that you will avoid regret.