Avoid Home Buyer's Remorse

You finally bought the home of your dreams. Now the doubts creep in. Did we get the best price? Was this the right house? Should we have done this? So much debt, so much doubt.

In a recent Trulia survey, 44% of homebuyers in the US have some misgivings about their home or the home purchase process. A home is most likely the most expensive item most of us will ever buy and it can’t be returned or refunded like most other items purchased. Having regrets about a home purchase is called buyer’s remorse.

The best way to eliminate buyer’s remorse is to reduce doubts by doing lots of research prior to purchasing a home. Here are some tips to help make your home buying experience doubt free:

1. Even before you go look at homes, make a list of wants and needs. Prioritize them so the most important quality is first and so on. As you view homes compare them to your list. Make sure that when you do select your home it has most of the qualities you are looking for. Know that no home will be perfect but if it has most of your wants and needs, and more than any other home you have seen, that will put your mind at ease.

2. Do your homework when it comes to lenders and loans. Research different types of loans. After you find a lender you trust ask a lot of questions. The lender may recommend a loan they think is right for you but ask why they chose it and ask for comparisons with other loans they offer. Some options have low down payments but the monthly payments are higher. Depending on your credit score the interest rate will change. See if there is anything you can do to get the best rate.

3. Don’t forget to factor in all of the expenses involved in buying a home. Inspections, closing fees, moving costs, and furniture all add up. Be sure to budget for everything included in your purchase. Also factor in utility costs, any HOA dues, insurance and property taxes you will be paying once you are a home owner.

4. Speaking of HOA, if you are buying a condo or home in a planned unit development be sure to carefully view the Home Owner Association documents before you purchase a home. You want to avoid significant jumps in cost by looking at their budget and financial reports. Talking to neighbors is a great way to get information about an HOA.

5. Check the surroundings. You may love the open space behind the home you choose but you want to be sure it will not become a shopping mall in the future. Go to the planning department to find out what the parcels around yours are zoned for and if there are any plans in the works for large projects that might negatively affect you.

6. Read the Natural Hazard Disclosure you will be given during escrow. This is a large document required for all home purchases in California. In it you will find out if the home you are buying is in a flood zone, earthquake zone, liquefaction zone, etc. If the house is located in a flood plain it may require extra insurance and that will drive up the cost of homeownership.

7. Once you have chosen the house that meets most of your requirements and have decided to move forward with the purchase, do not look at other homes online. It may be tempting but resist the urge.

8. Do not take all opinions to heart. Family and friends are always eager to give advice and share their opinion. Only you and your lender know your unique situation and what is right for you.

Purchasing a home is a major life decision so it is normal to be nervous about it. With proper preparation you can avoid the cold feet and a case of buyer’s remorse.

Source: Sacramento Bee