Having Second Thoughts...
...about buying your house?
Are you having second thoughts about following through and closing on that house you made an offer for? Don’t worry-it’s nothing new under the sun. In fact, it would be unusual if you didn’t (to some degree) experience what many Real Estate people call “Buyer’s Remorse (BR).” BR occurs when a home buyer has second thoughts about following through to the close of the transaction, usually because of a complex of conflicting thoughts and emotions.
For example, Buyers may get so-called ‘cold feet’ for any of the following reasons:
1. They are uncomfortable with the price of the property. It may be that Buyers really love the property but are unconvinced that the price reflects it’s real value. This produces the feeling that they are being unfairly taken--and this feeling only increases as the deal gets closer to the end. Even if their Realtor demonstrates that the price is a fair market value, the Buyer’s gut feeling–right or wrong–may feel otherwise.
2. They are uncomfortable with their financing. This problem is only compounded by the immediate access people have to hundreds of different financing options, thanks to the Internet and TV. To the normal Buyer, it seems like the financial grass is always greener on the other side of the fence. And if the monthly payment winds up a little higher than the Buyers were hoping for, the feelings of confusion and ‘being taken’ are compounded. Any lack of communication on the part of a Loan Officer or agent may be enough to set Buyers running.
3. They are listening to many different (and confusing) opinions or advisors, most of whom are totally unqualified to give Real Estate advice. This may be the most challenging obstacle a Buyer has to overcome in order to get into a new house. In many cases there is a constant stream of what all too often qualifies as ‘Balderdash’ constantly coming from family, friends and co-workers who claim that ‘they got a better deal’ or a better interest rate when they purchased their house; or they contribute to the multitude of real estate horror stories going around on the street, many of which are untrue. This sea of voices is enough to frighten any Buyer, if they are taken seriously. The truth is that the Real Estate industry and market is constantly changing, and Buyers need someone who is working in that market on a daily basis to give them the accurate information they need.
4. They are uncomfortable with the property itself. Perhaps an inspection raised questions about the condition of the property. Maybe they just changed their mind about the price, or location, or even the ‘look’ of the property. The fact is, people sometimes change their minds about the smallest things at the oddest times.
5. They are uncomfortable with making a serious, long-term commitment. And buying a house is exactly that. Many have likened it to marriage–you are getting married to a long-term debt, and it makes them nervous. This is why buying a house is considered to be a serious transaction, one of the biggest life has to offer.
6. They are not comfortable trusting anybody. So many people have been taken advantage of at some point of their adult life that they are suspicious of anybody involved with the sale of anything. When they go to buy a house, this fear or mistrust of sales personnel often transfers over to their loan officer or Realtor. This can cause Buyer’s Remorse when problems arise. Such mistrust may or may not be justified. If it is not, then this unwarranted fear or mistrust can sometimes set back or even kill a real estate transaction that is actually much to the advantage of the Buyer.
There may be other reasons why Buyers experience ‘Buyer’s Remorse.’ The above concerns are the most typical, but Buyers should also be aware that following through these feelings with actions that delay or cancel a transaction may not turn out to be either an advantage or a very pleasant experience in the end.
So what is the answer to the problem of Buyer’s Remorse? Here are some suggestions:
1. Be certain. Buyers should have their mind made up about a number of issues before they make an offer for a house. They should be pretty certain that this is the house they want. They should be aware of (and have approved of) the critical details of their financing. The more information Buyers can be settled on, the greater the Buyer’s level of comfort will be with the commitment, and the lower the chance of Buyer’s Remorse setting in.
2. Ask what you are afraid of. If Buyers find themselves with cold feet in the middle of preparation for closing, they should closely examine what it is they are really worried about. Is it the house that they don’t like? Is it the financing, or the monthly payment? Is it fear of commitment? Once they determine exactly why they feel this way the difficulty be resolved. A determination to overcome the fear with problem resolution and to proceed to close on the deal will get them the key to their new home.
3. Find someone to trust. Buyers are going to have to trust somebody to buy a property. They should find a Realtor and a financing agent they can trust and who are sharing accurate information with them to help them understand what they must do. When the level of trust is high with the people you are working with, Buyer’s Remorse has no chance to cause trouble.
4. Be forewarned. The old adage “To be forewarned is to be forearmed” is certainly true here. Buyers who are aware ahead of time that they may suffer Buyer’s Remorse at some point during the transaction will often be the first to recognize it and deal with any concerns before doing anything that will inevitably hurt their situation.
Contact Chris with any questions (616-241-0554 x13) at Sherwood Realty, or EMail him at chrism@grar.com.