Avoid buyer's remorse
Purchasing a home is an exciting time in one’s life; it is a milestone that many aspire to and a symbol of success. However, according to studies, nearly 80% of homebuyers have at least one significant regret regarding their property purchase decision. Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, says that so many homebuyers get caught up in the emotional journey of purchasing a property and sometimes overlook certain important elements. It is only once they have moved into their new home and everything has settled that the reality of the situation sets in and they start to see the things they previously didn’t.
“Buying a home is a massive financial commitment, yet many buyers base their home buying decision on only a few minutes of viewing the property. If buyers are not fully prepared and do not have an idea of exactly what they are looking for, it could be easy for them to miss something or make an incorrect decision,” says Goslett.
He notes that there are a few tips the homebuyers can use to avoid buyer’s regretting their purchase:
Stay focused
Ideally before a buyer starts to look for a home, they should have made a list of their needs and wants, prioritising the must-haves and noting the elements that they are willing to compromise on. “It is important to not get distracted by the wants and remain focused on the must-haves. If the house has many of the buyer’s wants, but does not meet their main objectives – it is not the right house. Considering the fact that purchasing a property is a long-term commitment, buyers will have to deal with their compromises for a long period. For this reason, it is essential that they make the right decision upfront,” advises Goslett. “Working with an experienced, reputable real estate professional will assist the buyer to keep on track and find a home that meets all their criteria.”
Check the finances, and then check them again
One of the main reasons that buyers regret their home purchase is unexpected costs. It is vital for buyers to calculate how much they can afford, taking into account all the associated costs that go along with homeownership such as homeowner’s insurance and maintenance. A bond origination company such as BetterLife or a professional financial adviser will be able to provide potential buyers with a list of costs that they can expect to pay when purchasing a home.
Goslett says that having the home inspected will also give buyers an idea of the type of repairs that they can expect so that they can budget for this beforehand.
Don’t get caught up in a bidding war
With inventory stock still an issue in many sectors of the market, it may be possible to get sucked into a bidding war and lose some perspective. “A competitive offer from another prospective purchaser could make a home seem more attractive than it really is and lead the buyer to push up their offer. However, it is important to stay objective and keep in mind that you are trying to buy the right home – not win an auction. It is best to walk away from a home, than overpay as a result of a bidding battle. Paying more for a property will mean larger deposit requirements, higher transfer costs and thousands of rand of additional interest on a larger bond. Another down side is that it will take much longer to build up any equity,” says Goslett.
He concludes by saying that purchasing a home is one of the largest financial investments most people will make in their lives. While finding the right home can be an emotional rollercoaster, it is important to keep things in perspective and focus on what really matters to avoid any remorse.
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