Avoiding Homebuyer’s Remorse: A How To Guide

Avoiding Homebuyer’s Remorse: A How To Guide


Purchasing a home, whether you are looking to flip it or live in it, is a rather large undertaking. There are countless factors to consider during a transaction, each of which can resonate even after the home has been sold. So it’s no wonder that in a recent survey of 2,000 homebuyers, a staggering 80% said they regretted at least one thing about their home.

According to HSH.com, the biggest complaint registered by buyers is related to the size. Most buyers regret not buying a bigger home. People also regretted not having enough closet space to work with or that the place didn’t have enough bathrooms. Regardless of the situation, most buyers found something to complain about. These complaints should register with investors, as they should know what to look for when buying a home they intend to rehab and flip.

Perhaps even more importantly, most of these issues can easily be avoided. To keep you from buying a home you’ll regret, Brendon DiSimone, a New York-based real estate broker and author of Next Generation Real Estate, offers up these tips:

Don’t Settle: The purpose of buying a home can vary dramatically between prospective buyers. The average homeowner is likely to be more particular with the shopping endeavor, but investors also need to practice patience and stick to what they want. In each scenario, the buyer is looking to address certain needs. More often than not, a buyer will have certain criteria that they want to meet with their purchase. Having said that, it is important to stick to your list of requirements. Do not stray from what you have already deemed necessary. If you know that having three bathrooms is important for your happiness but the house only has two, move on.

There is a reason you set certain criteria. Be sure to stick to your strategy. Don’t let yourself fall in love with a home that doesn’t match your needs. Regret may not set in immediately, but when it does, additional costs can add up. As a real estate investor, you are only hurting yourself and your business if you stray from your requirements.

Don’t Be Swayed By A Partner: Buying a home is a very particular process. There is usually no reason to rush into such a large purchase without knowing what you want out of it. Having said that, this point is very similar to that of the first one I made: don’t settle. However, if you have already thought about what you want out of a property, there is no reason you should let anyone else talk you out of it. You should have already run the numbers and, more than likely, already know what it is you need to conduct a proper flip.

Perhaps even more importantly, for the sake of this article, you want to avoid any resentment between partners. If your partner buys a home without your consent, resentment is almost inevitable. By all means, consult with your partner, but if one out of the two does not want the home, it might be time to move on to the next. One flip might not be worth jeopardizing a partnership.

Know When To Give In: Again, many of these points will relate with one another. However, this one may contradict the previous point. While it is important to stand your ground on what you require, it is equally important to concede when you may be wrong. Whenever there are two opposing views, things can become heated in a moment’s notice. At the very least, listen to what your partner has to say. After all, you must respect their opinion if you were willing to partner with them in the first place. For all you know, they will have a good point.

Moreover, certain elements of the house may require you to give in as well. Specifically: deal breakers. Don’t pursue a home that will not be conducive to a flip. Everyone house hunts with a wish list, but there are some items that can be compromised. Tiny kitchens might be a deal breaker if you are an avid cook, but maybe you can live without a den.

Don’t Get Caught In The Moment:

The average real estate investor is a passionate individual. Subsequently, the real estate investing industry can prove difficult and taxing to those who don’t have a passion for it. In fact, passion is almost always viewed as an asset in this industry. However, there are times when it can conflict with what you are trying to do. Do not – I repeat, do not – get caught up in the heat of the moment.

As an investor, you may find yourself in more than one bidding war. If there is a desirable property, chances are you are not the only one with your eye on it. However, it is important to keep a level head and remember your training. Go into a bidding war with the price you are willing to spend. With a little due diligence it is easy to determine what you should pay for a house. Do not let a bidding war influence that. Overpaying is one of the biggest sources of remorse, especially if buyers get involved in a bidding war. Bidding against other buyers can be exciting and entice homebuyers to throw their budgets out the window. But sometimes, it becomes more about winning than how much the house is worth.

-See more at: http://www.fortunebuilders.com/avoiding-homebuyers-remorse-guide/

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