Buyer’s remorse is a concept that many are familiar with, oftentimes accompanied by a sinking feeling of regret when spending a large amount of money on a house. This can happen with plenty of things in life, and you might be wondering how you can overcome buyer’s remorse if it should happen after such a significant purchase. The added stress of buying a house can be enough to make you wish that you could take it back, especially if a hefty downpayment has been taken from your savings. Unlike small things in life, your home can’t be returned for a refund, but you should not be feeling regret about purchasing your home.
The good news? Buyer remorse is more common than usual, and there are tons of methods to overcome it.
Is Buyer’s Remorse Common for Home Purchases?
Studies from American Family Insurance show that 52% of homebuyers experience some type of buyer’s remorse. The number is higher for millennials, with 64% of that group experiencing buyer’s remorse. Buyer’s remorse is a common feeling that many experience, especially with the seller’s market, causing home prices to skyrocket and creating competition among buyers. It is easy for buyers to get caught up in a bidding war when finding a home that you love, leaving you feeling as if you were bidding in a competitive auction.
How Can I Overcome Buyer’s Remorse?
If you can determine and identify the cause behind your regret about the purchase of your home, you can better learn how to overcome the remorse over buying your home. There are a couple of reasons why homeowners may regret their purchase:
- Unexpected repairs and maintenance.
- Poor investment.
- The mortgage is unaffordable.
- The interest rate of the mortgage is high.
- Size of the house.
- The neighborhood is undesirable.
Utilize One of Five Techniques to Overcome Homebuyer’s Remorse
If you are feeling a pinch of regret over purchasing your house, we have provided five ways that you can overcome buyer’s remorse.
- Assess Your Budget
Budgets are a fickle thing for everyone from time to time. Things that might not have mattered as much before getting added, like subscriptions, a mortgage, a credit card payment, and miscellaneous unplanned expenses. If you have regrets over your home purchase because you are “house poor,” there are methods to remedy this. Items in your monthly budget should be re-evaluated that are not necessary in your day-to-day life. Trimming things off of your budget can free your funds up and aid in easing the remorse that you are experiencing.
2. Re-Evaluate Your Wish List
It is time to remove a wish list created before you purchased your home and re-evaluate it under a microscope. Comparing your list of needs versus wants to the house that you settle into can help you overcome the buyer’s remorse you are feeling. It is a rare circumstance to check off all items on the wish list you created. Focus on the more important things, the ones you knew would make it or break it when you have gone house shopping. Features of the home that you got are a bonus beyond that.
3. Create a Routine in Your New House
Some people are creatures of habit and thrive best with a solid routine in place. There is nothing inherently wrong with spontaneity, a reasonable routine can help to cut down on stress when returning to partaking in things that you love. Establishing some sort of routine can help improve your stress, health, and sleep and will set a great example for others to closely follow. Getting back into a routine if you have slipped out of one can help you overcome remorseful feelings.
Recall things that you have enjoyed in the past in your space, like hobbies and entertainment. If you have not been able to enjoy the activities you did before since moving into your new living space, it might be time to switch up your groove. Doing this can help to uplift regretful feelings while replacing them with comfort can remind you of all the possibilities that your brand-new space can provide you.
4. Begin Decorating Your New Home
If you are feeling remorseful about your purchase, we recommend trying to make the best of the situation by decorating your home. A new coat of paint here and a pretty texture rug there can help to transform your new home so that it feels more like yours. Decorating can not only help to improve the look of your new house, but it can also improve its overall functionality. A great way to decorate your home with intention is the feng shui way to create balance in your space. This can afford you more peace in your surroundings and help eliminate feelings of remorse.
5. Discuss Refinancing with a Financial Advisor
Have you felt like you might have missed out on a low mortgage rate when your new home was purchased? That can be enough to make anyone feel remorse. Low rates can save your bank account thousands over the term of your loan, but there might still be time to take advantage of them all. You will likely want to hold off on this for a few years before applying for a refinance to gain traction on equity, the current price of your mortgage divided by the appraised value of your house. After you have been in your home for a few years, it may be time to speak with a financial advisor about whether or not a home loan refinance is the best decision for you.
Before doing so, we recommend monitoring and managing your credit history and scores, just as you might have done before purchasing your home. You can always request a copy of a free credit report each year. Utilize these reports to help monitor changes to your credit score, then opt to discuss concerns that arise. Paying all of your bills on time can help, but big spending should be kept in check. Large purchases that will require taking out a new credit card or a loan and expanding your debt-to-income ratio can pose a challenge when it comes to refinancing later down the road.
Utilize these tips to help build resilience to the added stress of buyer’s remorse to overcome it. If your feelings of remorse worsen or influence your ability to function in life, seek the wisdom of a professional to get on track again. A house is an impressively large purchase, but there is no reason to allow buyer’s remorse to derail your life and future. If you’re thinking about buying a home, contact our office today! We would love to help you find the perfect place to call home.