Buying and Sellng propery is pretty straight forward, but it can be stressful, and it can be emotional, and it’s important to know that remorse is a natural part of the process.
Not everyone will experience it, but it’s not uncommon either.
So what is buyer’s remorse?
If you find yourself doing any of the following, then it’s possible you have buyer’s remorse. Are you:
- Obsessively checking real estate ads or driving around the neighbourhood mentally comparing what you’ve bought to what’s still on the market?
- Constantly seeking reassurance from family and friends that you’ve made a good decision?
- Keenly reading articles and blogs by property experts to allay your fears that interest rates could go up, or the property market could collapse?
- Worrying about losing your job and not being able to pay the mortgage?
Rest assured, these feelings are temporary, but to get yourself through this period of self-doubt, here are some points to remember.
Every property has an applicable price range, but what a property is actually worth boils down to what the buyer is willing to pay. Every home has pros and cons and no place is perfect. Remember too, the research you did, why you loved the property enough to buy it, and envision your future there.
Also take heart in the fact that the Australian property market has always been a solid long-term investment, and it is better to have staked your claim in the market, than to have held back because of fear.
The first 12 months of ownership are usually the hardest as you get used to the new financial commitment, but your lender would not have approved your loan if mortgage repayments were likely to cause you great hardship. Your lender may also have suggested that you put the appropriate insurance in place to cover repayments if something unforeseen should happen. This is ultimately your responsibility to compare premiums, take insurance cover for income protection (if you are an owner occupier) or landlord insurance (if investing).
Sellers suffer remorse too
Often, for sellers, the remorse can be greater, especially if the property has memories or family history attached to it.
Even when this is not the case, sellers too, get caught into the trap of worrying if they got the best possible price and whether they sold ‘at the right time’.
In Australia there is a lot of media coverage about real estate because we Aussies put such a high cultural value on having a home to call our own. The volume of information can get confusing and it can be conflicting too – one expert might say we’re at the peak of a boom and another will say prices are still rising, or perhaps declining.
Real Estate valuation is not an exact science, but you will get a realistic sense of your property’s worth if you do your own research and engage a reputable sales agent (who should be a walking, talking encyclopedia of house prices in your area).
Having access to extensive up-to-date market data and analysis generally means that both buyers and sellers are knowledgeable about property value and market trends. As such, they are able to make informed and sensible decisions. Plus, in Australia we also have protection in place so that in the highly unlikely scenario that a shonky deal has taken place, there are avenues for recourse.
When seller’s remorse sets in, the only cure is to imagine the positives that lie ahead. Picture yourself with some cash to spend and keep your eyes firmly fixed upon the future.
For mortgage advice, talk to us.