As we know, there’s an inventory shortage of homes, and prices are on the rise. In large part, the pandemic has contributed to this shortage, especially when paired with historically low-interest rates. One survey revealed that 55% of people said they regret taking out a mortgage during the pandemic. But you can avoid homebuyers remorse, even during this competitive market. Before purchasing, learn the following causes of home buying stress and how to prevent homebuyer’s remorse.
Get Pre-Approved Early
Don’t experience homebuyer’s remorse immediately by stressing and losing time and money by becoming a last-minute borrower who asks their lender for pre-approval to put in an offer quickly. It’s an emotional process, but you can avoid being hurt from a denial by preparing beforehand. Instead, get pre-approved early in your search process. A pre-approval letter shows sellers you’re a serious homebuyer who can close a deal. It also helps you since you’ll know the type and amount of loan you qualify for.
Lower Your Budget to Avoid Homebuyer’s Remorse
Home prices are skyrocketing, but it doesn’t mean you should make an offer on a home if you’re not ready. Account for property taxes and insurance to get a total cost estimate of buying and owning a property to avoid homebuyer’s remorse.
To compete in this seller’s market, homebuyers who are able can make all-cash offers or pay over the asking price. Bidding wars are common today, but they can also be dangerous because the homebuyer can become frustrated and feel desperate when (or if) their offer increases above the home’s appraised value.
To counteract all that drama, lower your budget. If homes sell for 5% to 10% over the sale price, then look at home 5% to 10% under your maximum budget. This way, you can bid up the price without going over budget.
See The Property Before Making an Offer to Avoid Homebuyer’s Remorse
According to another survey, almost two-thirds of homebuyers last year made an offer on a property they didn’t see in person. The pandemic has stepped up the real estate market game with virtual and 3D tours, which is excellent and helpful. But it won’t tell you everything you need, like if there’s nearby traffic, if there’s a drafty room, or even if something that looks legit isn’t. The alternative is to hire a great buyer’s agent who you trust and can do a video tour with you. As your buyer agent, we will tell you the truth and things you need to know about the property because we’re here to help you get your dream home.
Consider Purchasing a Home Warranty
A home warranty will often help you cover the cost to repair or replace covered items This can be an oven, garbage disposal electric, plumbing, heating, and air conditioning. Depending on the coverage and the home’s age, structural pieces like walls, windows, and doors could be covered too. The typical warranty costs about $1,000 a year. But this is worth every penny! Especially if your home inspection reveals home appliances and systems are heading to the end of their lifespan soon.
If all of this sounds good to you and you’re ready for the next step, contact us today! Reach out to us anytime at [email protected] or (512) 828-7074.
