Donna Russell

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Combat Buyers Remorse

Posted On: July 30th, 2017 6:33PM

Surprised

 

So you did your research, you looked at model homes, you investigated neighborhoods and school districts, you made an offer, and --voila!-- you're a homeowner!  This should be one of the happiest days of your life...so why do you feel like driving off a cliff ala Thelma and Louise?

Well, it's called buyers remorse and it's as universal as the common cold.  Statistics are on your side: 74% of first-time buyers say they like their new home better than their previous residence and 67% of repeat buyers like theirs better.

Legally you have 3 days to change your mind and cancel the contract.  Right?

Nope!  But there are several steps within the process where you have the option to opt-out or renegotiate your contract, but after a formal title close and recording isn't one of them.  During the buying process a buyer can cancel for failure to qualify for the mortgage financing after a diligent and good-faith effort or based on the reasonable disapproval of some aspect of the home.  What consitutes "reasonable disapproval of some aspect of the home"?  Read on and find out.

 

Think structural, health & safety.  Notice of violations of building, zoning, fire or health laws. 

  • Flood hazard designation (resulting in the cost of flood hazard insurance)
  • The title commitment report from the title company (which may indicate liens, unpaid taxes and easements restricting the use of the property)
  • The Seller's Property Disclosure Statement.
  • Homeowners association disclosures (such as the restrictions contained in your community's covenants, conditions and restrictions or other governing documents)
  • Cost to repair any septic or other waste-disposal system
  • Swimming-pool-barrier law compliance
  • Lead-based paint information (for homes constructed prior to 1978)
  • Termite- or wood-infestation reports
  • Damage to the home exceeding 10 percent of the purchase price (by fire, flood, earthquake or act of God)
  • Information obtained from the home inspection and investigation (which may reveal adverse property conditions)

The best way to prevent (or at least mitigate) buyer’s remorse is to prepare yourself in advance, long before you ever sign on the dotted line. Discuss the process and all your purchase options with your real estate professional before you make an offer.  During the process you will see times when you have options to move forward, withdraw your offer or re-negotiate. 

When buyer’s remorse hits, as it surely might, remind yourself where and why you wanted to continue to buy a house in the first place.

Then pop open the bubbly and congratulate yourself!

 

 

 

 

 

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