One of the most important financial decisions most people will ever make is purchasing a home. Homes serve their residents while they are there, but they also act as long-term investments that can be used for retirement or other significant life changes. Regrettably, up to 70% of homebuyers say they have at least one regret about their experiences and choices made during the process. According to reports, popular markets in areas like Phoenix and California have greater incidences of buyer's regret.
As a real estate agent, it is your responsibility to ensure that your customers make sound judgments and experience no buyers' regret. Even though you can't foresee how people would feel after the purchase, you can control their expectations while shopping. Let's look at various regrets homebuyers have and how you might assist.
Common Causes Of Buyer's Remorse In Real Estate
The "Buyer and Seller Insights Report for 2022" identified a few key causes of house purchasers' regret based on a survey conducted by HomeLight. Let's go over some of the most typical causes of this regret.
- 22% of purchasers said they paid too much for their homes. These clients worry they may have overpaid after leaving the bidding wars and finally moving into their new houses.
- 22% of buyers said they would need to spend less on home upkeep. New homeowners may be surprised by how much time and work goes into maintaining a house and all of its appliances.
- 20% felt they had made their home-buying decision too hastily. They might have questioned whether being more picky would have led them to a better option.
- 18% of respondents said they were in the dark about the whole cost of home ownership. Buyers should factor in fees other than the mortgage when estimating the cost of a home, including taxes, insurance, maintenance, and upkeep.
- After moving in, 13% of people discovered that the layout of the house did not meet their expectations. These new homeowners discovered after moving in that the arrangement and flow of the area did not correspond to how they intended to use their home.
- 12% of respondents regretted that their house was not situated closer to popular attractions.
- 12% of respondents expressed a desire for a new political environment where they lived.
- 10% said they wanted the local schools to be better.
When buyers are prepared during the purchase process, you as a real estate agent may assist them avoid many of these annoyances.
How To Handle The Expectations Of Your Client
It's vital to control your client's expectations before, throughout, and after the home-buying process since an informed buyer is a satisfied buyer. Most real estate agents rush to discover properties that satisfy every requirement of their clients, therefore they often forget the significance of this phase. However, controlling expectations and keeping customers informed will reduce the likelihood of buyer's remorse and might even persuade them to recommend you to their friends and family. Here are some starting points.
Deliver Precise Market Research To Clients
Give your clients accurate market research and data when they come to you and tell you the locations in which they are looking for a property. Help them understand the pricing range and available types of homes in their specific neighborhood. They will be able to see the many kinds of homes that make up the neighborhood and how central neighborhoods differ from other important places thanks to this wider perspective on the market. You can also give them information so they can completely comprehend the local political environment and the caliber of the local schools.
Give Information And Figures Regarding The Region
By providing information and figures about the properties in your real estate market, you can also help clients get ready. Inform them about the normal age of the home, the kind of maintenance they may anticipate, the local property taxes, and details on housing insurance.
Inform Clients Of Typical Reasons For Buyer's Remorse
Inform clients of the typical sources of regret you have run into. By knowing about potential issues beforehand, they may avoid them and have more time to consult with one another before deciding.