Sheri’s Blog

Some years ago, my husband and I bought our second home. We found what we thought was a great house, made our offer, and then entered into a contract. Later the next day, I began thinking. The home seemed dark inside… so many trees. And we’d have to repaint and re-carpet… hmmm how much was all that going to cost? And the den, with all those dark beams running across the ceiling, they would have to be removed. Suddenly, I was besieged with fear. What had we done? I was in a full fledged panic now, and was feeling trapped by the contract. This house was just all wrong! I wanted out!

I had a good case of what we in the business call “buyer’s remorse”. And this is where many deals are lost, or buyers get themselves into trouble.

What to do when you have buyer’s remorse? First, don’t do anything… initially. Allow yourself to experience the panic. At some point, logic will take over. But it’s never prudent to take any action when you’re so worked up.

Now that you’re calm, sit down and make your wants and needs list. If you already have one, take it out.

Here are the questions to ask yourself:

1. Does the home include the most important things on your list?
2. What were the outstanding qualities of this home that made you want to purchase it – what made it stand out from all the other homes you visited?
3. Were there other homes that met all your needs? Or was this one truly unique?
4. If you could back out of the contract, do you think you could really find a better home?
5. What was special about this home at the time you made the offer and how has it changed – really changed?

There are many reasons why a purchaser experiences “buyer’s remorse”. Buying a home is stressful, and there are many questions and potential hurdles to overcome during the closing process. Your own doubts may set in, or maybe a well meaning friend or relative questions your choice and what you paid for it. But how well do they really know the market? And let’s face it, parents rarely think a house is “good enough” for their children.

When Your Concerns are Valid:

There are times that a contract should be halted. Here are some conditions that may justifiably allow you to back out:

1. The house does not appraise for the purchase price or greater.
2. You can not obtain financing.
3. The home inspections uncover major defects that the sellers are unwilling to repair.
4. The property boundaries are misrepresented by the seller.
5. There are liens against the house.
6. There are problems with the deed.

The contract you have signed is legal and binding. If you decide to breech the contract, you could be sued, or at the very least, lose your earnest money. Your actions are also unfair to the seller, who has put their house in a temporary holding pattern during the closing period. Once the house goes back on the market, the sellers are almost always penalized with a lower offer the next time around.

Moral: Do not buy a home unless you are ready! If you feel yourself becoming panicked, talk to your partner, dog or therapist first… but do not make any rash decisions! Then, take out your list, and answer the 5 questions. Try to identify the real issue that has caused the panic. If your concern is legitimate, seek the council of your Realtor and/or Attorney.

A Happy Ending; we bought our Williamsburg home, and lived there happily for 5 years. We did make many changes, and earned a substantial reward when we sold it for well above asking, with a triple offer situation!