What is Buyer’s Remorse and how does a good agent help to avoid it?
As the housing market has started to settle, after a wild 2 years, we are now seeing an understanding of what happened, and some reality checks.
There has been recent discussion about “Buyer’s Remorse” and this was even covered on King5 News. A recent survey found nearly 75% of buyers during the pandemic now have some “remorse” over their home purchase. This data is somewhat concerning and could be especially worrying for those considering buying a home in the near future. If this is you, please do not be too alarmed! The past 2 years were unprecedented, and it is important to remember that this was far from a normal market. It is also critical to understand that a good agent can help you avoid this, no matter the market!!
So what happened?
Buyers had it tough during the past 2 years. With extremely low interest rates, and extremely low inventory, the market was the most competitive it had ever been, driving prices to increase dramatically. We saw some buyers desperately bidding way way over ask price to secure a home. We saw buyers waive all contingencies to appeal to sellers. We even saw buyers broaden their search to much further away to increase their options. We even saw buyers ‘settling’ for houses that did not fully meet their needs or wants, due to the challenging and competitive nature of the market.
ALL of the above are things that a good agent would typically advise against!! As a result, there has been some fall-out for some buyers. The cooling of the market saw housing prices drop, leaving some buyers in a negative position on their home. Some buyers have found problems with their new home which would have been easily discovered with an inspection, had they not waived the contingency. And some buyers are now also facing difficult and long commutes, with employers now requiring staff to return to offices now the pandemic has ebbed.
So how would a good agent protect against this?
What we saw was unprecedented, and no one was able to forecast the market and the challenges faced. Agents and buyers had to face and overcome the challenges of the time, reacting to the constant changes.
However, even through the height of the market, I was able to successfully guide my clients into purchasing the right properties at the right deal, protect their interests, and avoid any future regrets.
I was able to achieve this, by following these key principles at all times:
Understanding my client:
Knowing their needs, desires, restrictions, what & who is important to them, what they like to do, and their favorite places to go. Knowing their commitments and passions. Knowing their goals and their future dreams. Understanding the way they view things, understanding what would make them happy, and importantly, understanding what wouldn’t. This level of connection, knowledge and understanding of the client, enables me to have their best interests and needs, at the center of the property search at all times. It also enables me to know whether a property is the right fit for them.
Having Detailed Knowledge of the Market:
Having sound knowledge of the market conditions, comparable properties, trends, and any upcoming changes that could have an effect. Knowing both the market worth of the property, and the worth of the property to my client. This is essential to identify whether a property is viable for my client and what needs to be done to make a successful deal.
Being a Confident and Strong Negotiator:
Even in a strong sellers’ market, with buyers having less leverage, it is never a case of simply giving the seller whatever they want … It is ALWAYS important that the deal is right for my buyer! Identifying where we could negotiate to benefit my buyer is essential. Even in the height of the market, I was still able to close on a home off-market, draw sellers into accepting offers before review and avoid bidding wars, and have sellers accept lower offers. Being prepared, being armed with detailed knowledge, and focused on my clients’ interests are just a few of the essential elements needed to successfully negotiate on their behalf.
No matter what path the property search takes, no matter how long or short the process is, a vital role of the agent is to ensure that the clients stay focused, even if it means the search takes longer. It is often all to easy to have wandering eyes, looking at properties outside of their needs and wants, looking at areas that do not meet their commitments and goals. This discipline ensures that the clients are looking at the right properties and are not being lured down a path to regret.
Advising Expertly and Honestly:
Ultimately, the client is the one who makes any decision. This is why it is imperative that the agent has guided them and advised them correctly. This also means that there must be complete honesty as well expert knowledge. This means knowing the right limits, the right direction to steer your client, and being prepared to draw the line. A good agent knows how to buy a home, a great agent knows when to walk away.
If you are planning to enter the housing market, make sure you are working with a GREAT agent … one that will always protect your interests.