I Wish I Had Known – Avoiding Buyer’s Remorse
These words, or something similar, are not what you want to utter, or think, after a transaction.
No one wants to be dissatisfied with the home they just bought, for a ton of money…the neighbor from hell, a leaky roof, a malfunctioning furnace or AC unit, a new commercial development planned in that vacant lot next door, the next door property is a short term vacation rental, the heavy-footed neighbor who lives upstairs.
Maybe you thought you would not mind the road noise but soon find out it’s a problem.
Check out Home Buying Tips and Advice (video series) on some things you should know and think about as a buyer, BEFORE you buy!
Is buyer's remorse completely avoidable? Hard to say. There is probably always something that could get missed in the due diligence process, or something that changes after closing that you did not know or learn about, or perhaps even changed your opinion about.
Can you know EVERYTHING with 100% assurance. Unlikely.
The things that might cause buyers to feel regret and that “I wish I knew” feeling are likely very personal – some homeowners are more tolerant of some issues than others. But there are steps buyers can and should take to learn as much as possible during the due diligence phase of your purchase (this varies from state to state).
Here’s what I recommend you do:
I recommend seeing a property twice before making an offer, if time permits. It’s surprising what buyers can miss on the first go around, especially if the first impression was really great. It’s easy to get excited, rush through, and miss things that may actually trouble you. But sometimes you miss some really good stuff on that first visit! The amount of light, a view, the extra storage in the garage.
Have a thorough home inspection to uncover defects, needed repairs, deferred maintenance, appliances that are on their last legs, and so on, so you know what you are purchasing
Consider other inspections to supplement your home inspection if there are particular concerns or when recommended by your inspector – roof, septic, well, HVAC, plumbing, electrical, structural, fire sprinklers, chimney and fireplace, pool and/or spa, termites and other pests, radon, etc. The money is well spent, especially if you encounter a problem. Adn you can estimates of what any repairs might cost
Read all the seller disclosures and property reports (e.g., Natural Hazards Disclosure, Local Area Disclosures) thoroughly and carefully, and ask for clarification on any matters of concern. These reports and disclosures will vary from state to state. Check the insurability of the home and consider requesting the seller provide a C.L.U.E. Report to uncover any recent insurance claims.
Review the Preliminary Title (here in CA) carefully for any concerns including liens, easements and exceptions to title insurance coverage. Contact the Title Officer with any questions and consider consulting a real estate attorney with any questions especially with regard to easements. In some cases it may be prudent to have a land survey done depending on the property and potential encroachments (e.g., fences)
Review HOA documents (if applicable) and CC& Rs (if applicable) carefully to be sure you understanding any restrictions (e.g., pets), rules that you can’t live by, the budget, etc. Ask the HOA for clarification on any questions you may have. Again, consider legal advice on matters set forth in the CC & Rs if needed.
If the house appears to be on a private road (e.g., you see signage), or it’s disclosed in the seller disclosures, MLS listing, or the CC & Rs, find out what this means for you. One big question…who maintains the road and what does this cost? Is there a written agreement or is it more informal?
Consult the local police department for information on crime if that’s a concern. Talk to the neighbors and spend time in the neighborhood at various days of the week and times of days. Police reports may be posted in the local papers. Check out CrimeMapping or other sites that share police reports. Do a Google search on the community/neighborhood. Here in CA you can also check the Megan’s Law database for registered sex offenders.
Talk with neighbors. You can learn all sorts of things that way about the community, crime, schools and much more…perhaps even more than you really want to know. And spend time driving around. You might discover pleasant, or unpleasant, surprises on the next street or nearby
Is there new construction going on in the area or vacant lots that might be developed? Check with the city building department to find out what is being built or what might be in the works. Neighbors may have some information on this too but double check
Lastly, ask lots of questions about those things that concern you. Your Realtor®, the City, inspectors and other professionals can be a terrific source of information, if you ask
The more thorough your investigation of the property and the neighborhood, the less likely something is going to arise that will have you regretting your purchase.
Can you absolutely rule everything out? I think it’s unlikely. But if you enter into the purchase, having done your due diligence, with a comfortable feeling about your new home, chances are you won’t regret the choice, even if your new home is not perfect!
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