What is “Buyer’s’ Remorse” and How Can it be Avoided? Boston’s Own Boardwalk Properties Explains!
A recent study conducted by Redfin revealed that 1 in 4 American homeowners who have purchased the home in which they currently live said that they “would not make that purchase again,” if they could go back. This is known as “Buyer’s Remorse,” and it can happen to anyone. However, as the team behind Boardwalk Properties knows best, the phenomenon of buyer’s remorse is rare in the city of Boston, as the vast majority of properties in the greater Boston area only continues to increase in value.
In fact, Boston rents have been increasing, on average, by 10 percent – and that’s just over the past two years. Investment properties in Boston are on fire! Even so, hopeful investors in the city are not immune to the curse of buyer’s remorse. Youth, impulsivity, spontaneity, and an inability to fully think a project through all frequently contribute to buyer’s remorse. The final ingredient is finances.
Few things cause buyer’s remorse quite like paying too high a price for a property. In 2006, I purchased the most expensive two-family property in Mission Hill, MA. Though most of my friends and real estate colleagues were sure that I had overpaid, I decided that the best way to combat buyer’s remorse was to remain patient, and confident that the neighborhood was experiencing growth in demand. Fortunately, if there’s one mantra that has yet to fail this Boardwalk Properties real estate professional, it’s this: Do not wait to buy real estate. Buy real estate, and then do the waiting!
That said, it’s crucial that you, the buyer, make sure you have enough money to cover improvements and maintenance to the property, as well as allow time to yield an increase in value on your investment. Nearly every property purchased by Boardwalk Properties is based on understanding the cost per square foot, as well as a handle on improvement costs. Once the real estate experts combine both of those figures and compare the aggregate rents in any given neighborhood, the agents will know for certain whether or not rents will cover the costs.
In the end, as a potential buyer, do your homework, do not over-extend yourself, consider the overall value of the area you’re looking to live in, and make sure you have an exit or long-term strategy. That way, you’ll be able to avoid the dreaded emotional and financial burden of buyer’s remorse!