Buyer\u2019s remorse is all too common with human beings, whether it\u2019s a splurge on a new purse or a night out. But with something like a house, where you\u2019ll be stuck for a few years, you need to figure out your next steps. Here\u2019s how to handle buyer\u2019s remorse if you just bought a house<\/a>.<\/p>\n Psychologists define buyer\u2019s remorse as a type of cognitive dissonance. As humans, sometimes we want things that are in direct opposition to each other \u2014 for example, we want to buy a house, and we also want to travel and eat out and have a nice lifestyle. The moment we commit to one path (buying a house), we worry that the other choice might have made us happier.<\/p>\n Thompson thinks that it\u2019s easy for doubt to creep in, \u201cespecially if buyers haven\u2019t gone through the ebbs and flows and highs and lows of the emotional part of those transactions.\u201d If one of Thompson\u2019s clients struggles with buyer\u2019s remorse, he\u2019ll sit down, listen to their concerns, and walk them through all the reasons they decided to buy<\/a>. Often, this reassures them that they made the right decision.<\/p>\n Humans deal with buyer\u2019s remorse by making \u201cpost-purchase rationalizations,\u201d which sometimes can stave off buyer\u2019s remorse if they\u2019re easy to uphold. For example, we rationalize that buying a home was the right financial move<\/a>, or that we now have a shorter commute with this house \u2014 whatever rationalization relates to things we value. When it\u2019s not so easy, though, we start to have problems.<\/p>\n Most of the underlying causes of buyer\u2019s remorse relate to the big change that owning a home brings into your life. Knowing what to expect can help you manage your emotions as you adjust to this change.<\/p>\n The moment you realize you can\u2019t pick up the phone and call the landlord about the broken toilet, the reality of being a homeowner sinks in. When you own a home, maintenance<\/a> responsibilities fall on your shoulders. In one survey, 18% of homeowners<\/a> who indicated that they felt buyer\u2019s remorse attributed it to unexpected maintenance and hidden costs.<\/p>\n How to handle it? Make a home-maintenance plan<\/a> to maintain major systems. Preventative maintenance helps prevent emergencies, too. You can learn how to do many tasks (caulking windows, for example) from YouTube videos or through free classes at your local home improvement store. Once you have a plan, you\u2019ll likely feel more in control and less panicked.<\/p>\n Also, consider outsourcing tasks like lawn maintenance or snow removal. Get recommendations from neighbors and quotes for services. Thompson has seen that if a buyer feels remorse because of the upkeep involved, once they \u201cstart to collect the data, it usually supports that it\u2019s not as large a task as they thought it would be.\u201d<\/p>\n What if you didn\u2019t realize when you bought that the nearby train ran all night and you can\u2019t sleep from the noise pollution<\/a>? Or your neighbor hosts loud parties in their backyard during the summer. Location issues are tough to fix \u2014 but you have some options.<\/p>\n You can wait it out two years to avoid capital gains taxes. In the meantime, buy earplugs or install a fence, and then sell.<\/p>\n If you can afford to move again, buy a different home in another neighborhood and turn this home into an investment property<\/a>. While becoming a landlord brings its own issues, renting the house might be your best choice.<\/p>\n If you truly can\u2019t stand the location, you can talk to an agent today and see if there\u2019s any way for you to get out of there sooner, or if they have any other ideas.<\/p>\n Sometimes you bought at the top of the market, and you realize you won\u2019t make money if you sell. You might even worry about recouping your initial investment. This is why most financial experts advise buying a house you intend to live in as a home for at least five years, rather than as an investment.<\/p>\n It can also be tough to see your savings account shrink after making the down payment<\/a>. After all, now you don\u2019t have that cash available for emergencies. But instead of viewing the money as \u201cgone,\u201d shift to thinking of it as reinvested in your home. It\u2019s still there, just less liquid than before.<\/p>\n When you\u2019re buying as a homeowner, not an investor<\/a>, price appreciation is a bonus. You can hold the home for longer, and you\u2019re also getting the benefit of living there until it\u2019s time to sell.<\/p>\n Maybe your mortgage payment is higher than you expected. Or, perhaps you underestimated the difficulty of sticking to a budget. Whatever the reason, you\u2019re dreading paying your mortgage each month.<\/p>\n To handle buyer\u2019s remorse related to your payment, Thompson advises looking at your overall financial picture. \u201cTalk to a good accountant. The payment might be a little tight initially, but you might get money back in your income taxes because your stated deductions could be increased,\u201d he says. Use a larger tax refund to offset mortgage payments or other costs of owning a home.<\/p>\n It\u2019s possible to generate some income with your house and rent out a room<\/a>, or the whole place on weekends as a vacation rental (in certain markets). This is also a solution if you\u2019re feeling overwhelmed by your new home\u2019s size.<\/p>\n In larger cities such as Boston or New York, you could rent a garage or parking spaces, or a home office. If you bought an old Victorian<\/a>, think about hosting a bed and breakfast to help cover your mortgage.<\/p>\n Eventually, you\u2019ll be able to refinance once you have more equity<\/a> in the home and likely lower your payment.<\/p>\n Did the Federal Reserve drop rates a month after you closed on your new home? Wishing you\u2019d snagged a lower interest rate could definitely contribute to buyer\u2019s remorse, but it\u2019s a pretty easy fix. Hang out for a few months, and you may get an offer to refinance<\/a>.<\/p>\n Keep working on your credit, too \u2014 you can always refinance when you have more equity and get a better deal.<\/p>\n If you lived in apartments for years, a home might feel too big. The thought of furnishing and cleaning it can be intimidating. While you could downsize, it\u2019s not something you can do overnight.<\/p>\n![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/06\/buyers-remorse-1-666x381.png\")
<\/a>Defining buyer\u2019s remorse<\/h2>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/06\/buyers-remorse-3-666x381.png\")
<\/a>Why do people feel buyer\u2019s remorse?<\/h2>\n
Maintenance is overwhelming and expensive<\/h3>\n
You don\u2019t like the location<\/h3>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/06\/buyers-remorse-4-666x381.png\")
<\/a>It\u2019s a bad investment<\/h3>\n
The mortgage payment is too high<\/h3>\n
The mortgage rate could be lower<\/h3>\n
The house is too big<\/h3>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/06\/buyers-remorse-2-666x381.png\")
<\/a>