Source: US News —
Caveat emptor – buyer beware – is a well-known phrase in real estate. It refers to instances when buyers must take caution and be smart with their money. If you throw caution to the wind, you could end up regretting your decision.
Buyer’s remorse isn’t uncommon. According to an October survey from Hippo, a home insurance company, more than three-fourths of U.S. homeowners who purchased a home in 2022 experienced buyer’s remorse.
“A home purchase is most likely one of the largest purchases you will make in your life, and it can be an emotional rollercoaster,” says Marcy Downey, a mortgage loan originator at Motto Mortgage Signature Plus based in Florida.
Buyer’s remorse is a feeling of guilt or regret after making a purchase. “Buyer’s remorse is like an awkward yearbook photo,” says Alex Young, a Wisconsin-based Realtor and broker. “Everyone knows about one and they all come with a story.”
In real estate, buyer’s remorse is when a new homeowner regrets the home they recently purchased and feels as if it was the wrong decision. “It is the feeling of regret and fear over making a life-altering decision without 100% certainty,” Young says. “A buyer wants to feel like they are not going to be the awkward yearbook photo everybody is going to remember – for better or worse.”
According to Young, the risk buyers take when purchasing a home or making a decision during the home buying process is often not what directly causes buyer’s remorse. Instead, it highlights existing issues the buyer may already have.
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