Most of us are familiar with the concept of buying remorse. How often have you made a big purchase only to immediately regret your decision? This experience happens all too often, especially among homebuyers. However, an equally as problematic concept you may not be as familiar with is "seller’s remorse".
Seller’s remorse occurs when a homeowner regrets the sale of their home. The reasons behind these feelings can stem from many causes. Perhaps they feel pressure to sell their home or feel attached to the home. Maybe they are simply unmotivated to sell, or have anxiety around selling their home due to financial challenges or market conditions.
This seller’s remorse has become even more of an issue in today’s market. Selling a home is fairly easy with so much demand for homes. Sadly the buyers market that most sellers inevitably face afterwards can be a nightmare. As you can imagine, the anxiety, financial strain and pressure of buying a home can cause some serious seller’s regret.
It’s not uncommon to experience seller’s remorse, especially once buyers' offers start rolling in and pressure creeps up. Thankfully, there are ways to minimize these concerns. With proper preparation, you can boost your selling confidence and avoid seller regrets.
Hire a Good Real Estate Agent
A good real estate agency is going to be your best ally in your home transaction. Real estate agents provide their clients a variety of services that help them prepare for the potential sale of their home. This includes:
- Market knowledge: A good real estate agent is a market expert. They will be able to provide you market information and context such as local selling times, cost and earning estimates, required prep work, and more.
- Selling advice: On the fence about selling your home? A good real estate agent will be able to help you decide if you are serious about selling your home, or whether it is a good decision for you. They are there to go over any questions and concerns you might have to help you make the right decision.
- Negotiating skills: If you start to have some doubts after receiving offers but still want to continue with the sale, your agent can help. With your agents, you can produce a purchasing agreement that addresses all of your concerns and maximizes your home’s price.
Having the support of a good real estate agent will ultimately provide you the answer you need to back out of selling your home, or the confidence you need to continue regret free.
Price it Right
Pricing a home is one area that causes a lot of stress for sellers. List it too high and you risk turning away potential buyers that can’t afford the inflated listing price. List it too low and buyers will be lining up at your door, but you’ll be leaving big money on the table. An extremely low price could even raise red flags for some buyers who question whether it’s too good to be true.
As a seller, you want to price your home in a way that attracts potential buyers, is in line with the market, and puts the most money back in your pocket. The best way to price your home right is to get a comparative market analysis (CMA). CMA’s provide sellers an estimate of your home’s value compared to other homes that have recently sold in your area.
Any real estate agent you work with will pull up the comparable sales and provide you with a free CMA for your home. Not only will a CMA help you and your agent to determine a realistic selling price, but it will also help you figure out the best time to put your home on the market. Both of these will set you up for selling success, as well as eliminate pricing concerns and reduce potential regrets.
While most contingencies are most common among buyers, there are some that sellers can use to help them feel better about selling their home. Seller’s who are concerned about finding a home to move into can include a home of choice clause in their purchasing agreement. This clause allows the seller to cancel the sale of the home if they cannot find a new home that fits their needs and preferences.
There is also the rent-back contingency that keeps sellers from going through the hassle of moving twice in a short time period. In this situation, the seller asks the buyer to allow them to rent out their old home for a specified period of time until they can move into their new home. If a buyer offers a home sale contingency, sellers can offer back a kick-out contingency that allows them to continue marketing the home despite being under contract.
Be aware that having contingencies in a purchasing agreement can negatively affect your chances of a buyer continuing with a sale. Contingencies complicate a home purchase and many buyers and sellers tend to avoid them. If you plan to use a contingency, you may have to compromise in other areas such as agreeing to a lower purchase price. Consult your agent about your concerns and get their expert advice on seller contingencies before putting the purchase agreement together.
Avoiding seller's remorse can be hard. But when in doubt, talk it out. Talk out your concerns with your family members, your friends, and of course, your real estate agent. Assess your finances to ensure you are in a good position and consider the reasons why you are selling your in the first place. Proper preparation and the right team will help you to feel more confident. The more conficence you have going into the selling process, the less seller regrets you will coming out of it!