This document discusses 3 common last-minute real estate regrets and how to combat them. The first regret is leaving money on the table by not negotiating harder for a better price. The second is feeling overwhelmed by the long-term mortgage commitment of 25 years. However, the alternative options of renting or paying cash are not usually feasible. The third regret is depleting one's cash cushion to meet down payment and closing costs, which can wipe out several years of savings quickly. The document asks realtors about common regrets they see and tips for handling them, and asks buyers/sellers about any regrets they have faced and how they overcame them.
2. Any time you make a major
commitment, financial decision or move to the
next step in your life, there’s a chance you’ll
have regrets at the last minute. Just as brides
and grooms commonly experience cold feet
before they walk down the aisle, many a home
buyer has found themselves sitting at the
table, pen paralyzed over paper, mentally
cataloging their last-minute regrets.
3. 1. I left money on the table - could have gotten
more (or paid less) for it. This regret showcases
a classic case of buyer’s - and seller’s - remorse.
The day an offer is signed, sometimes within
moments after acceptance, sellers second guess
whether they might have been able to get more
cash if they’d negotiated harder, and buyers
beat themselves up over not going in lower or
holding out against the seller’s counteroffers.
4. 2. I’m overwhelmed by the mortgage
commitment. 25 years seems like a long, long
time. But here’s the rethink: you need to live
somewhere forever, and I hope that your forever
will last 25 years times 4! So, unless you have
access to free housing somewhere, here are your
options:
• You can rent a home and pay rent to a landlord
every month for the rest of your life, or
• You can buy a home with cash, or
• You can use mortgage financing to buy a
home, and make payments on it over time.
5. 3. I can’t believe I went through all of my cash
cushion! In this relatively new mortgage
era, lenders are requiring buyers to put some of
their own skin in the game, by requiring down
payments in a way they once did not. Beyond
that, the vast majority of the down payment
assistance programs that once helped buyers meet
these requirements are now gone. As a
result, today’s buyers frequently spend a couple of
years saving up their cash, and optimizing their
credit creating strong financial habits and getting
used to having a fluffy cash cushion along the
way, then end up writing a couple of cheques, initial
deposit and cash to close - that wipe nearly the
whole thing out in 45 days or less.
6. Realtors: What regrets do you see buyers and
sellers express, and what are your tips for
handling them?
Buyers/Sellers: What about you? Ever faced
down regrets, valid or invalid? How'd you do it?
7. Randy Bett
Investment Realtor/Author/Investor
Real Estate Professionals Inc.
Better Group Real Estate
202-5403 Crowchild Trail NW
Calgary, AB T3B 4Z1
Phone:403-774-7464 Ext:1
Fax:403-208-0082
Toll Free fax:888-711-6801
