Posts Tagged ‘Buyer’s Remorse’

House in Phoenix

My friend, Janet, who lives in Phoenix is planning to buy a house for herself.  Her last two purchases have been investment properties.  This one she’s going to live in.  Janet is very practical, but

“I feel very emotional about this,” she says.

Right.  Is IS emotional. But as long as you throw in some common sense, the decision to buy could be right for you.

Janet is doing it right. She:

1. Already owns her current home outright.
2. Has her emergency fund.
3. Is buying within her financial comfort level.
4. Is planning to live in the house for many years.

She’s working her plan.  It is scary though.  We’re talking about Phoenix –  property values have gone down tremendously in the past year.  There is a possibility values may continue go down in the next year. It won’t matter to her because she’ll still be in the house when they rise.

If you are thinking about buying, are you working your plan?  Are you keeping your wits about you, while at the same time realizing it is emotional?

Remember the fairy tale about Goldilocks and the 3 Bears?  It took her a couple of tries before she found the porridge and bed that was ‘just right.’  Searching for a property is akin to Goldilocks — if it doesn’t feel right, you shouldn’t buy it.  Even if all other factors are there — price, location, amenities — you don’t want to find yourself with a big case of Buyer’s Remorse.