Home seller’s remorse

Unhappy houseEveryone’s heard of home buyer’s remorse.  The same phenomena happens with sellers sometimes, too: seller’s remorse.  Incredible as it may seem to Silicon Valley home buyers, this can happen even in a strong seller’s market!  In fact, the remorse experienced seems to have little to do with the market conditions at that moment.

Seller’s remorse has everything to do with expectations.  Seller’s remorse comes from unrealistic expectations.  It also comes from agreeing to a list price which is less than what that seller will really accept when offers are presented. Sometimes it’s an “over the cubicle wall” event, when all’s fine until people not involved with the transaction undermine the seller’s confidence by saying “you sold for too little” or “you sold too fast” or other critical comments.

What happens when seller’s remorse makes an appearance? (more…)

Impulsivity and caution in home buying

What’s your home buying style?  Impulsive? Cautious? Analytic?  Deep bargain hunter?

A few times in my real estate career, I’ve worked with Silicon Valley home buyers who were so anxious to purchase a home that I was concerned that their impulsivity might be a cause for buyer’s remorse later.  When that happens, I try to slow them down a little – I’ll suggest “let’s look at least a few homes” if it happens that they want to buy the very first home they saw. Part of my fiduciary duty is to look out for my clients’ best interests, and sometimes that means putting the brakes on just a little (or telling them what they don’t want to hear).

Home buyer caution and impulsivity More commonly, it’s the other extreme that I see in our very well educated, extremely analytic population: paralysis by analysis or an overabundance of caution. (Sometimes it’s overabundance of bargain hunting.)

The vast majority of successful Silicon Valley home buyers are somewhere in between: they set up their priorities and goals (“I want to buy in the next 4 months at this price with this location or school and this type of property and size of home”). The clearer they are on their goals, wants and needs, the easier it is to help them get it – as long as they have realistic expectations. That is key!

Once – only once – I sold a Los Gatos house in which the husband purchased without the wife’s physically seeing it.  This is rare!  They had moved so many times that he understood precisely what mattered to her, and if the house met that list, he was good to go. (more…)