| Back to Articles |
| Back to
Articles |
I have seen the effects of buyer and seller remorse disable people rendering them unable to think clearly. Remorse by definition is anguish caused by a sense of guilt. We all second guess ourselves for whatever reason. However in real estate transactions buyer and seller remorse may cause legal problems for one or more parties. After twenty plus years of marketing real property I recognize the symptoms of remorse and have identified the best ways for sellers and buyers to avoid or at least minimize the consequences of the condition.
I believe the operative words in our definition of remorse are anguish (or anxiety) and guilt. Anxiety to me is synonymous with fear and fear lives where lack of knowledge resides. The remorse in real estate transactions often goes beyond fear and the quilt factor generally involves a fear that something has been overlooked.
Fear is a powerful emotion. Buyer and seller remorse occurs most often AFTER all of the legal documents have been signed by all parties. The buyer, seller or both fear that the perceived risks out weigh the perceived potential benefits. Said another way, one or more parties feel that the potential for pain is greater than the potential for pleasure.
I tell clients that they WILL feel remorse at some point in their transaction(s). I suggest you expect remorse, prepare for it and set it aside when it occurs. There is a time in every real estate transaction when risk management ends and trust begins. The time to prepare is early and as completely as possible.
The best way I've found to avoid remorse in real estate transactions is to acquire as much information about the process as possible. At our first meeting, I give every client copies of each form they may sign during the buying and selling process. Contract forms are not pleasurable reading. An average real estate transaction in the KC Metro area utilizes nine to eleven legal contract pages. Removing the fear of the forms can go a long way toward eliminating or minimizing the potential for remorse.
Before making the decision to buy, sell or both, write a list of positive and negatives. I call this a Ben Franklin list. Draw a line down the middle of a blank sheet of paper and list all the good things on one side of the page and the bad things on the other. Ask yourself what is the worst thing that can happen. Analyze why you want to move. Involve the entire family as input from everyone involved will decrease the chance of remorse. If the positives out way the negatives on your list and a vote is made to move forward, just do it and don't look back. When remorse occurs you will be prepared.
Whether you’re thinking about buying or selling or merely seeking information, rely on me to provide accurate up to date information about the marketplace today.
Send me an e-mail message and ask to be added to my Real Estate Matters e-mail mailing list. Every two weeks, you'll receive a copy of my most recent issue automatically in your e-mail.
| Back to Articles |