Buyer and seller remorse and how to mitigate feelings of regret when buying or selling a home

What is buyers and sellers remorse?

Buyer’s remorse and seller’s remorse are common feelings that can arise after buying or selling a home. Buyer’s remorse is the feeling of regret or anxiety that a buyer may experience after signing a contract to buy their home. And seller’s remorse is the regret or unease that a seller may feel after signing a contract to sell their home. These emotions can stem from a variety of factors such as:

• Feeling like the home was not worth the price paid (i.e. they overpaid)
• Worrying about having made the wrong decision
• Worrying about potential issues with the property or the neighbourhood
• Worrying about whether changing neighbourhoods was a good idea

This article explores the causes of buyers and sellers remorse as well as strategies for coping with these feelings and making more confident purchasing and selling decisions.

How do I buy and sell a home with confidence?

The greatest prevention tool is for buyers and sellers to plan and research before entering into a transaction.

For sellers – selling in a market that is on the rise is always more favourable than selling in a declining market. We all aim to sell when prices are at their peak and buy when they are at their lowest. However, achieving these goals is often a matter of luck rather than a result of careful planning. To prevent regret as a seller, it is important to make a well thought out decision before selling. If the market continues to climb after you have sold, you can take solace in knowing that you secured the highest possible price on the day of the sale.

For buyers - obtaining and conducting building and pest inspections are crucial steps in the due diligence process when purchasing a property. Building inspections help identify any structural issues or defects in the property whilst pest inspections check for presence of pests that could cause damage. Our previous article also explains some other mistakes buyers may make and how to avoid these, linked here: lawlab.com.au/blog/common-mistakes-home-buyers-make

Due diligence on the property involves researching and gathering information to make an informed decision. This includes reviewing the property’s title, zoning regulations, previous sales history and any potential risks or liabilities. It is also advisable to consider factors such as location, market trends and future development plans in the area.

By conducting thorough due diligence and research before entering into a contract (or during the contract’s conditional period) buyers can make more informed decisions when purchasing a property. These steps help identify any potential issues or risks, allowing buyers to negotiate a fair price and proceed with confidence in their investment.

What are the consequences if I change my mind?

For buyers, backing out of an unconditional contract can often result in losing their deposit and facing legal action from the seller to recover any losses incurred as a result of the buyer failing to complete the contract.

For sellers, changing their mind after signing a contract can also have significant legal implications. The buyer may be able to sue for specific performance of the contract or terminate the contract and claim for any costs and damages.

It is important for both buyers and sellers to carefully review and understand the terms of the contract before signing to avoid the potential legal consequences and significant costs if they change their mind. Seeking legal advice and consulting with legal professionals like lawlab can help navigate the complexities of property transactions and minimize risks.

Irena Kimoska

Legal Advisor

Irena is a Legal Advisor at Lawlab. She has held multiple positions within the firm. Starting out in the Settlements Team at our Nyngan office and moving to Melbourne as a Legal Advisor. She has settled properties all over Australia with experience in each state and territory.