Given the strength of the market throughout 2021, a lot of sellers find themselves afflicted by seller’s remorse.
Buyers who have bought a property often suffer buyer’s remorse. Buyer’s remorse stems from a sense of guilt or regret from the buyer that they bought the wrong home or over paid. Seller’s remorse works in reverse where the vendor feels they sold at the wrong time and/or for the wrong price.
Sellers who sell before buying in the name of safety can get caught out in strong markets such as we have experienced during 2021. It is a horrible feeling to sell into a rising market only to see prices on your proposed purchase rising whilst you are ‘out of the market’. This is why many people, wisely or not, choose to buy before selling in a strong market.
Another cause of seller’s remorse is vendors that are not following the market closely. They sell for what seems a high price. Only when they enter the market as a buyer do they realise they sold for a high price, but not the highest possible price.
The greatest prevention of seller’s remorse is planning and research before transacting. If you research the target markets that you intend to both buy and sell in, you will have a nuanced understanding of current market prices.
If you do plan to purchase prior to selling, it is crucial that you get a delayed settlement on the purchase. This allows enough time to run a full and patient campaign to achieve full market value for your existing home. If you are pressured or committed to sell a property, you may find yourself being crunched by circumstances (or your real estate agent). Anyone that is crunched in a real estate transaction usually ends up being afflicted with remorse.
High pressure sales tactics lead to remorse for the client after the transaction. As a client of the agent, you need to decide whether you are being given decisive market
intelligence or are a potential victim of a high pressure sales tactic.
Be wary of sales people that don’t allow you time to think. Every sales training book ever written has a section on how to overcome ‘we want to think about it’. As a lawyer once mused, ‘real estate agents move quickly and lawyers move slowly, they both do so for the same reason. They both know that people change their mind’.
Selling into a rising market is preferable to selling out of a falling market. We all want to sell at the top of the cycle and buy at the bottom of the market. Anyone who achieves either of these objectives usually does so from luck more than planning.
To avoid seller’s remorse, ensure that any decision to sell is a considered position. If the market continues to rise after you have sold, you can be comforted in knowing you achieved the best possible price on the day you sold.
Article taken from Harrispartners.com.au