Buying a home generally represents the largest purchase a person will make during their lifetime. Regardless of if the home purchased is a condo or a single family detached, scoring a fair price is the only way to ensure that buyer's remorse (a buyer's emotional response to a sales transaction) is not a side effect of the purchase.

Buyer's remorse has become an increasing trend in the real estate industry, compounded by the volatile nature of the current marketplace. Even though the fair market values of homes have been slashed nationwide, home values are still retracting. That means today's real estate bargain may look like a huge wasteful expense tomorrow. Consumers on the verge of regretting their home buying decision can implore some simple steps to keep their emotions in check.

Make Sure to Get a Fair Price

The quickest way to ensure that buyer's remorse will rear its ugly head is by not getting a fair price on the property from the get go. That is why home buyers not only have to take the time to find the best mortgage rates for financing the purchase, but also must conduct their due diligence to ensure that the price paid is a fair one.

The process of evaluating the fair market value is not complicated, but does require some effort. While individuals may be able to get some sage advice from the real estate agent they use to manage the home purchasing process, that third party is out to make the most money on a deal and may put the buyers interests second to their own. In order to mitigate, consumers should implement some steps on their own including:

• Research Comparables: Home buyers need to compare the property in question to properties recently sold in the area and the listed prices of local homes on the market. Additionally, consumers should take a look at similar homes that did not sell as that may indicate they were overpriced. By taking the time to make those comparisons, individuals can properly gauge if the home they are eyeing is fairly priced.
• Local Market Trends: While some housing markets have already rebounded, others are still experiencing declines in regards to fair market value. Home buyers need to figure out their specific market conditions so they can negotiate a price that sits well with them.
• Buy From a Private Seller: The current real estate market is flooded with properties that are real estate owned and offered through private sellers. Since REO properties tend to already have pricing discounts, private sellers will lower their prices to compete. Additionally, homes that are being directly sold by the owner do not have to have an added cushion for a real estate broker commission, meaning that the prices can be lowered further.
• Splurge on an Appraisal and Home Inspection: Lenders require home buyers to pay for an appraisal to minimize their risk of owner default caused by underwater mortgages. That unbiased opinion will indicate if the price being paid is fair and lenders may back out of a home mortgage relationship if they feel otherwise. A home inspection (which occurs after a home has entered contract) can unearth improvements that need to be made and can allow for wiggle room in the final price negotiation.
• Go With Your Gut: If you love the home and have taken the steps to get a fair price, then go for it.

Give It Time

Success is in combination of luck, effort and timing and while a home purchase may feel great today, buyer's remorse can be caused by unpredicted real estate market declines. However, those who commit their home purchase for the long run will naturally feel their buyer's remorse dissipate as normal market conditions will eventually return.

Take the case of JayDee, a condo owner in Hollywood, California. JayDee bought her REO property two years ago at a substantial discount. At that time, she knew she was scoring a huge bargain as neighborhood comparables indicated a savings of around 30 percent. Unfortunately, in that time period, property values have continued to drop on comparable condo units and have dragged her home value down with it.

Instead of getting buyer's remorse, JayDee has faith that in ten years time, her property will reach the price paid plus the amount she paid for some smart renovations. Plus, she knows that even if she had postponed her home buying decision to capture the new market lows in her hood, she would have been paying rent for the past few years instead of building valuable home equity and getting some sweet tax breaks courtesy of mortgage interest.

Just Do It

Regret is a part of life and research published Social Psychological and Personality Science has shown that regret over missed opportunities is longer lasting then remorse over a bad decision made. While buyer's remorse is a legitimate concern that will have psychological impact in the short term, regrets over not buying a home now can haunt someone for a lifetime.

Individuals who have the down payment and credit needed to qualify for the best rates available, should work on pursuing the American Dream now or risk the chance of a lifetime of regret. Focusing on getting a fair price and making a long term commitment backed by a great mortgage from Mortgage Marvel, the industry's premiere mortgage rates origination tool, will keep buyer's remorse at bay.