We are noticing an uptick in Boston condo buyers making an offer on a home for sale and then backing out during the inspection phase, sometimes before the inspection perhaps because of COVID-19 and an easy
Sometimes home buyers will ask for a lot of repairs as a way to back out of a purchase. I had some buyers that did that a few years back. Instead of telling me that another home was on the market that they liked better, they came up with a lengthy list of repairs and upgrades.
A few years ago buyers could act as impulsively as they wanted, reports The New York Times: if buyers changed their mind, they could always sell at a profit. But in today’s market, many buyers have cold feet, “buying a home is more psychologically demanding, fraught with conflict and confusion.” For buyers, especially those without much capital to burn, deciding on a home can be extremely stressful, since it involves a long-term commitment. And for sellers, some of them refuse to sell now, even if it’s a good idea for them because they don’t want to feel regret or shame at having bought at the height of the bubble. Kathleen Gurney, the chief executive of the Financial Psychology Corporation in Miami, told the Times, “People will do anything to not regret how they feel.” The Times article also explores the differences in the market and people’s perception of the market. Even if this is a good time for some to buy or some to sell, we are pack animals, and when the pack is afraid of dealing in real estate, so is the individual. As Dr. Gurney said, potential buyers and sellers, would rather “be a part of a crowd, even a crowd of losers than stand out.”
If you are either a buyer or seller who has cold feet, your not alone. I think you’ll find this New York Times article In the Grip of Indecision interesting.
Source: NY Times
Are you a Boston condo buyer or seller on hold? If so tell us why?