Buyer’s Remorse: What It Is And How To Avoid It

Whether triggered by overspending, impulsive choices, or unmet expectations, buyer's remorse is a common experience that impacts the majority of consumers at some point or another. Understand the causes of buyer's remorse and some of the practical strategies to navigate post-purchase regret.

What Is Buyer’s Remorse?

Common Causes Of Buyer’s Remorse

Nearly three-quarters of online shoppers (74%) report having feelings of buyer's remorse following a purchase. Remorse can sink in immediately or long after an initial purpose, with buyers citing numerous explanations for their purchase regrets.

● Went over budget: Buyer's remorse often presents itself when consumers exceed their budget on large purchases, such as a home. The initial excitement and desire for a dream property may lead to overlooking financial constraints. Notably, 30% of individuals express regret due to perceived overspending, highlighting the impact of financial decisions on post-purchase satisfaction.

● Underestimated maintenance and upkeep costs: In some cases, buyers may experience buyer's remorse after purchasing a home, but not immediately. It’s common for buyers to purchase homes that are well within their budget, but without accounting for the long-term maintenance costs associated with such a significant purchase. The initial enthusiasm surrounding a home, especially the fact that it’s within budget, may overshadow the necessary budgeting considerations required for long-term upkeep, leading to regret as the reality of unforeseen maintenance costs becomes apparent.

● Decided too quickly: Regret often creeps in when consumers make swift decisions regarding substantial purchases. When dealing with large purchases like homes, cars or electronics, we may overlook crucial details, especially in terms of property features or potential drawbacks. Post-decision, the realization of not thoroughly assessing the situation can lead to a sense of disappointment. Additionally, 63% of homeowners surveyed by Hippo, a home insurance group, would have preferred to wait longer before making their purchase.

● Charged high interest rates: Committing to a substantial purchase involves considering its financial importance, and when faced with high interest rates, buyers must be particularly vigilant. The burden of elevated interest can significantly impact the overall cost, making it crucial for individuals to assess and comprehend the long-term financial commitment associated with such transactions.

● Didn’t meet expectations: In the case of consumers carefully considering the financial implications of a purchase, both short- and long-term, it’s possible the purchase may not measure up to their standards. Individuals making substantial purchases can overlook crucial aspects during the decision-making process, only to realize later that the product or property falls short of their envisioned standards.

● Didn’t need it: In the excitement of making substantial purchases, where two in five Americans admit to buying something on sale and later regretting it, individuals might impulsively buy things they didn't truly need. Whether it's a home or any other significant item, the remorse stems from overlooking practical considerations during the initial decision-making process. 

Effects Of Buyer’s Remorse

While it’s sometimes short-lived or trivial, other times, buyer's remorse can have profound psychological and financial effects. The financial loss or regret after a purchase often leads to stress or anxiety as buyers struggle to grapple with the repercussions of their decisions. The psychological effects are often tied to cognitive dissonance, a state of discomfort arising from conflicting beliefs or attitudes. In the context of buyer's remorse, this occurs when the perceived benefits of a purchase clashes with the reality of dissatisfaction. Individuals may question their judgment, wondering if they overlooked crucial details or if a more deliberate approach could have prevented their regret. Common questions include: "Did I thoroughly research my options?" or "Did I succumb to external pressures instead of making an informed decision?"

Ways To Avoid Buyer’s Remorse

Avoiding buyer's remorse is about making careful choices when you buy, thinking about what you really need, and keeping your long-term goals and budget in mind.

1. Make A Budget

To avoid buyer's remorse, be sure to carefully assess what you can afford. One of the most effective ways of doing so would be to create a budget. Budgeting and financial planning prior to larger purchases help adequately combat making a purchase you may later regret. For home buyers, obtaining a mortgage preapproval is a wise and instrumental step in establishing a realistic budget. This process not only provides a clear financial picture but also helps mitigate the risk of overspending and subsequent regret, promoting a more informed and confident decision-making process.

2. Write It Down

Whether crafting a grocery shopping list or detailing desired features for a home, writing down your thoughts in lists can help consumers strategically visualize their needs, and can make them less likely to deviate from their intended goals. For example, a home wish list can prioritize essential features within budget constraints, guiding buyers toward properties that align with their needs and finances. This intentional list-making process acts as a preventive measure, increasing the likelihood of a satisfying purchase experience and reducing the chances of later dissatisfaction.

3. Start A Sinking Fund

Establishing a sinking fund is a financial strategy that involves creating a dedicated savings account for a specific goal. This account proves invaluable in preparing for substantial expenses, serving as a proactive measure to prevent buyer's remorse. Similar to the concept of saving for planned expenses little by little, a sinking fund enables individuals to contribute small amounts regularly, gradually building up the funds needed for significant purchases. This method alleviates the financial strain associated with large expenses, ensuring that individuals are well-prepared and less likely to regret their financial decisions.

4. Avoid Impulse Buying

Impulse buying refers to the spontaneous act of spending money without careful consideration. It involves making a purchase that prioritizes immediate satisfaction over long-term benefits. This behavior may be motivated by factors such as a lack of self-control, enticing sales or promotions, or even the allure of a particular brand. Taking the time to research, stepping back, or waiting for 24 hours before making a decision can provide a valuable buffer, allowing individuals to make more informed choices and reducing the risk of later regret.

5. Work With A Professional

Some of the most intense feelings of buyer's remorse come after big purchases like cars or homes. Whether it's a real estate agent or a car salesperson, consulting with professionals prior to committing to a big purchase brings valuable benefits and expertise. A trusted professional can provide expert guidance, helping buyers confidently navigate the complexities of a large purchase. By leveraging their experience, these professionals assist in aligning choices with the buyer's goals, offering support that goes beyond transactional details to foster a more informed and satisfying purchasing experience.

How To Get Over Buyer’s Remorse

Navigating through buyer's remorse involves a process of reflection and acceptance, allowing individuals to gradually reconcile their emotions and adopt a more measured approach to future purchasing decisions.

1. Return The Item

Returning the item that triggered buyer's remorse can offer significant relief. Things like clothing, gadgets, or household items are often returnable, allowing buyers to alleviate the burden of an ill-fated purchase. The act of returning not only provides financial restitution but also a sense of control, enabling individuals to correct their decisions and move forward with greater peace of mind.

2. Sell Or Donate The Item

If returning the item isn't an option, consider selling or donating it. Selling on platforms like eBay, Craigslist, or Facebook Marketplace allows for potential financial recovery while donating to charities or local organizations contributes to your community. This process not only helps alleviate the impact of the regrettable purchase but also brings a sense of closure and purpose, turning an unwanted item into a positive contribution. Exploring the best websites to sell your stuff can facilitate a smoother process for those looking to sell items.

3. Learn Your Buying Triggers

Understanding your buying triggers is a crucial step toward cultivating healthier spending habits, particularly for those prone to impulse shopping. By identifying the emotional or situational cues that lead to impulsive purchases, individuals can develop greater self-awareness and control. Whether it's stress, promotional offers, or emotions, recognizing these triggers empowers buyers to make more intentional decisions. This awareness allows individuals to navigate the purchasing process with a clearer mindset and minimize the risk of post-purchase regret.

Buyer’s Remorse Laws

Buyer's remorse laws offer legal avenues for individuals experiencing post-purchase regret. Notably, the Federal Trade Commission's Cooling-Off Rule provides specific rights for canceling certain types of sales. However, it's crucial to note that real estate transactions are exempt from this rule.

The Bottom Line

Buyer's remorse, a pervasive feeling of regret after significant purchases, is a challenge for many consumers. Overspending, rushed decisions, and unmet expectations often contribute to this phenomenon. To navigate and mitigate buyer's remorse, adopting practical strategies like budgeting, seeking professional guidance, and understanding personal triggers is crucial. These approaches empower individuals to make more deliberate and informed choices, fostering a more satisfying buying journey. Download the Rocket Money℠ app today to stay mindful of your spending.