With the convenience of online shopping and an abundance of items to choose from, we often make irrational shopping decisions that result in feelings of regret as soon as we purchase something.
No doubt you’ve experienced this at least once, but did you know this is a well-researched phenomenon with a proper name?
In this guide, we’ll tell you all about buyer’s remorse, along with tips on how to get over it.
What Is Buyer’s Remorse?
Simply put, buyer’s remorse is a feeling of anxiety or guilt after making a purchase. This can be a minor item, such as a donut on your way to work, or a significant purchase, like buying a car or property.
Potential Reasons
There are several reasons why people feel regret after purchasing something:
- They immediately feel they could have found a better deal.
- They bought something they couldn’t afford.
- The purchase of the item will drive them into debt.
- They buy things they don’t really need, usually on Black Friday or during holiday shopping.
Buyer’s remorse isn’t rare, as 64% of American adults admitted feeling guilty after purchasing an item.
Furthermore, it has been reported that people regret mostly smaller purchases as opposed to bigger ones, such as clothes and electronics. It has also been found that men and women equally experience buyer’s remorse.
Finally, younger people are more prone to experiencing buyer’s remorse, as 70.8% of Gen Z respondents admitted regretting their purchases. In contrast, the Silent Generation reported experiencing buyer’s regret in 34.5% of cases.
When it comes to larger purchases, seven out of ten people who buy a new car and 44% of people who purchase a new home experience buyer’s remorse.
Why Do We Experience Buyer’s Remorse?
When we make a purchase, no matter how big or small, we go through a period of post-purchase rationalization where we try to convince ourselves we made the right decision. But even the slightest doubt can lead to buyer’s remorse.
Thoughts such as “Do I really need this car?” or “I wonder if I could have gotten a better deal” might bring us severe discomfort that can appear minutes or years after making the purchase.
Three main factors affect how deeply we might feel buyer’s remorse:
- Time spent researching and financial resources invested
- Length of commitment to the purchase
- The blame we project (either on ourselves or marketers and salespeople)
In short, the more you commit to the purchase, the higher your chances of experiencing buyer’s remorse.
Many experts believe buyer’s remorse happens because of the psychological idea of cognitive dissonance, which is the mental distress that stems from holding two conflicting beliefs.
For example, if you’re by nature a frugal spender who is used to saving money, but you’ve just spent a fortune on a new car you can’t really afford (even though it is not the most expensive car on the market), you’ll feel anxious because your beliefs don’t align with your actions.
Other factors that come into play are:
- External stimuli — sales, personalized marketing, advertisements, etc.
- Interpersonal influence — relying on a friend’s expertise when buying electronics, purchasing the latest phone model to look better in the eyes of your peers.
- Impulse purchases.
- A plethora of choices when purchasing something.
How to Avoid Buyer’s Remorse
Buyer’s remorse is most likely hard-wired into our minds, so it’s difficult to avoid it altogether. However, there are certain healthy shopping habits you may exercise to reduce the amount of guilt you feel.
Set Firm Boundaries When Shopping
A typical buyer’s remorse example is making an impulse purchase and later regretting it. Before making a purchase, ask yourself this simple question: “Is this something I really need and will use?”
More often than not, the answer is no. In that case, take some time to consider before buying something. Try sleeping on it or discussing it with a friend or relative.
Buy Experiences, Not Items
While buying objects often leads to buyer’s remorse, we are far less likely to regret buying concert tickets, dance lessons, or meaningful trips. In fact, research shows we’re far more prone to regret missing out on an experience rather than spending money on one.
This is because we perceive experiences as unique to ourselves, as opposed to the interchangeable nature of the items we buy.
In a way, the memories we create from these experiences create a long-lasting high we remember much longer than the instant relief we feel after making an impulse buy.
Research Well Before You Buy
If you don’t do thorough research before purchasing an item, it’s high time you began. The more information you have about the product you want, the easier it is to remember why you purchased it in the first place, thus avoiding buyer’s regret.
Avoid Using Credit Cards
This will help you stick to your budget and keep you from accumulating credit card debt. As cash is more tangible than credit cards, you’ll think twice before paying from your wallet.
It’s always a good idea to educate yourself on what credit cards do and how to get the best of them.
Make Shopping Lists
And stick to them! These will help you avoid unwanted purchases and make you stick to your budget.
This tip is also helpful when making a larger purchase, such as a car or a house. Simply make a list of all the necessary features you want and set a budget. If you stick to your decision, you’re far less likely to regret it later.
The Cool-Off Rule
The prevalence of guilt after making a purchase has led to a buyer’s remorse law, known as the cool-off rule.
The cool-off rule allows you to cancel certain sales three days after concluding the sale at the latest.
But do remember that not all sales are covered, such as sales under $25 made at your home, sales made online or by phone, or sales made to manage an emergency.
However, it will give you enough time to reconsider your decision and cancel it if you feel this is right.
How to Prevent House Buyers’ Remorse
Most of us can get over buying a clothing item we don’t need, but what happens if you regret buying a car or even a house?
While regretting big purchases isn’t rare, there are simple things you can do to prevent it from happening.
Thorough research and a checklist will be your best friends in this case. For instance, some things you might want to consider when buying a new home are:
- Local crime rates
- Number of bedrooms and bathrooms
- Accessibility
- The proximity of shops and supermarkets
- Schools and employment opportunities
- The weather
- Potential to add value to the real-estate
Taking all these things into account will also help you budget more effectively when buying a home. A checklist of additional expenses you may have overseen is also a good idea.
What to Do If You Regret Buying Your New Home
If you buy a house and still experience homebuyer’s remorse, try talking to a relative or a friend with no stake in the property ownership or speak to a financial advisor to see if your concerns are rooted in reality or just a byproduct of your overthinking.
In the end, try to look at the positives — remember why this was the house you wanted in the first place, and focus on the cons instead of dwelling on every downside you can find. If everything else fails, remember you can always sell up and move on.
4 Steps for Getting Over Buyer Remorse
The first step is to assess why you feel remorseful. Maybe the product didn’t live up to your expectations? Maybe the market conditions have changed, and the value of the shares has plummeted.
If you can identify what went wrong and make a plan for how you will learn from this experience, then buyer’s remorse may be less likely to take hold again in the future.
This information will help clarify your thinking and remind you not to make similar mistakes in future investments.
If your feelings match the buyer’s remorse definition above, here are some other things you can do to get over it as soon as possible:
- Talk to a therapist — Talking to a therapist can be helpful in processing your feelings and helping you to understand why you’re experiencing buyer’s remorse. This can help you work through your emotions and move on from them.
- Write down your thoughts — Keeping a journal can be helpful in focusing on your feelings and writing them down in a way that you can access later on. It can help you process and understand your emotions better, and it can reduce the stress of the situation.
- Take some time for yourself — Sometimes, the best way to get over buyer’s remorse is by taking time for yourself. This might involve going out with friends, spending time at home, or simply doing something you enjoy. Just make sure that you don’t spend too much time alone — it can be easy for buyer’s remorse to take over if you’re not interacting with others.
Hopefully, these tips will help you get over your feelings of buyer’s remorse as soon as possible!
Conclusion
The easiest way to define buyer’s remorse would be that is the feeling of anxiety and guilt we feel after making a (big or small) purchase. While buyer’s remorse isn’t a rare occurrence, there are still many things we can do to alleviate it.
Ultimately, the best thing you can do is learn from your experience and adopt better shopping habits to prevent it from occurring in the future.
When it comes to larger purchases, such as buying a home, it’s always good to evaluate the wishlist you made before purchasing the property and make the house feel like home by building a new routine and decorating it with items of sentimental value.
FAQs
What does buyer’s remorse mean?
Buyer’s remorse is the overwhelming guilt we feel after purchasing something, either with smaller items or significant purchases.
It’s rooted in fear of overspending, worrying about the decision, thinking you’ll find a better deal, or simply because you realize you purchased something you don’t need.
How long does buyer's remorse last?
There really isn’t a straightforward answer to this question, as everyone is different. Are you someone who’s ridden with anxiety and tends to doubt the decisions you make? Then you’ll likely be plagued by your choices for a longer time.
In short, you’ll be plagued by feelings of remorse as long as you allow it. The sooner you realize you can’t undo your decision, the sooner you’ll be able to move on and adopt better habits.
How do you deal with buyer's remorse?
To deal with guilt and anxiety about buying something, you can research thoroughly, use cash instead of credit cards, avoid online shopping, and make a shopping list and stick to it.
Furthermore, it might help to educate yourself and find out — “what is buyer’s remorse”? — and what you can expect.