5 Common Homebuyer Regrets (And How To Avoid Them)
Most new homebuyers don't regret becoming homeowners. In fact, according to a survey by LendingTree, 80% of recent buyers who successfully overcame a challenging housing market say they're glad they found their current homes. But that doesn't mean newly-minted homeowners don't have any regrets about their buying choices. On the contrary, research shows that even the most-satisfied homeowners would change some aspects of their home purchase if given the opportunity. According to a recent survey by Anytime Estimate, nearly 3 out of 4 buyers who purchased a home in 2021 or 2022 still have a few regrets. Some question their decision to move to a neighborhood they still don't love. Others wish they had been less picky about where they lived so they could have paid less. Many are afraid they overspent or think they sacrificed too much in their rush to buy a home.
Here are some of the most common homebuyer regrets we see, along with our advice on how to avoid them.
REGRET #1: Spending More Than Necessary
No one wants to overpay for their new home purchase (and, luckily, with the right guidance, doing so is avoidable). But even if you've secured a winning purchase price, there are still plenty of ways to accidentally overspend. One of the most common ways to overpay? Choose the wrong mortgage. In fact, in today's higher-rate environment, this can be one of the riskiest mistakes a new buyer can make. According to a recent survey, for example, nearly three-quarters of homebuyers leave money on the table by not bothering to shop around for the best rate.
Lesson Learned: As long as you stick to what you can afford, buying a home can be a boon for your financial health. The longer you live in it, for example, the more your home is likely to appreciate in value and boost your long-term savings. To get the most value from your purchase, it's worth your time to compare financing options and shop around for the best deal. We also recommend getting a mortgage pre-approval before you start your home search so you know what's within reach. We can refer you to one of our trusted lending partners for help.
REGRET #2: Rushing Into a Home Purchase
In a competitive housing market, it's often necessary to act fast to secure a home. Rushing into a home purchase can lead to homebuyer regret. According to Anytime Estimate, for example, more than 1 in 4 homebuyers felt remorse over how quickly they sped through the home buying process. Getting swept away by your emotions can also lead to buyer's remorse. If you've found a home you love and are competing with other buyers, it can be tempting to overlook key details or bid more than you can afford. That's one reason it helps to have a professional by your side to calmly guide you through the process and ensure you act with reason, rather than emotion.
Lesson Learned: Buying a home is exciting, but if you don't keep your emotions in check or act too impulsively, you could make poor choices in the moment that are hard to undo later. To avoid making last-minute decisions that could backfire, know what you want, what you need, and what you can afford before you start your home search. We can help you set priorities so you’ll be able to move forward with confidence when the time is right.
REGRET #3: Miscalculating the Costs of Homeownership
Though real estate is a great long-term investment, it can be pricey in the short-term, often surprising homeowners who aren't prepared for it. According to some estimates annual maintenance could cost as much as 1% or more of your home's purchase price. Some buyers also forget to factor in additional ownership expenses, such as property taxes, insurance, and repairs. Failing to think through the costs of homeownership is one of the most common sources of homebuyer regret. According to Anytime Estimate nearly half of the homebuyers who regret their purchase said they underestimated how much they would spend to live in it.
Some homes cost more to live in and maintain than others. Even if you're certain that you can afford the average cost of homeownership, that doesn't necessarily mean that every home in your price range will fit neatly into your budget. Very old homes with unique maintenance requirements could be extra pricey to keep up. Similarly, homes with high HOA or condo fees could also eat into your monthly budget if it's not properly factored in from the beginning.
Lesson Learned: A home should help you build your wealth, not drain it. So it's important to factor in all the potential costs of living in a home—not just obvious ones like your mortgage payment and taxes. To ensure you don't get overextended, add up your estimated maintenance and repair costs, as well as any miscellaneous expenses that are unique to a particular home. We can help you with these estimates—and, if needed, present you with some less-costly alternatives.
REGRET #4: Underestimating the Time Required To Maintain or Renovate a Home
One of the most joyful aspects of homeownership is getting to relax in a home that's all your own. But if a home is too high maintenance, then you may not have time to savor it. Many homeowners love to spend their weekends puttering in their gardens or undertaking home improvement projects. But if that's not you, then you may not like living in a home with a big yard or with high-maintenance features, like a pool. According to a survey by Hippo, 47% of homeowners who feel some regret about their home purchase complain that too much maintenance and upkeep is required. Similarly, buyers who purchase fixer-uppers are often surprised by how much time it takes to rehab their new homes. Although buying a fixer-upper is a great way to save on the purchase price, you could come to resent it if it eats up all your free time.
Lesson Learned: Renovation and maintenance projects can be time-consuming and stressful. So beware of committing to a property that requires too much of your attention if you don't have the time or patience for it. With that said, home improvement projects can also bring a lot of joy and satisfaction to owners who like rolling up their sleeves. We have a lot of great providers we can refer for all aspects of home renovation. We can talk through the realities of homeownership with you and help you choose a property that will fit your personality and schedule.
REGRET #5: Choosing a Home That Doesn't Fit
Homeownership is often a better investment if you’re willing to stay put for at least five years. But if your newly purchased home isn’t a good fit, then you may not want to stick around that long. Many homeowner complaints come down to simple lifestyle issues: Although a mismatch may seem small at first, the problems can magnify if you make so many compromises that they interfere with your quality of life. Or, sometimes homebuyers can fall in love with a beautiful home and forget about practicalities. For example, a stunning kitchen can’t replace a needed bedroom or bathroom, or a sparkling pool may sit empty if the home requires a lengthy commute to your office. Make sure you set some guardrails during your home purchase so you don’t over-compromise or accidentally prioritize your wants over your needs.
Lesson Learned: When you’re dealing with limited inventory or a fixed budget, it may be necessary to sacrifice some items on your home wish list. But if you fail to secure your must-haves, you could come to regret your home choice. We can help you avoid an ill-fitting home purchase by working with you to set (and stick to) priorities and parameters before you begin your search.
BOTTOMLINE
No one wants to look back on their home purchase and realize they made a big mistake. We can help you avoid the pitfalls so you can buy with confidence. To learn more about how we work to ensure our clients’ satisfaction, reach out so we can talk about your current situation.
