7 Common Homebuyer Regrets (And How To Avoid Them)

To avoid buyer’s remorse, be sure to consider your future self when shopping for a home.

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.1 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.2

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 professional 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. And research by LendingTree suggests that buyers in major metro areas lose an average of $63,151 over the life of their loan just by picking the first mortgage they’re offered.

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.

REGRET #2: Rushing Into a Home Purchase

In a competitive housing market, it’s often necessary to act fast to secure a home. But don’t let a need for speed tempt you into making an offer before you’ve thought through or fully vetted a new property.

Rushing into a home purchase isn’t just risky, it’s also one of the most commonly cited sources of 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.

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.

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, for example, 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, for example, nearly half of the homebuyers who regret their purchase said they underestimated how much they would spend to live in it.

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.

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, for example, 47% of homeowners who feel some regret about their home purchase complain that too much maintenance and upkeep is required.

Lesson Learned: Renovation and maintenance projects are often 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.

REGRET #5: Ignoring or Skipping a Home Inspection

It’s easy to get swept up in the excitement of buying a home. Sometimes, buyers will agree to skip a home inspection to sweeten their offer in a competitive market. They may also be tempted to pinch pennies since they’re already facing a large outlay. However, if you skip out on a home inspection, you could come to regret it.

When you hire a home inspector, you get a professional, in-depth examination of the property’s structures and systems before you buy it. It’s a worthwhile investment that can save you money in the long run, either by warning you away from a bad purchase or by providing a list of deficiencies you can use to negotiate with the sellers.

Lesson Learned: A home inspection can reduce your risk and save you money in the long run. But to maximize its effectiveness, you will need to be an active participant in the process.

REGRET #6: 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.

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.

REGRET #7: Purchasing Without Professional Help

Another path to homebuyer regret? Foregoing the expert guidance and market insight that you can only get from a licensed real estate agent.

Buying a home without professional representation can be extremely risky. Therefore, it’s no surprise that 86% of buyers enlist the help of an agent when purchasing a home. And the vast majority find their assistance to be invaluable: 89% say they would use their agent again or recommend them to others.

Lesson Learned: When you work with a real estate agent, you benefit from a wealth of expertise and on-the-ground insight that you can’t get anywhere else. We’ll help you steer clear of the missteps that so many homebuyers make, so you can focus on enjoying your new home instead of questioning your choices down the road.

 

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 today to schedule a free consultation.

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

 

Sources:

  1. LendingTree – https://www.lendingtree.com/home/mortgage/homebuying-process-survey/
  2. Anytime Estimate – https://anytimeestimate.com/research/american-home-buyers-2022/
  3. Zillow Home Loans – https://zillow.mediaroom.com/2022-11-18-Prospective-home-buyers-spend-about-as-much-time-researching-new-TVs-as-they-do-mortgage-lenders
  4. LendingTree – https://www.lendingtree.com/home/mortgage/mortgage-shopping-study/
  5. CNBC – https://www.cnbc.com/2022/05/01/survey-majority-of-homeowners-have-regrets.html
  6. Hippo – https://www.hippo.com/blog/2022-hippo-housepower-report-how-homeowners-are-responding-essential-maintenance-during
  7. Realtor.com – https://www.realtor.com/advice/sell/how-soon-can-you-sell-a-house-after-buying/
  8. National Association of Realtors – https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers#homebuyers