The Most Common Causes of Home Buyer’s Remorse (and How to Avoid Them)
Whether it’s your first home or just the latest step up the property ladder, buying a home is a huge investment—financially and emotionally. Despite the stakes, searching for a home can be a rushed and stressful endeavor, fueled by tight deadlines, unstable financing and unpredictable market forces. So it’s no surprise that more than 80% of Americans experience some degree of regret after buying a home .
But buyer’s remorse during the house hunt isn’t something to take for granted. Most of these regrets are caused by a few common mistakes people make when buying a new home, and they can be prevented, or at least minimized, by following some simple tips. Here are the most common causes of home-hunting buyer’s remorse and how to protect yourself from it.
High level of service
Knowing that your new home will be a pit of endless and costly maintenance is one of the most common reasons why people feel remorse when buying a home. A home that seemed perfect when you walked through it on a sunny day can feel like a prison when you realize it’s difficult to keep clean and functional.
There are two easy ways to avoid this regret:
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Inspections. Nearly a quarter of home buyers forego an inspection when purchasing a home, but that’s a bad idea, according to real estate lawyer William London of Kimura London & White LLP. “Always do your due diligence and don’t waive contingencies to ensure your offer is accepted,” he says. “Repentance is often emotional rather than legal. Once escrow is closed, it becomes too costly or impossible to reverse.”
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Ask questions. The easiest way to avoid these types of regrets is to ask a lot of detailed questions about how often parts of the house need maintenance, costs, and repair history.
Another aspect of home maintenance are the fees associated with homeowners association (HOA) dues, which are used to maintain the common aspects of the property. Brandon Blakely, co-founder of Mirador Living, notes that HOA fees are often artificially low due to deferred maintenance. “Florida recently passed a bill (SB 4-D) that showed how widespread this problem is,” he says. “Once the buildings were forced to catch up on repairs, HOA fees skyrocketed and property values plummeted.” Always ask to see the fees and maintenance records of any property you believe is owned by an HOA.
Unknown infrastructure
When touring a potential home, it’s easy to get distracted by the trim, fresh paint, and the smell of cookies in the oven. But nothing brings homebuying remorse faster than a series of costly breakdowns right after you move in: The washing machine breaks, the water heater leaks, and the HVAC system stops blowing cold air, all within a few months.
To avoid these types of regrets, it’s important to not only check maintenance schedules, but also find out how old different parts of the house are. Request installation dates and warranty information for a list of home infrastructure, including appliances, HVAC systems, roofing systems , windows and sump pumps. Even if they don’t need to be replaced immediately, assessing how much time you have before you have to start spending money will prevent regret.
Succumbing to bidding wars
Real estate agents and home sellers love a good bargain, but it leads to a lot of regret when the dust settles and you realize you overpaid for the house. There are several psychological factors that push you into a betting war, but protecting against these types of regrets requires only one thing: a plan .
“Start with a good understanding of your price limits and stick to them,” says London. “Even at the height of the market.”
If you have a hard line on how much you’re willing to pay for a house (and therefore how much of a monthly mortgage payment you’re willing to commit to), you’ll be much less susceptible to bidding war hysteria.
Wrong size
A bigger home isn’t always better, and compromising on a smaller home than you really need (so you can squeeze into a certain area or because the home’s aesthetic appeals to you) is an easy way to wallow in regret. One factor that complicates these decisions: time. If you plan to stay in the home for a long time, you need to consider what your life might be like in a few years.
“House key – what things can’t you live without?” says Jeff Lichtenstein, CEO of Echo Fine Properties in Palm Beach Gardens, Florida. “If you have three kids, does having only three bedrooms mean you need to make a second move? In my case, I bought a house with a two-car garage and a short driveway. Once both kids had cars, there were a lot of ‘music cars’ that we were constantly moving around in.”
Lifestyle mismatch
A home is more than just a place to store things and sleep. It is an integral part of your life. When it comes to specific features or desired locations, compromise is often a mistake. “I heard a story about a family that desperately wanted to live on the coast but couldn’t afford it, so they bought a house inland and immediately regretted it,” says Heather Myers, co-owner of Snyder Real Estate Group in San Diego.
Another easy way to regret buying a home is to not pay attention to the neighborhood. Once you’ve narrowed your home search to a specific property, take the time to thoroughly scout the area to ensure it has the atmosphere, amenities, and access you need in your daily life. “We always advise our clients to make multiple trips to a new area at different times of the day, on weekends and weekdays,” says Myers. “We tell them to get out of the car and walk around the new neighborhood a few times.”
You also have to coordinate your lifestyle with the house itself. If you work from home and need a quiet, special office space to be happy, then buying a home without that spare bedroom is something you’ll probably regret. If you love throwing parties, buying a home that doesn’t have an open floor plan and comfortable outdoor space like a patio or deck means you’ll likely regret not choosing a different home.
The best way to deal with buyer’s remorse during the house hunt is to avoid it entirely. Myers is straightforward about your options if you don’t: “If buyers regret their decision, they usually have two options: They can sell immediately or rent out their new home and rent somewhere else.”