Avoid these 5 common homebuyer regrets and be happy.
The majority of new homeowners say they have no regrets about their decision to purchase a home. In fact, a LendingTree survey reveals that 80% of buyers who navigated home purchases during 2021 & 2022's hyper-competitive seller's market express satisfaction with their current residences.1 However, this isn't to say that new homeowners are entirely free from regrets regarding their buying decisions.
Many homebuyers experience some level of regret after the purchase, often stemming from impulsive decisions or a lack of thorough research. However, with proper guidance and knowledge, you can avoid these 5 common pitfalls and make your home buying experience a smoother and more satisfying one.
REGRET #1: Spending More Than Necessary
One of the most prevalent regrets among homebuyers is overspending on their new home. It's easy to get caught up in the excitement of finding your dream home, but exceeding your budget can lead to financial stress and strain down the road. Here are some ways to avoid overspending:
Set a Realistic Budget: Before you even start browsing homes, sit down and create a comprehensive budget. Consider your current financial situation, your future goals, and any potential changes in your income. A general rule of thumb is that your monthly housing costs should not exceed 30% of your monthly income. Using a closing cost & monthly payment calculator will help you get a close estimate of house-buying expenses.
Shop For the Best Mortgage: According to a recent survey, a significant portion of homebuyers, approximately 75%, miss out on potential savings by neglecting to compare rates2, loan programs, or down payment assistance funds. Furthermore, research conducted by LendingTree reveals that individuals purchasing homes in major metropolitan areas incur an average financial loss of $63,151 throughout their loan's lifespan merely by accepting the first mortgage offer presented to them.3
REGRET #2: Rushing Into a Home Purchase
Impulsiveness can be a significant source of regret for homebuyers. Rushing into a purchase without proper research and consideration can lead to dissatisfaction with your home choice. To avoid this, take your time and follow these steps:
Do Your Research: Start by researching the real estate market in your desired area. With the help of a buyer's agent, understand the current trends, property values, and the availability of homes. Take your time to explore different neighborhoods and attend open houses.
Make a Wish List: Create a list of features and amenities that are essential to you in a home. This will help you narrow down your options and focus on properties that align with your priorities.
REGRET #3: Miscalculating the Total Costs of Homeownership
Underestimating the ongoing costs of homeownership is a common regret among first-time buyers. Many new homeowners are surprised by the additional expenses that come with owning a home. To avoid this regret, consider the following:
Know All Your Expenses: As mentioned earlier, create a comprehensive budget that includes all anticipated homeownership expenses. This should cover utilities, maintenance, & repairs, homeowners' association fees, and even lawn maintenance or landscaping expenses.
Plan for Emergencies: It's a given that you will encounter unexpected repairs and emergencies, such as a leaking roof or a malfunctioning furnace. It's wise to set aside an emergency fund specifically for these situations, so you're not caught off guard. Consider ordering a home warranty when buying your home. A home warranty can provide coverage on your home's major systems and appliances, giving you peace of mind and potentially saving you money on repairs.
REGRET #4: Ignoring or Skipping a Home Inspection
Another regret many homebuyers face is skipping or not paying enough attention to the home inspection process. A home inspection is a critical step in ensuring that the property you're purchasing is in good condition and free from major defects. Here's how to avoid this regret:
Hire a Qualified Home Inspector: It's essential to hire a licensed and experienced home inspector to thoroughly assess the property. Your real estate agent can recommend reputable inspectors. Be present during the inspection, ask questions, and seek clarification on any concerns.
Review the Inspection Report: Once the inspection is complete, carefully review the inspection report. Pay attention to any issues, big or small, that the inspector has identified. Discuss these findings with your real estate agent to determine the best course of action, whether it's requesting repairs or negotiating a lower purchase price.
Use Inspection Findings in Negotiations: If the inspection reveals significant issues, you can use this information in your negotiations with the seller. You may request repairs, a reduction in the purchase price, or credits at closing to cover the cost of necessary fixes.
REGRET #5: Purchasing Without Professional Help
Trying to navigate the complex process of buying a home without professional guidance can lead to numerous regrets. Real estate transactions involve legal, financial, and logistical intricacies that are best handled by experts. Here's why professional help is crucial:
Hire a Buyer's Agent: A knowledgeable real estate agent can guide you through every step of the home buying process. They can save you time by sorting through homes that don't match your wants and needs, advise you on an offer price and negotiate for the lowest price possible, prepare and manage all the paperwork, and provide valuable insights into the local market. Best of all, the buyer's agent's commission typically is paid from the seller's funds at closing, so you get expert help at no direct cost to you.
Legal Assistance: Real estate transactions involve legal contracts and documents. Having a real estate attorney review these documents can protect your interests and ensure that you fully understand the terms and conditions of the purchase.
Avoid FSBO Transactions: While "For Sale By Owner" (FSBO) properties might seem like a way to save money, they often come with risks and complications. Without a professional representing your interests, you may end up facing legal or financial issues down the road.
No one wants to look back on their home purchase and realize they made a big mistake. I can help you avoid the pitfalls so you can buy with confidence. To learn more about how I work to ensure my 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.
My name is Diane Bilke, Real Estate Professional & Texas REALTOR®
"All you buyers and sellers waiting for the rates to come down or the market to crash are keeping me up at night! Give a girl a break and let's do real estate!" -- Me
I help people find their way home throughout Travis and Williamson Counties in the great State of Texas. Specializing in Georgetown, Round Rock, Leander, Lago Vista, and Cedar Park.
Subscribe to my NEW YouTube Channel: @DianeBilke
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Call or Text to 817.291.5046. Email diane@realtytexas.com
1. LendingTree - https://www.lendingtree.com/home/mortgage/homebuying-process-survey/
2. 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
3. LendingTree - https://www.lendingtree.com/home/mortgage/mortgage-shopping-study/