How to Avoid Homebuyer's Remorse
If you’re a homeowner, there’s a 25 percent chance that you wish you hadn’t bought your current home.
That’s according to a survey conducted by the real estate brokerage Redfin. They found that 1 out of every 4 homeowners wouldn't have bought the house they currently own if they had the opportunity to go back and do it again.
There are a lot of reasons why people come to eventually regret purchasing their home. Sometimes they find that they don’t love the neighborhood like they thought they would. Sometimes the house comes with more maintenance and upkeep issues than they had anticipated. Sometimes the house simply isn’t big enough.
One of the biggest differences, however, appears to be financial capacity. Of current homeowners with a combined household income above $100,000, only 13% are remorseful of their purchase. Of those with a total income below $100,000, however, nearly one-third wish they hadn’t purchased their current home.
4 Ways to avoid homebuyer's remorse
Keep it in budget
Your total housing costs shouldn’t exceed one-third of your total budget. That figure is meaningless, however, if you don’t really understand what your budget is. Do a thorough accounting of finances and understand what your capabilities are – not just now, but in the foreseeable future. A lot can change over the course of a 30 year mortgage, but that payment will always be there.
What does the future look like? It’s impossible to be certain, but you can probably make some fairly accurate guesses based on your goals and current trajectory. A house that’s right for today might not be right for five years from now. That’s okay, as long as you’ve made peace with the fact that you’re going to have to go through the entire home buying process again in the near future. A better plan is to find a house that fits your projected needs.
Do your homework
Terrible pun aside, you can’t skimp on the research when it comes to investing in your home. Spend time and get a feel for the neighborhood – it’s going to a critical part of your living experience. Don’t skip the inspection, and don’t underestimate the cost of maintenance. The more work you do ahead of the purchase the less stress you’ll experience after the paperwork is signed.
Owning a home can be complicated business. Being a successful homeowner requires more than just the ability to get a reasonable loan. Here at MMI we offer homeowner educational seminars, in-person and online. It’s a great way to learn what it takes to buy and maintain a home. Check out our list of upcoming workshops. Even if homeownership isn’t in your immediate future, the more you know now, the more you’ll be ready when the opportunity presents itself.
Homeownership is a big deal, and it’s usually a goal folks work years towards achieving. So don’t let homeownership become a nightmare. Do the work and find a house that fits your personality and your goals – something you’ll love today and 30 years from now.
Article updated August 2020