I think you’ll agree that buyers remorse is a real thing, especially among buyers of large ticket items, like houses and condos for example. About 1-in-5 first time home buyers suffer from a bout of ‘buyers remorse’. Thats around 20%, certainly a small portion of buyers, however enough to cause concern. Of those buyers who DO feel remorse, here are the 7 biggest regrets that they voice.
Buyers Remorse – 7 Biggest Regrets
Buying a home for the first time can be an exciting experience. However, for many first-time buyers, it can also be a learning experience. Roughly 20 percent of those who have purchased their first house regret at least one thing related to buying the home or the home itself. Let’s take a look at the most common regrets and how you can avoid making some or all of these mistakes yourself.
Regret #1- Not Negotiating Harder
In the excitement of finding a home, many buyers are eager to close the deal even if they don’t get the best deal overall. Some may believe that they have to take an advertised mortgage rate or buy the home at the price that it is listed at. Unless you are in an extreme sellers market, there may be time for negotiating before closing on a deal.
Regret #2- Paying Too Much for the Home
Many new buyers feel like they either overpaid for their home or put too much down. To get the best mortgage rate, it may be necessary to put 20 percent of the purchase price down before close. However, many lenders have loan options available for those who want to put 3, 5 or 10 percent down instead.
Regret #3- Not Buying Enough Home
It is critical to buy a home that is large enough to meet your current needs while also allowing for future growth. For instance, those who are planning to start a family may want a house with an extra bedroom or a play area for the kids. Self-employed buyers may want an extra space for a home office.
Regret #4- Not Preparing for Maintenance Costs
Homes can cost hundreds or thousands of dollars per year to maintain. This may be especially true for older or starter homes that are generally cheaper because they need work. Buyers should always conduct an inspection of the home to discover issues related to the roof, foundation and other vital components. Even minor repairs such as putting in a new water heater or fixing leaky pipes could cost hundreds of dollars. Part of this is also not preparing for the Closing Costs involved when purchasing a home.
Regret #5- Not Liking the New Neighbourhood
In addition to liking the home before buying it, you need to make sure that the neighbour is also acceptable. A good home located in an area where people stay up late, deal drugs or otherwise harass others is generally not worth what you pay for it. It may also be harder to sell when you are ready to leave.
In some cases, it may be difficult to simply rent out a home that is located in an area not considered to be desirable. Prior to buying a home, it may be worthwhile to look up crime statistics or other information. It may also be a good use of time to drive through the neighbourhood on a Friday or Saturday to get an idea of what its like to live there.
Regret #6- The Yard Isn’t to Your Liking
Home maintenance is something that you have to learn as you go. The same is generally true when it comes to maintaining a yard. It can be deceptively difficult to mow grass on a regular basis, handle dying trees or keep bushes or shrubs in good order. It may also be hard to handle raking leaves in the fall or keeping your driveway or sidewalks free from weeds.
Many new buyers also come to realize that they don’t like how small their yard is and would like something a little larger. If possible, it may be a good idea to get a sense of whether the grill or pool will fit in your outdoor space prior to buying the house. Those who have animals may also want to size up their yard ahead of time to get a good sense of how their furry friends will like it.
Regret #7- There Isn’t Anywhere to Park the Car
There are few worse feelings in life than knowing that you face a long walk after work because you were forced to park the car a mile away from the house. In some cases, you might have reserved parking or have to pay for a spot closer to your house. Those who don’t like the idea of leaving their cars on the street may want to look for a home that has a large driveway or a garage.
If you are buying your first home, you need to look past the excitement of being a homeowner and make sure that you are making the right decision. Typically, you have to live in a home for three to five years to build up enough equity to make the purchase worthwhile. Therefore, it is important that you find a place that you will want to stay in for the long-term.
Buyers Remorse Infographic
Infographic courtesy of Househunt.com.