Stock Groups

Majority of homeowners have regrets


Some buyers face regret as mortgage prices continue to climb alongside house prices.

Recent homebuyers have at most one regret according to recent surveyHomeLight, an internet real estate platform, polled more than 1,620 Americans earlier in the year. One of the top regrets — cited by roughly 1 in 5 of those surveyed — was underestimating the total cost of buying a home.

February Zillow surveyOf 2,000 potential homebuyers, similar findings were found: 75% had some regrets about buying a house. 38% had regrets that they didn’t spend more time looking for the right home.

Both surveys revealed that other common complaints were over the property’s location and buying too fast.

This is understandable, since the market is not favorable for homebuyers. Homes sell faster than ever, and bidding battles are frequent, sometimes with multiple offers over the asking price. Many buyers may have felt rushed to buy before interest rates rose furtherAs was generally expected.

The mortgage rates for new homeowners are almost 20% higher than three months ago. This adds hundreds of dollars to monthly expenses. Zillow studyPublished last week.

Lawrence Yun from the National Association of Realtors, chief economist says this regret is a sign that buyers may need to look at their finances. 

New buyers should “understand their maximum budget” before shopping for homes. He also advises them to adjust expectations when the home they desire is not affordable. If this is the case, buyers might consider looking for cheaper homes or other options, such as less space or a new neighborhood. 

Many new homeowners find it surprising to learn about the additional costs associated with owning property beyond the down payment and mortgage. This includes property taxes, insurance and condo fees. 

Some upfront costs can be very high. Buyers pay an average of 3% to 6% in closing costs. per Quicken Loans. The cost for an annual repair is based on a general rule. 1% of the total value of the homeFor a home worth $500,000, this is approximately $5,000 per year.  

Yun suggests that good agents should have a detailed understanding of the expectations so there is no surprise costs. The website is also available. Consumer Financial Protection Bureau’s guideHere are some things to consider when buying a house.

Get started now Get smarter about your money and career with our weekly newsletter

Don’t miss: Here’s how much the same mortgage costs now, compared to last year