Real Estate Remorse: The Often Silent but Sad Truth
Homeowner regrets
You wanted a home with a big front porch but got a rear patio instead. A big fenced backyard with a pool? No, you ended up with a postage stamp sized lot in the middle of a bustling metro area. Thought you bought in a quiet neighborhood because the open house was on a lazy Sunday afternoon? Unfortunately the next door neighbors were just sleeping off their every-Saturday-night party hangover.
Real estate regrets are many, and homeowners are quick to admit what they wished they had known before they took the leap.
While a survey by Chase found nine out of every ten buyers felt prepared when they bought their home, after the fact, more than half (56%) wish they had known more about the financial process involved in buying a home. An alarming 68% of millennials reported buyer’s remorse and wished they were more prepared going into their home purchase compared to 55% of Gen X and 35% of Baby Boomers. (Bank of the West).
The loan closing process was at the top of the should-have-known-more list (22%), followed by making an offer and negotiating (19%) and financing (15%), (Chase).
Nearly four in ten (39%) said that knowing what they know now, they would have bought a different-priced or different-sized home, perhaps even in a different neighborhood. Many homebuyers were surprised by how long the purchase process took too, as 40% said it took longer than they expected.
More than one-third (34%) said owning a home cost more than expected. And while more than 80% of buyers considered their home move-in ready, nearly as many (76%) now admit they’ve done, or are planning to do, renovations to their home soon.
A survey fielded by Trulia found similar results. Just over half (51%) of homeowners have regrets about current home/process of choosing home and one third (33%) of homeowners wished they had chosen a larger home.
Avoid regrets with technology
The saving grace is that there are some great web-based tools now that can help combat this wave of regret by offering potential homebuyers new ways to avoid these costly mistakes and pitfalls. These tools usher in a new era for people to do their own homework and financial planning before they buy.
For instance, Mint.com is a website devoted to helping you track your spending. You can calculate your overall financial budget and monitor your spending habits. CreditKarma.com is another great free website for you gain insight into your credit score and understand how that impacts your ability to buy a home. And if you are wanting more of a one-stop destination for planning your home purchase, try Nestiny out!
Our straight-forward user experience has taken the scary and overwhelming task of embarking on a home buying journey and created a friendly, educational environment to be a homebuyer’s first stop before house hunting. By embedding real expert tips and tricks and great new tools like Journey Homeward and the True Affordability Tool, homebuyers can do their own homework at their pace and convenience and find out how much they can truly afford before they sign on the dotted line.
All of these technology-rich tools make it much easier for future homeowners to not make the same mistakes many past homeowners have made. Hooray for the new generation of homebuyers!
Want more advice about all things home — including homebuying or selling advice? Nestiny is a great place for homebuyer education and to help you gauge how ready you are to buy a home. Journey Homeward allows you to enter all your wants and needs while the True Affordability Tool will break down your budget, showing what you can comfortably afford. You will also receive a Ready Report that will give you a vital head start in the home buying journey, saving you valuable time and money.
