Many say they underestimated costs of homeownership.
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Almost two-thirds of those aged 25 to 40 say they have at least one regret about buying their home, according to the latest Bankrate survey, CNBC reports.
The most common regret for 21% millennials and 16% of all homeowners? Underestimating maintenance and other hidden costs.
Mark Hamrick, Bankrate’s senior economic analyst and Jessica Lautz, Vice President of Demographics and Behavioral Insights at the National Association of Realtors, share tips on preventing buyer’s remorse:
Build up savings
Have a large cushion in reserve for sudden changes and costs that come up. “The need to save almost becomes more important after one owns a home because there’s more risk with respect to the expenditures,” Hamrick says.
Avoid the temptation of rushing in. Lautz encourages being deliberate about researching the location and size of the homes you’ll see. That will streamline your strategy when it comes to bidding time.
And remember that about 69% of all homebuyers make some type of comprise, according to the NAR’s research.
Lautz suggests looking at the property from different angles. Ask yourself what it means to live there for years or even decades.
And be sure to get the proper inspections done — even if it means spending more upfront. “The home inspectors are there to help you and understand all of the systems within that home,” Lautz explains.
Homeowners spent an average of more than $13,000 on household projects last year, according to HomeAdvisor’s new 2020 State of Home Spending report. That means that homeowners should plan to spend 1% to 3% of the home’s purchase price on annual maintenance.
And despite a few regrets, Hamrick says the overall feeling for homeowners is pretty positive.
“On balance, most people are happy that they made the decision to buy.”