According to a recent Bankrate survey, 64% of millennials home buyers have some regrets about their new home. Purchasing a new house is one of the major life decisions that the buyers are bound to do thorough research before finalizing it. However, the regrets arise majorly because,
- they look for a perfect home so often overlook the price
- they over compromise because of the competitive market
Here are the three regrets of home buyers as per the survey. Read till the end to know how you can avoid such regrets while buying a new house.
Cost of ownership
More than 20% of millennial homeowners said they felt the costs of homeownership were too high.
Purchasing a house is not a one-time expense. The buyers generally forget to consider the maintenance cost that comes along with the house. Repairs and replacements of appliances is also a significant expense one can face.
Millennials were also the most likely to say they didn’t get a better mortgage rate or overpaid for the property. For example, 12 % of millennials said their rates were too high, and 13% said they agreed to a sale price that was more than it should have been.
Compromise on the house itself
Millennials again were the most likely to be unhappy with their new home’s physical characteristics. According to the survey, 15 percent of respondents from that generation said they disliked their new property’s location. Meanwhile, around 30 percent felt the home was not the apt size.
Now let us see how home buyers can avoid regretting their purchase
- Stick to a budget
Though you cannot spend as per your exact budget, try to have a waiver percentage and make sure you do not shell out from your pocket more than that.
- Meaningful compromises
Browsing through houses after houses in a competitive market can be frustrating. Adding pandemic to it, you might feel like settling for whatever comes your way. Try not to make any radical decisions that you will regret later. For example, finalizing a house in a non-school area when you have kids is not the right compromise to make.
- Fund for the house
Always have a separate fund for house infrastructure expenses. Bi-monthly or quarterly, check the inspection report of your house to anticipate the maintenance that likely to come up and check whether you have sufficient funds to meet the expense.
- Real estate agent
If all these measures are a lot of work for you, do not worry. You can share this load with your real estate agent. A competent real estate agent has the expertise and knows the market better. They will not develop any emotional attachment with the property; it will help in differentiating between your need and the want. The agents can help you financially by finding a property as per your budget and by helping to get a better mortgage rate.
Purchasing a house can be overwhelming. Nevertheless, by following the basics, you can escape from lifelong remorse and live with complete satisfaction.