64% of millennials have regrets about buying their current home

Nearly two-thirds, or 64%, of millennials (ages 25 to 40) say they have at least one regret about buying their current home, according to a new poll of more than 1,400 homeowners. US housing from Bankrate.

According to the survey, only about 45% of Generation X (ages 41 to 56) and 33% of teenage women (ages 57 to 75) said they have little regrets about their current home. But overall, there are some dissatisfactions that are fairly common: about 43% of all homeowners have at least one regret about their home.

“These purchases, even for the well-qualified, can be a leap of confidence,” said Mark Hamrick, senior economic analyst at Bankrate. People tend to focus so much on actually being able to buy a home that it often feels like everything else will work itself out once the initial purchase is complete, he says.

“The reality is that it is just the beginning of the experience of being a host,” says Hamrick. After the initial excitement wears off, many homeowners are left with only one or two regrets, which they wish they would have done differently.

Jessica Lautz, vice president of demographics and behavioral insights at the National Association of Realtors, says many homeowners, especially younger buyers, have to compromise on homes. that they intend to buy. According to NAR research, about 69% of all homebuyers make some sort of home, including the price, condition, and size of the home.

“You’ll never have it all on your wish list, so you usually have to make at least some compromises because money is a factor in the biggest financial transaction of your life,” she said. Those compromises can lead to feelings of regret.

But just because homeowners may have some apprehensions doesn’t mean they wish they would never buy their home. “On balance, most people are happy they decided to buy,” says Hamrick.

Among all homeowners, including the younger generation, the most common regret is underestimating the maintenance costs and other hidden costs associated with buying and owning a home. About 16% of homeowners (and 21% of millennials) consider this a regret. Other types of regrets focus on the size of the home and the finances involved in the process, including mortgage payments and rates.

Beth Holmes-Roberts, 38, and her husband bought their first home in January 2019. The 60-year-old home in San Antonio includes four bedrooms and two bathrooms and is listed for $195,000. “We actually walked into the house the first day we looked and said, ‘We need this,'” says Holmes-Roberts.

While Holmes-Roberts says owning a home is a blessing, especially amid the Covid-19 pandemic, she wishes she had done a little more research on the home buying process like ahead of time, especially around mortgage procedures. “It was like a whirlwind of activity that ended with us standing in front of this empty house with our keys, ‘OK, here we are,'” she said.

Home maintenance is an ongoing challenge, says Holmes-Roberts. Over the past two years, they’ve done a lot of plumbing repair work, including fixing toilets and bathtubs that don’t drain properly. They also had to replace their entire garage door. All of the family’s stimulus payments over the past year, more than $6,500, were spent on home maintenance.

Holmes-Roberts said.

Last year, homeowners spent an average of $13,138 on household projects, according to Home Mara’s new State of Housing Spending 2020 report. While those costs can vary depending on where you live and the age and condition of your home, homeowners should plan to spend 1% to 3% of the home’s purchase price on maintenance. annual.

That means if your house costs $300,000, you should spend at least $3,000 per year on repairs and maintenance.

If you’re looking to buy a home in the near future, Hamrick and Lautz say there are several steps you can take to help reduce buyer remorse.

Accumulate your savings

The most important thing is to have a sizable savings mattress. Think of it like a poker game, says Hamrick. If you’re shoving all your chips into the middle of the table to buy a house, you’re in trouble right from the start. You need to keep some chips, or in this case, savings, in reserve.

“Life comes to you quickly, whether it’s something that happens related to house maintenance costs, or suddenly your tire goes flat or you have a large dental bill,” says Hamrick. Hamrick said. Having a strong savings mattress is important.

You might be tempted to put everything you have into a lower down payment or closing cost, but Hamrick says that’s a mistake. “The need to save almost becomes more important after a person owns a home because there is more risk to expenditures,” says Hamrick.

Make sure you are thorough

It’s important to think through what you’re looking for and how you’re going to achieve it as thoroughly as possible, says Lautz. Look at any potential home with your eyes on what the property has to offer and what it means to live there for years, or even decades, she adds.

It is important to complete all the appropriate checks. Even if you pay a little more up front, that could mean you’ll avoid any nasty surprises later on. “The home inspectors are there to help you and understand all the systems in that home,” says Lautz.

Do your homework

When buying a home, be patient, says Lautz. Once you decide to buy, you can start diving into the process and start looking at locations. But taking the time to research the market and the types of homes you’re interested in can be a big plus.

First, look at photos online and think carefully about the homes you’ll see with your own eyes, says Lautz. That way, you and your real estate agent are actually dealing with and viewing homes in a very strategic way and bidding on the homes that really matter.

And at the end of the day, it’s all about finding a home that’s right for you so you won’t regret it.

“I’m really glad we decided to buy a home. We really felt at home and it felt like the right home for us,” said Holmes-Roberts.

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