Owning a new home is a milestone most people want to achieve.
When shopping around for a home, prospective buyers may feel exhilarated and frenzied, leading them to make rushed decisions. And when the process is all over, buyer’s remorse sets in.
Buying a home is a complex process, so it’s easy to be overwhelmed and overlook many of the factors that could later taint the joy of being a homeowner afterward.
According to a survey by Zillow, 75% of recent homebuyers have at least one regret about their new home.
Setting clear priorities before embarking on your home buying process is one way to numb the adrenalin rush that comes with the home buying process. It helps you focus on what you need in a house and to feel more secure about your decision later on, avoiding some common home buyer regrets.
In this article, we look at some things home buyers wished they knew before they closed the deal.
8 Common Home Buyer Regrets to Get in Front of
1. Not seeing the bigger picture.
Buying a home is a decision that will affect your life long term and in multiple ways.
So, there are many factors and potential curveballs to consider. Sometimes, homebuyers fail to picture the future when they are shopping for homes. You have to think about what you’ll need 5, 10, or 20 years from now, and make sure you find a home that fits the lifestyle you foresee.
Simple things like:
- location
- accessibility to parks
- shopping malls and schools
- crime rate
…usually top the checklist of home buyers.
However, other less obvious details like:
- the possibility of relocating
- when you start having kids or when the kids move out
- future development plans of the area
…could also have an impact on how we feel about the house later on.
When you’re purchasing a property, you’re buying a lifestyle. But also, understand that life is dynamic, and each stage in life comes with its unique challenges which require adjustments. For example, would you still be staying in the same home when your kids reach their teen years?
2. Not getting a home inspection.
Home buyers are constantly looking for ways to save money when negotiating home prices.
However, it turns out that a cent saved today could cost you a dollar tomorrow. A home inspection lets you know what kind of shape the home is in, and how much money you’re likely to spend if you move in.
As such, you should refuse to waive it if the agency offers it as one of the contingencies.
Though inspections are not a one-size-fits-all solution to repair problems you may be facing in the house, it is best to work with a seller that prioritizes issues like repairs.
To avoid any home buyer regrets, try to ensure that you have a clear understanding of every repair issue. If the report is confusing, hire an electrician, plumber, or roofer to get clarity on the issue before signing on the dotted line.
3. Not researching mortgage options and rates.
Skimming over the financial details of the home buying process could hurt your pocket down the road.
This should be one area you should pay attention to because of its long-term effect on your finances. Most people tend to skip comparing rates because it’s a time-consuming process.
No matter how enticing the deal may seem, research other options to get the best mortgage.
Even something as simple as a 1% difference in mortgage interest can affect you long term.
For example: Say you are looking to buy a $400,000 home, with a 20% down payment on a 30-year fixed mortgage term for the current average interest rate of 6.9%.
Over the 30 years of your term, you will pay:
- $2,066.59 per month in mortgage payments
- $423,971.65 in interest (Yes, more than the original cost of your home)
But, if you shop around and find another lender who offers a 30-year-fixed mortgage term at 6.06% (Bankrate’s current top offers.) it will look like this:
- $1,930.92 per month in mortgage payments
- $375,132.32 in interest (Yes, a whopping $48,839.33 difference over 30 years. Hello, compound interest)
And, just for fun, if you cut your mortgage term from 30-years to 25-years, it will look like this:
- $2,073.52 per month in mortgage payments
- $302,055.10 in interest (What else could you do with that $121,916.55 difference?)
So, in this scenario, by finding a less than 1% lower interest rate and paying an extra $7 a month in mortgage payments, you will spend over $120,000 less paying off your house.
Chances are you can get a better deal. You should contact at least three different lenders before you make a decision.
Ask what all of your options are and make sure you understand them before making a down payment. You also don’t need to get your mortgage from the same bank that issued your pre-approval.
4. Focusing on aesthetics.
Everyone loves a home that is complemented with a beautiful scenic view or artsy interior decoration.
But this could be a distraction when it comes to the nitty-gritty of your home like how big your kitchen is, or its distance from shopping malls. Another of the major home buyer regrets is being swayed by beautiful details vs. the overall picture.
Here is where you need to assess your priorities.
- Is having a gorgeous view where you can sit outside every day and enjoy it with your family or dog or a good book important to you?
- Or is having a certain number of bedrooms, a decent garage and a recently updated main bathroom at the top of your list?
There is no right answer here. Selling a home has a lot to do with marketing, so don’t be swayed so much by one aesthetic feature that you overlook structural issues, or fundamental wants that you’re going to need more than a hand painted stained glass skylight. (Although that sounds pretty awesome.)
5. Renovation costs.
There will come a time when you may wish to renovate your home.
But it could come at a steep financial price. When purchasing a home, consider the potential costs of renovations if you decide to upgrade.
Though it is difficult to estimate this at first because, well, you are moving into a new home, it is always best to factor this in your calculations.
You can talk to a general contractor or an architect to get an estimation as part of your due diligence.
Another excellent practice is to ask questions about all the appliances and structural areas and when they were last updated. A good listing will usually indicate upgrades as a selling point, so if you don’t see “Furnace replaced 2022”, you should ask how old it is.
Your inspector goes over some of this, sure, but this is important to double down and make sure you have all the info you need.
For example: Depending on what material they’re made of, and your climate, shingled rooves can last for 15-30 years, but that relies on things like the quality of the material and installation, as well as if you live somewhere that your roof is going to take a beating with sun, hail, wind or ice.
When you roll up to your potential dream home, look up at the roof. Does it look like the shingles are peeling away? The average cost to install a 1,500-square-foot asphalt shingle roof is $6,695, according to This Old House.
You need to factor these things in when you’re considering buying a home. If you have to replace the water heater, roof, fridge and windows within a few years, that’s going to add up fast – and the sellers will know that. Use this knowledge as part of your negotiation.
Personal note: When I sold my last house in 2021, I knew my 28 windows were in desperate need of being replaced – but estimates showed it would cost me upwards of $30,000.
My realtor recommended I just factor this cost into the selling price, as the buyers would obviously see they were in bad shape, and they would want to choose a design and style they’d like, which I couldn’t guess.
I sold my house to the first buyer who came in (Yes, it was a hot market), who met my selling price. I drove by a few months later and their new windows look fabulous.
6. Maintenance costs.
Maintenance costs are like shadows, you can’t shake them off no matter how hard you run.
Even if homebuyers don’t plan to purchase a home that needs major renovations, they may fail to understand the cost of upkeep.
HOA fees, taxes, and insurance costs are only one part of the puzzle. Other things like lawn care or snow removal also add up to your home expenses.
There are also unexpected costs such as leaks, new plumbing, or installing a new boiler. As such, it’s best you make provision for maintenance costs when trying to buy a home.
7. Impulsive buying.
If you thought FOMO only happens with stocks, then you are wrong.
Sometimes the “Fear of missing out” makes a buyer purchase a house on impulse, only to regret it later. Even with due diligence and research, it is still possible to fall victim to your impulses.
This could lead you to spend more than you budgeted, not to mention that you could overlook factors such as maintenance, taxes, repairs, etc.
Since a home is a long-term investment, you should take control of your emotions when making a decision. To make sure your emotions are not running ahead of you in your home-buying journey, always seek the opinion of another person.
This helps you to put things in perspective and consider other angles that may not be obvious to you. After all two (good) heads are better than one.
8. Financial condition.
It’s common for buyers to buy at the top end of their range of affordability.
They may do this with the expectation that their financial situation will grow to match or overcome the high cost of the property. However, if you’re not careful you could end up being house poor.
Another one of the home buyer regrets is getting a mortgage at the top of your range – and not having money for anything else.
It’s better to buy a home that’s a little bit beneath your maximum financial capability.
That will leave extra room in your budget to take care of all the other things in your life that aren’t related to your home. It also acts as a buffer in case you can’t maintain your present lifestyle in the future.
Mortgage Pre-Approval Smart Tips – Why You Should Not Spend the Max Amount
Bonus Point 9. Bad neighbors.
This is one of those home buyer regrets that is definitely overlooked.
So what if you buy your dream home – if every weekend, your next door neighbors blast death metal or country (Depending on your taste) starting at 8am as they let their 8 children and 4 dogs bark, yell, scream, throw things and generally terrorize the entire neighborhood?
Make sure to look around the property. Some of the general tips I follow when I’m looking at buying a property:
- Are there a ton of cars parked on the street? That can get annoying, plus it can point to increased density in the neighborhood, which may mean it’s busy and loud.
- What time of day did you view the property? I like to drive by at different times of the day and week. Do I look like a stalker? Maybe. But I want to know what it’s like on the weekend when everyone is home. Are there loud parties every Friday night? I want to gauge if there are loud pets, kids or cars nearby.
- Do you share a wall with a neighbor, like in a townhouse or duplex? Follow the same logic as the last point. I was thisclose to buying a townhouse, but I realized the master bedrooms shared a wall, based on the layout of the house. That (Among other things) was a major dealbreaker for me.
- Is the neighborhood generally cared for? When I bought my house in 2015, one of the green flags was how many people in the neighborhood were doing renos. It indicated to me that they were taking care of their properties and likely to be living there for some time as they were investing in them. Plus, I didn’t want to live next door to someone who had 5 cars on their front lawn. (Noise and oil stains, mostly.)
- Are the neighbors nosy? When you’re looking at the property, did the guy next door hang over the fence and ask a million questions? That can indicate a level of friendliness and awareness that could be welcome. Or it could predict some awkward conversations or the necessity to build a taller fence. When I pulled into the driveway of my current home, the nice old lady down the street walked over to ask who I was. Now, she was probably just looking out for the sellers to make sure I wasn’t some random vandal. But as I suspected, a few weeks later when I moved in, I had to have a very clear conversation about her not walking into my backyard and coming in for unannounced visits.
Having crummy or obnoxious neighbors is definitely one of the home buyer regrets you can avoid!
Common Home Buyer Regrets: Avoid Them
Buying a home is an emotional and complicated process, making it easy for a lot of prospective buyers to lose track of things they should consider.
Though the points outlined above are not exhaustive, these common home buyer regrets can serve as a good starting point when you intend to buy a home.
The key thing is having the understanding that buying a home is not just a financial decision, but it’s also one that could have a serious impact on your life. Your present needs may be important, but perhaps your future needs may be more important when buying a home.
As such, you have to make sure to cross the T’s and dot the I’s before you commit. If you are unsure, you can consult with family, friends, or real estate experts for advice.
You can read this article if you need more information on things you should know before buying a house.
Editor’s note: This article was originally published Mar 16, 2024 and has been updated to improve reader experience.
