Despite showing signs of slowing down, the real estate market is still red-hot. According to Redfin, the median home price hit a record high ($386,888), up by about 25% since June. But while this may seem like great news to sellers looking to make money, many don't intend to buy another house. Indeed, many sellers and homeowners have regrets about the house they chose. In a recent study by Bankrate, about 64% of Americans aged between 25 and 40 had regrets about buying their next home.
Real estate experts warn that unless new buyers learn from their mistakes, they risk following in their footsteps. We don't want you to be among them. So, in this post, we look at why many homeowners regret it, and what you can do to avoid the same missteps.
Never Underestimate Maintenance Costs
Many sellers (20%) cited maintenance costs as their top financial regret. They admitted upkeep costs were more than they had budgeted for. So, when looking for a home, it pays to keep an eye on maintenance and other costs. This will help you come up with a more realistic budget.
One way to get a true picture of things is to work with a home inspector. These professionals can help you save money by identifying problems that can easily blow your maintenance budget.
Size Matters When Buying Your Next Home
Some homeowners regret buying a small house, while others are looking to downsize. When hunting for your next home, it's important to look at space. For instance, keep in mind that careful thought went into the staging. Well-staged homes appear clutter-free and attractive. However, they may not be realistic and can make a house look more spacious.
But if you're looking for a bigger house, on the other hand, it's wise to examine your energy bills. Will a few eco-friendly appliances or improvements help save a few bucks? Can you use the house to make money by renting out extra space?
Location, Location, Location
In a highly competitive housing market during a pandemic, it's easy to rush into a deal. The desperation to own a home can lead buyers to settle for a property without carefully looking at its location.
Don't join the list of owners regretting not considering location when buying their home. Be prepared to ask your agent important details such as what a morning commute looks like, noise levels, schools, proximity to shopping malls, and more.
Not a Good Idea
7% of homeowners thought buying a house was a good idea only to find out it wasn't. Although owning a house offers financial benefits like appreciation in value, building equity, and tax write-offs, don't be hasty. Take a moment to weigh the pros and cons of buying a home right now.
There are many reasons why you should wait. Perhaps you travel frequently or are planning to change your career. If you need help, talk with a certified financial planner to help you make an informed decision.
Work With an Experienced Real Estate Agent
As you can see, buying a home is a huge financial undertaking. A slight mistake can cost you thousands of dollars in the long run. One way to reduce that risk significantly is by working with an experienced real estate agent. Zillow reports that over 80% of buyers work with these professionals.
Industry experts also say that agents can help buyers in a hot market:
- Save money
- Access listings faster
- Spot red flags
- Get paperwork and process help
Key Takeaways When Buying Your Next Home
Buying a next home can be the biggest purchase of your life. And you don't want to make mistakes. With so many people to learn from, one thing is clear — don't move so fast that you ignore red flags that could trigger buyer's remorse. We hope these tips help you get your dream home. Good luck!