As the U.S. real estate market continues churning along and buyers remain hopeful their bids will beat out the competition, now is an ideal time to observe common regrets of homeowners.
A survey by Nerdwallet of more than 1,400 homeowners found that almost half of them wish they had followed a different process when buying their homes. If you’re looking to purchase a home, take note of these hang-ups to avoid a serious case of buyer’s remorse.
A lack of information about the home and its surroundings
With a limited supply of homes on the market, buyers are being forced to make decisions more quickly than usual.
It’s becoming common for potential buyers to forego a home inspection in an effort to make a winning bid. Consequently, some buyers are discovering the house they just purchased is in need of expensive repairs. A 2013 survey by Trulia concluded that 22 percent of homeowners regretted not having more information about the house they bought prior to signing on the dotted line.
This ruefulness extends to not getting a better grasp about the communities surrounding their homes. Plans for the community such as construction in schools, tax rate increases etc.
Failing to save more
A bigger down payment means a smaller monthly mortgage, but nine percent of Nerdwallet survey respondents felt a greater sense of financial security prior to buying their homes.
It’s critical to assess how a new and usually larger monthly mortgage payment will fit in with the rest of your financial obligations. If you’re planning to start a family, you’ll need to budget for all of the costs associated with becoming parents like extra groceries and daycare bills.
There are many free mortgage calculators and budgeting tools available online that will help you quantify your expenses.
Passing on bigger houses
This is the number one regret of homeowners, according to the Nerdwallet and Trulia studies. Potential buyers will become enamored with a particular location or neighborhood and make a winning bid on a house, only to discover they really needed an extra bedroom or half bath.
While location is often a top priority when moving, you may very well find another home with the extra space you crave by widening the scope of your search to include multiple areas.
Avoid the same pitfalls in your home search
Taking note of these common regrets will help guide you in your own search for the perfect home. With a little bit of research upfront, you can conduct your own background check on any neighborhood to find a place that truly meets your needs.