As mortgage costs continue to rise with home prices, some buyers are tackling another issue: regrets.
70% of modern homebuyers have at least one regret. Recent research According to HomeLight, an online real estate marketplace targeting 1,620 people nationwide earlier this year. One of the most regrets that about one in five people surveyed cited was that they underestimated the total cost of buying a home.
A February Zillow survey Similar results were found out of 2,000 new and potential homeowners. Seventy-five percent of modern homebuyers had at least one regret about their purchase. This includes 38% of buyers who want to spend more time searching for a home.
Other common regrets in both surveys were the location of the home, the premature purchase of the home, and the unexpected cost of repairs and maintenance.
These feelings make sense because the market wasn’t favorable to homebuyers. Homes are selling faster than ever, bid wars are common, and there are often multiple bids that exceed the asking price.And many buyers You may have felt that you bought in a hurry before interest rates rose furtherAs was widely expected.
Mortgage rates are about 20% higher than they were three months ago, and many new homebuyers’ monthly costs increase by hundreds of dollars. Zillow Survey It was released last week.
But this common regret suggests that potential buyers may want to reassess what they can really do, said Lawrence Yun, chief economist at the American Real Estate Agents Association. say.
He recommends that new buyers “understand their greatest financial limits” before buying a home, and reset expectations if the type of home they want is no longer affordable. In that case, homebuyers may want to look for a cheaper home or find other trade-offs, such as another neighborhood or less space.
New homeowners are often surprised by the additional costs of owning real estate other than mortgages and down payments. These costs include property taxes, insurance, condo fees, repair and closure costs.
Some of the upfront investment is also expensive. On average, buyers pay an average closing price of 3% to 6% of the purchase price. Every quick loan.. Also, the general rule of thumb regarding the cost of annual repairs is: 1% of the total value of the houseThis is about $ 5,000 a year for a $ 500,000 home.
To avoid unexpected costs, Yun says good realtors need to be able to provide clear ideas about what to expect so that they are “not surprised.”You can also check out Consumer Finance Protection Agency Guide About what you expect when you buy a house.
Do not miss it: Compared to last year, the cost of the same mortgage now is: