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Why recent homebuyers have regrets about their purchases

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A “For Sale” sign hangs in front of a house in Miami, Florida, on June 21, 2022. According to the National Association of Realtors, sales of existing homes fell 3.4%, giving him a seasonally adjusted annualized rate of 5.41 million units. Sales fell by 8.6% from May 2021. The median price of homes sold in May was $407,600, up 14.8% from May 2021, as sales of existing homes declined.

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As US housing market cools downa recent survey found that 72% regret buying a home due to fierce competition for housing over the past few years. smart real estate.

Top Reasons Buyers Regret: 30% of respondents said they spent too much money.

The second most common regret was rushing through the home-buying process, with 30% saying they rushed the buying decision and 26% saying they bought too soon.

The online survey was conducted in July and included approximately 1,000 individuals who purchased a home in 2021 or 2022.

The compromise of the proposal led to regret

In today’s hot market, prospective buyers go overboard trying to close a deal on a home they plan to buy, which contributes to regret.

By that point, 31% of buyers said they had paid more than the asking price. The median amount paid for the listing price was $65,000.

Notably, due to stiff competition, 36% purchased a home without seeing it first.

The competition is still fierce, 80% of buyers said they made multiple offers, and 41% said they made 5 or more offers. About three of the buyers said it took them three months to find one, and one in eight said it took them more than six months.

Buyers have more power in the current market

As Real estate market shows signs of coolingAccording to Danetha Doe, economist at Clever Real Estate, this could give buyers a better edge in making these expensive decisions.

Last week, the National Association of Realtors announced that the United States was in a housing recession in terms of declining sales and buildings. However, prices continue to rise nationwide as inventories are tight.

Mortgage rates are also expected to continue rising as the US Federal Reserve (Fed) grapples with record-high inflation.

Still, according to Doe, there are some moves prospective homebuyers can make now to put the deal on a stronger financial footing.

3 actions to avoid regret after buying a home

1. Insist on a home inspection

Clever’s research found that nearly half (43%) of homebuyers have made financial concessions, such as waiving home inspections, amid fierce competition for a home.

However, buyers are wise not to withhold these inspections prior to purchase which can help provide important information about the condition of the home.

Doe says that not doing a home inspection can lead to costly surprises later, such as unexpected home damage that can lead to regret.a separate investigation A recent survey by insurer Hippo found that most homeowners (77%) had to pay for unexpected repairs within the first year of owning their home. . Two-thirds of her respondents said these fixes would cost him $1,000 or more.

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2. Ask the seller for concessions

A Seller Concession is a contribution that the Seller agrees to make to close the sale.

And that’s also what you want to argue, she said. .

“You can ask for it now that the market has shifted to a buyer’s market,” Doe said.

3. Find a Real Estate Agent Near You

A lot of homebuying success depends on the real estate professional you hire, so you need to be extra careful in your selection, says Doe.

“Surround yourself with professionals who really care about your goals and dreams and are familiar with the area,” said Doe.

The expert must have been working in the market for two to three years, especially given some of the changes the real estate market has endured recently, she said.

Another sign of a good professional is responding to inquiries within 24 to 48 hours.

If they don’t respond to questions, it could be a sign that they could slow down the whole process when it comes to paperwork, or even cancel the deal.

“If they only see you as a way to make money, they’re not going to do much more to help you get the best deal as a homebuyer,” Doe said. rice field.

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