Buyer’s remorse is an awful thing, especially when it comes to something on which you’ve spent a lot of money. Perhaps the worst form of buyer’s remorse takes place when a homeowner regrets their choice of a house… and yet, it’s a very real phenomenon, and common enough that nearly half of all American buyers feel it, says CNBC.
A study done by real estate aggregator Trulia says that 44 percent of homeowners have some regrets about the house that they bought. Not buying a bigger home accounted for most of the dissatisfaction, said the study, which was conducted on 2,000 adults in late June. Homebuyer’s remorse is an expensive problem, given that the median U.S. home price was $252,800 in May. As per the National Association of Realtors, that’s up 5.8 percent from last year.
Home size accounted for a full third of the complaints homeowners had, a phenomenon that experts say is to be expected when home prices are soaring and consumers have to perhaps settle for a smaller house than they would like. David Weidner, managing editor for Trulia's housing economics research team, says that this is a regret that settles in quickly, perhaps even before the house sale closes. Even 16 percent of buyers making $100,000 or more per year wish that they could go for a larger home.
A fifth of the respondents to the Trulia survey told experts that housing mistakes they made in the past were keeping them from moving forward and changing their housing situation. Renters, for example, might have to move to a smaller residence or take on roommates to be able to save for the down payment on a house if homeownership is their real dream. If you recently bought your home and are unhappy, you should still live there for a few years before taking the plunge and entering the market again, says Greg McBride, chief financial analyst for personal finance website Bankrate.com.
"If you haven't been there for a long period of time, the transaction costs can more than eat up the equity you may have accumulated or the modest down payment you put down," he said.
Experts say that the keys to avoiding buyer’s remorse on your home are to do your research and save up enough before going into a purchase. Figure out how much you can afford and set yourself boundaries, making sure to save up enough not just for closing costs, but for the purchases that inevitably come afterwards as well.
