64% Of Millennials Have New Homebuyer Regrets Survey Says

According to a new Bankrate survey, Millennials have the most regrets after buying a home. In general, the survey found that the older the buyer, the less likely they were to have misgivings about their purchase after the fact.

The survey found 64 percent of millennial homebuyers (ages 25-40) have some regrets about their purchase compared with just 33 percent of baby boomer buyers (ages 57-75).

Buyer’s regrets are even more of a factor during the pandemic, with sight-unseen offers and contingencies waived to win bids. That desperation to land a home leads some buyers to settle for properties that aren’t quite right for them.

The survey highlights some of the most common regrets new homeowners have and which demographic groups are most likely to have them. The biggest regret centering around how expensive the maintenance costs for their home are. With 21% of Millennials believing the cost of their new home were too high, compared with 17% of Gen-X, and 13% of Baby Boomers.

Angelica Olmsted, an agent with RE/MAX Professionals Cherry Creek in Denver, said she advises her clients to regularly go back to their pre-closing inspection report, which can help new homeowners anticipate what repairs are likely to come up. “Most people pay a lot of attention to it the week they get the report and then put it in a file and never think about it again.” She said she suggests looking at it quarterly and checking in on the issues it highlights. “If there was a crack in the stucco in the inspection report, you have a picture. Has it changed? If it has, have someone go look at it.”

The Financial woes continued to bother Millennials more across the board; 13% believing their mortgage payments were too high, 12% believing the same about the mortgage rate, 13% believing they overpaid for the home, and 9% not thinking it was a good investment.

Millennials again were the most likely to be dissatisfied with their new home’s physical characteristics. According to the survey, 15 percent of respondents from that generation said they disliked their new property’s location. 14% said the house was too big, and another 14% said their house was too small.

To help avoid this huge expense turning into a regret Bankrate offered some suggestions on how to avoid Buyers remorse:

• Work with an agent who understands the market.
• Be ready to make some concessions, but stick to your guns on must-haves.
• Focus on whether a home is somewhere you’d be comfortable living, even if it’s not your dream property.
• Make a budget and keep it.
• Don’t rush into a deal just because you’re frustrated.

You might want to also insist on passing a home inspection, by a person of your selection, before purchase, as often issues can be overlooked or cleverly navigated around by the seller.

Despite the frenzied market, homebuyer regrets remain fairly constant. The disappointment trends today are similar to what they looked like a few years ago.

Source: https://bit.ly/3bzASM3