The house was gorgeous. It was located in a beautiful neighborhood with mature hardwood trees shading the streets & sidewalks; a definite advantage in the battle against the brutal Central Florida summers.
The backyard was fenced, the roof was new, and the fireplace was huge (to battle against the brutal Central Florida winters?). My wife loved it, my kids loved it, and my ego completely glossed over the fact that it was way more than we could really afford.
And then the contracts were signed and I started losing sleep over the precarious financial situation I had just placed my entire family into.
Luckily, I also soon experienced some “good career fortune”, and my anxiety (at least for this decision) retreated back into the corner. But it could have just as easily gone the other way.
A recent survey by Bankrate noted that while 56% of American home buyers were happy with their decision, 44% of all homeowners – including a whopping 63% of millenials – expressed some regrets over their purchase.
That’s the bad news. The good news is that almost all of the regrets they experienced can easily be avoided.
Number one on the list: maintenance & other costs were more expensive than expected. Here’s where those in my generation – and in my profession – could do a better job in setting the expectations of people buying their first home.
Yes, they know that they’re going to have to maintain the yard. Yes, they understand that if something needs to be fixed or replaced they’re the ones who will have to do it. And yes, there are taxes and HOA dues and termite bonds. Got it.
But understanding something in concept is a whole lot different from the understanding you get when you write the check. And it can be a LOT of checks. And some of them will have commas in the dollar figure. Just know that going in.
The next regret consumers noted is that they bought a house that was either too big or too small. The best way to avoid this one is to have a good understanding of what you really want out of a house and how much you want to spend for it before you ever start looking. Once you know what you want, stay focused on it; don’t allow yourself to get pulled down into rabbit holes chasing shiny things that lull you into making bad decisions.
Third regret: It’s in a bad location. We all know the real estate mantra: “Location, location, location!”. It hasn’t changed. It never will.
Realize that you can do almost anything you want to your home. You can paint it. Landscape it. Add on to it. Heck, you can bulldoze it down and build a completely different one. But you can never move the piece of land it’s sitting on. Make sure you really like where that piece of land is.
The next regret is that the buyers don’t think their home is a good investment. My advice here is simply not to buy a home as an investment. Buy it because that’s where you want to live your life. Yes, it is a store of value, and yes, it will probably appreciate over time, but unless you’re an actual investor it might serve you better to just be a resident.
Fifth on the list is that the mortgage payment is too high. You went down a rabbit hole. You chased something shiny. I am sincere when I say that I hope you are blessed with some “good career fortune”.
The last regret in the survey is that owners felt that they didn’t get the best mortgage rate. While interest rates in general are beyond our control, we can – and should – shop around for financing, because there can be significant differences between lenders on the rates & terms they offer.
And finally, although it didn’t make the list, make sure you also fully understand the type of loan you’re getting and how it will affect you, both now and in the future. It’s really important.
In the end, there’s nothing here that you don’t already know: Do your homework. Ask questions. Stay focused. Be patient.
No regrets.
Please let me know if you have any questions by calling 252-876-8267 or sending an email.
By Contribution Author, Blaine Staat, Weichert Realtors At Rivers Edge, 220 Front St., Suite A, New Bern