The Most Common Reasons for Homebuyer's Remorse (and How to Avoid Them)
Whether it’s your starter home or just the latest move up the property ladder, buying a house is a huge investment—financially and emotionally. Despite the stakes, house hunting can be a rushed, stressful experience pushed along by tight timetables, precarious financing, and unpredictable market forces. So it’s not actually surprising to learn that more than 80% of Americans experience some level of regret after buying a house.
But buyer’s remorse when house hunting isn’t a given. Most of those regrets are due to a few common mistakes people make when buying a new house, and they can be prevented—or at least minimized—by following some simple advice. Here are the most common reasons for house hunting buyer’s remorse and how to protect yourself against it.
High maintenance
Realizing that your new home is going to be a pit of endless—and expensive—maintenance is one of the most common reasons people experience house buyer’s remorse. A house that seemed ideal when you were walking through it on a sunny day can feel like a prison when you realize it’s difficult to keep clean and functional.
There are two easy ways to avoid this regret:
Inspections. Almost a quarter of home buyers waive the inspection contingency when they buy a house—but this is a bad idea, according to real estate attorney William London of Kimura London & White LLP. “Always conduct your inspections, and do not waive contingencies to have your offer be accepted,” he says. “Remorse is frequently emotional, not legal. After escrow closes, it is too costly or impossible to turn back.”
Asking questions. The easiest way to avoid this kind of regret is to ask a lot of detailed questions about how frequently aspects of the house need maintenance, what the costs are, and repair histories.
Another aspect of home maintenance comes with fees associated with homeowners association (HOA) fees, which are used to maintain common aspects of a property. Brandon Blakeley, co-founder at Mirador Living, notes that HOA fees are often kept artificially low due to deferred maintenance. “Florida recently passed a bill (SB 4-D), which exposed just how widespread this problem was,” he says. “Once buildings were forced to catch up on repairs, HOA fees skyrocketed and property values plummeted.” Always ask to see the fee and maintenance records for any property you’re considering that belongs to an HOA.
Unknown infrastructure
When touring a potential home, it’s easy to be distracted by the finishes, the fresh paint, and the smell of cookies in the oven. But nothing causes homebuying remorse faster than a series of expensive breakdowns right after you move in—the washing machine breaks down, the water heater leaks, and your HVAC stops blowing cool air, all within a few months.
To avoid that kind of regret, it’s important to not only check maintenance schedules, but to find out how old different aspects of the home are. Ask for installation dates and warranty information for a list of the home’s infrastructure, including appliances, HVAC systems, roof systems, windows, and sump pumps. Even if they don’t need to be replaced immediately, an estimate of how much time you have before you have to start splashing out will stave off regret.
Succumbing to bidding wars
Real estate agents and home sellers love a good bidding war—but they lead to a lot of regret when the dust settles and you realize you overpaid for the home. There are several psychological factors that goad you into a bidding war, but defending against this kind of regret requires just one thing: a plan.
“Start with a good understanding of your price constraints and adhere to them,” London says. “Even in the heat of a market.”
If you have a hard line in terms of how much you’re willing to pay for a house (and thus how big a monthly mortgage payment you’re willing to take on, you’ll be a lot less susceptible to being swept up in the hysteria of a bidding war.
Wrong-sizing
More house is not always better—and compromising on a smaller house than you really need (so you can squeeze into a specific area, or because the aesthetics of the house appeal to you) is an easy way to become mired in regret. One factor that complicates these decisions: time. If you plan to stay in the house for a long time, you need to consider where your life might be years from now.
“The key to the house is, what items can you not live without?” says Jeff Lichtenstein, CEO of Echo Fine Properties in Palm Beach Gardens, Fla. “If you have three kids, does only having three bedrooms mean you need to make a second move? In my own case, I bought a home with a two-car garage and a short driveway. Once both kids got cars, there was a lot of ‘musical cars’ that we were constantly moving around.”
Lifestyle mismatch
A house isn’t just a place to store your stuff and sleep. It’s an intrinsic part of your life. When it comes to specific features or the location that you want, it’s often a mistake to compromise. “I have heard of a story of a family that desperately wanted to live by the coast, but could not afford it, so they purchased a home inland and immediately regretted it,” says Heather Myers, co-owner of the Snyder Real Estate Group in San Diego.
Another easy way to regret a home purchase is to overlook the neighborhood. When you’ve narrowed your house hunt down to a specific property, take the time to thoroughly check out the area to ensure it’s got the vibe, amenities, and access you need in your everyday life. “We always advise our clients to take multiple trips over to their new neighborhood at different times of the day and on weekends and weekdays,” Myers says. “We tell them to get out of their car and walk around their new block multiple times.”
You also have to match your lifestyle to the house itself. If you work from home and need a quiet, specific office space to be happy, buying a house without that spare bedroom will be something you will probably come to regret. If you love throwing parties, buying a house that lacks an open floor plan and comfortable outdoor area like a patio or deck means you’ll probably wish you’d held out for a different house.
The best way to deal with buyer’s remorse when house hunting is to avoid it entirely. Myers is blunt about your options if you don’t: “If buyers regret their decision, they typically have two options: They can immediately sell or they can rent out their new home and go rent somewhere else.”