What happens when your dream home turns into a nightmare??
It doesn’t happen often, but it DOES happen, and the pandemic house-buying boom has created a substantial increase in buyer’s remorse.
Nearly ¾ of pandemic buyers have serious regrets about their new homes, and many are desperate to unload the properties they purchased just a couple of years ago. So, what’s up with the huge spike in unsatisfied homeowners?
Here are some likely culprits:
- They Rushed into Buying a Home
When the pandemic began and everyone was stuck at home, lots of people decided it was time for a new one. They had money in their pockets (because they weren’t going anywhere to spend it!) and mortgage rates were extremely low.
The problem was, they were in such a hurry to find a home (any home!) that they didn’t always choose properties that truly met their needs. Now they’re stuck in a house that doesn’t make them happy, and sky-high interest rates are making it harder to unload an unwanted home.
- They Overpaid
Mortgage rates were low, but property prices shot sky-high in no time. The pandemic buying boom was just the start of the crazy real estate market we’ve grown to know (and hate) over the past 2 years.
With so many buyers looking all at once, inventory plummeted while prices and competition rose daily. Buyers who outbid other contenders likely overpaid, and now they’re mortgaged on a home that’s no longer worth nearly what they paid for it.
- They Weren’t Ready for Home Ownership
Almost 70% of pandemic buyers were first timers, so they didn’t really know all the responsibilities (and headaches) of home ownership.
Some bought fixer-uppers with the intention of honing their DIY skills. Others bought houses with huge yards so they could have plenty of outdoor space for social distancing.
Now that life has mostly returned to normal, they’re discovering that they don’t have the skills, time, desire, or budget to maintain the home they thought they wanted.
So, how can you avoid buyer’s remorse when you’re in the market for a new home? Follow these 4 tips:
- Know what you want and where you’re willing to compromise. List your must-haves and your deal-breakers BEFORE you begin your home search.
- Remember that location and layout REALLY matter! You can’t change the location, and renovating the layout is time-consuming and VERY expensive. Don’t settle for a home that doesn’t really meet your needs.
- Hunt for the hidden costs. Utility bills, HOAs, renovations and repairs REALLY add up. Make sure you’ve accounted ALL the potential expenses before buying.
- Don’t take risks. Waiving an inspection to make your offer more attractive is a TERRIBLE idea that could cost you thousands of dollars down the road. Insist on an inspection now to avoid major problems later.
If you’re in the market for a new home, I’d love to help you find EXACTLY what you’re looking for! Reach out here.
