According to survey results recently published by Bankrate, 63%of the millennial homeowners they surveyed feel some degree of buyer’s remorse. Here are 4 reasons they gave, and what you can do to ensure that you don’t experience the same regrets.
First-time homebuyers often transition from rental properties where property managers handle upkeep and repairs. Being your own property manager takes time and effort; the upside is that every effort protects your investment. Plus, you control the timing, scope and quality of the work that gets done.
There are things you can do to manage the impact on your free time. Before you buy, consider these points:
Some respondents reported feeling that they had not gotten the best mortgage and cited other unexpected expenses as pain points. All of this underscores the importance of doing your research.
Mortgage and closing costs
There are many types of lenders and loans, and multiple variables that will affect your expenses. Work with a reputable lender that can offer you a variety of options and will explain to you exactly how the process works. Interview them and ask questions. If they rush you through the first phone call, walk away; you want a supportive partner in the financing process.
Closing costs can vary widely; the guideline is 3-6% of the purchase price, but there are several contributing factors. To avoid surprises, pay attention to the detailed disclosure documents provided by your lender; be sure you fully understand the numbers and how they may flex.
Every property requires upkeep inside and out; from changing the paint color in your kitchen to putting on a new roof, everything costs money. Experts recommend setting aside 1% of a home’s purchase price each year for ongoing maintenance. You may not spend it out every year, but what you have leftover will help fund projects a year or two later.
New homeowners may underestimate recurring monthly costs—things like utilities, landscaping, association fees and taxes. To make sure that you have a clear picture of your routine monthly costs:
Your agent can suggest information resources that will help evaluate your options before you commit. The Gloria Nilson & Co Quarterly Market Report is just one of the many resources at your disposal.
Unhappy millennial homeowners sometimes feel their homes either too large or too small. A larger-than-needed home may come with higher taxes, utility bills and expenses. A home that is too small leaves no room to grow. Each buyer must balance between budget and need – and not just today’s balance, but the budget and needs you might have down the road.
Location is key
Everyone has heard that the three most important things about buying property are “location, location, location!” While that adage focuses mostly on market value, there is much more to it – and it’s all about you.
The most important aspect of location is safety. Apps and sites like Niche, Homes.com, and Neighborhood Scout can provide valuable crime and safety data. Spend time in the area – the local coffee shop, library, downtown – where you can speak to your prospective neighbors and gather local intel. Your GNRC agent is also very familiar with the various neighborhoods of their market, and can answer many of your questions to help you validate your research.
If you are too far from—or too close to—something that matters, this can impact your joy. Distance from things like family, school, transit options, downtown, parks and recreation can make you happy…or not. Only you know what the right criteria are. Before you begin your search, and as you view homes with your agent, weigh and prioritize what features will make you happiest and share that insight with your agent.
4 Steps to Avoiding Remorse
Without a crystal ball, it’s impossible to guarantee that that you won’t have any regrets when you buy a home, but there are 4 things you can do to improve your odds.
Odds are, the survey respondents could have avoided remorse with a little more knowledge and assessment. At Gloria Nilson & Co Real Estate, our agents have the experience, network and local market knowledge you need when buying your first home. Your agent can help you every step of the way so that you are overjoyed with your purchasing decisions.