According to a recent poll by Clever Real Estate, as the U.S. housing market cools, the fierce competition for homes over the last two years has left 72% of respondents regretting their home purchases.
The primary cause of buyer’s remorse: 30% of respondents admitted to overspending.
Rushing the home-buying process was the second most frequent regret, with 26% of buyers saying they bought too quickly and 30% saying their decision was rushed.
About 1,000 people who purchased a home in 2021 or 2022 participated in the online survey, which was conducted in July. Anytime Estimate, a company owned by Clever Real Estate, requested it.
Offers of concessions led to regrets
Recent years’ hot seller’s market encouraged purchasers to go above and beyond to close the transactions on their desired properties, which added to regrets.
31% of buyers claimed to have done so up until that time. A $65,000 premium was often paid over the asking price.
Notably, intense competition prompted 36% of buyers to submit an offer on a home without previously visiting it.
Despite this, there was considerable competition, with 80% of purchasers reporting making more than one offer and 41% making five or more. One in three purchasers claimed to have spent three months looking for a property, while one in eight said it took them six months or longer.
In the contemporary market, purchasers have more influence
According to Danetha Doe, economist at Clever Real Estate, when the real estate market shows indications of softening, it could give purchasers more power on these expensive selections.
According to dropping sales and building, the National Association of Realtors said last week that the housing market in the United States is in a recession. However, despite the tight supply, prices are still rising nationally.
Mortgage interest rates are also anticipated to increase as the Federal Reserve attempts to control historically high inflation.
However, Doe says there are a few steps prospective homeowners should take right away to give their purchases a more secure financial foundation.
3 steps to take to prevent regrets when purchasing a home
Make a house inspection a requirement
In the face of intense competition for homes, 43% of homebuyers gave in financially by skipping a home inspection, according to Clever’s survey.
But it would be good for purchasers to not skip those inspections before a purchase that can help supply important details on the state of the house.
Without a home inspection, you can subsequently encounter costly surprises like unforeseen home damage that can cause regret, according to Doe. According to a separate survey conducted by the insurance company Hippo, 77% of homeowners have had to pay for an unforeseen repair during the first year of home ownership. Over $1,000 was the cost of those modifications, according to two thirds of respondents.
Ask the vendor for discounts
A seller concession is a payment the seller consents to make to assist in completing the sale.
You might want to insist on it as well, she added. This may entail having the seller contribute to closing fees or pay for additional repairs that are required on the property.
“You can ask for that now that the market is shifting more to a buyers’ market,” Doe said.
Choose a real estate agent who will fight for you
You should exercise extreme caution while making your choice because the real estate agent you choose will have a significant impact on the outcome of your house purchase, according to Doe.
“Surround yourself with experts who actually care about your goals and your dreams and also are knowledgeable of the local area,” Doe said.
Given some of the recent changes the real estate industry has undergone, she claimed that professional should have been active in the market for two to three years.
They answer to your questions within 24 to 48 hours, which is another indication of a skilled professional.
If they don’t respond to inquiries, that may indicate that they will take their time with the paperwork, which could potentially result in the sale being canceled, said Doe.
“If they only see you as a way for them to make money, then they’re likely not going to go above and beyond to ensure that you do get the best deal as a homebuyer,” Doe said.