64% of millennials have regrets about buying home, poll says
“These purchases, even for those who are well qualified, can be a leap of faith,” said Bankrate’s senior economic analyst, Mark Hamrick
A slew of millennials have regrets about buying their homes.
According to a new poll made up of 1,400 U.S. homeowners from Bankrate, 64% of millennials regret at least one thing about purchasing their home, per CNBC.
“These purchases, even for those who are well qualified, can be a leap of faith,” said Bankrate’s senior economic analyst, Mark Hamrick. However, he adds that folks are so excited about buying a home they neglect essential details.
“The reality is that it’s just the beginning of the homeownership experience,” Hamrick said.
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According to the poll, roughly 69% of all home buyers have to compromise when selecting their purchase, which can later lead to regret.
“You’re never going to get all of your wish list, so you do generally have to make at least some compromises because money is a factor in the biggest financial transaction of your life,” said, Vice President of demographics and behavioral insights at the National Association of Realtors, Jessica Lautz.
Young buyers specifically end up compromising on the size of their home, location, and condition, which can cause regret down the line. Some new homeowners fail to put money aside for renovations and repairs and grow frustrated when they began to add up. Last year homeowners spent about $13,138 on household maintenance, per HomeAdvisor’s new 2020 State of Home Spending report. New homeowners should anticipate costs of repairs and maintenance work on their roofing, plumbing, appliances and even the periodic septic service. If you’re one of the homeowners who need water heater repair or septic tank services, make sure to contact an expert plumbing professional near you for immediate services.
But luckily, experts say homeowners regret is avoidable. For example, when it comes to those repairs, homeowners should expect to put aside 1% to 3% of the home’s purchase price.
This means if the home is $300,000, one can expect to spend about $3,000 annually on maintenance. Experts say having a cushion for yourself is a game-changer.
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“Life is going to come at you fast, whether it’s something that happens with respect to the costs of maintaining the home, or all of a sudden your car tire goes flat or there’s a big dental bill,” said Hamrick.
He said putting all of your savings into closing costs or a down payment is a mistake.
“The need to save almost becomes more important after one owns a home because there’s more risk with respect to the expenditures,” he adds.
Beth Holmes-Roberts, 38, said she is grateful to have been able to purchase her first home during the pandemic but admits she should have done more research.
We literally walked into the house the first day that we were looking and said, ‘We need this one,’” Holmes-Roberts told of her new $195,000 four bedrooms and two bathroom San Antonio purchase.
“It just sort of felt like a whirlwind of activity that ended up with us standing in front of this empty house with a set of keys going, ‘OK, here we are,’” she adds.
Holmes-Roberts goes on to say she was shocked at some of those unexpected costs, but all in all, she is satisfied with the purchase.
“I’m really glad that we went with our gut on which house to buy. We’ve really felt at home here, and it feels like it’s the right house for us,” said Holmes-Roberts.
The feeling of home buyer regret is not unique to millennials. According to the study, 33% of baby boomers (ages 57 to 75) and 5% of Gen X (ages 41 to 56) share similar sentiments.
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