2 days ago
45% of American homeowners have regrets about buying their current home—here's their No. 1 complaint
It's harder than ever to buy a home, and even those who manage to do it often have regrets about their purchase.
Some 45% of homeowners have regrets about their current home, according to a recent survey from Bankrate. Their most common complaint: frustration over the price of maintenance costs and hidden fees.
A typical American homeowner spends over $18,000 on non-mortgage home expenses every year, according to Bankrate's June 2024 Hidden Cost of Homeownership Survey. In some states, such as Hawaii and California, the fees stack up even higher, reaching around $29,000 every year, per Bankrate's estimate.
These charges, such as internet bills, property taxes and maintenance, often aren't front of mind when purchasing a property. But for those who buy a home at the high end of their budget, they can pose a major uphill battle.
That's why it's important to factor ongoing homeownership costs into your budget, as well as any offer you make on a property, lest you "get out over your skis," says Mark Hamrick, senior economic analyst at Bankrate.
Without a significant financial buffer, he says, you could end up with surprise costs that force you to forego necessary home upgrades or repairs, or even cause you to fall into debt.
Here's how experts say to deal with these sneaky costs.
One way to avoid surprise maintenance costs is to get a thorough accounting of the home's potential defects, according to Zillow, a residential real estate platform.
At the very least, completing a home inspection will help you enter homeownership with a more complete understanding of what work your home may need, Zillow says. Your inspector may find small, non-deal breaker repairs like plumbing drips or loose handrails, but it's also possible that they uncover bigger issues like foundation cracks. In that case, you'll likely need a second inspection from a specialist.
The upside of paying extra for inspections is that you may be able to negotiate repairs into your sale price or have them corrected by your seller, which could save you money up front and down the line, according to Zillow.
But, even if you handle repairs early, upkeep will inevitably be required. While it may feel easier to delay updates until things reach their breaking point, Zillow says it's more cost effective to opt for regular, ongoing maintenance instead.
To do this, try adding a few regular home maintenance tasks to your seasonal to-do lists, Zillow says. For example, by making an effort to budget out the time — or cash — for a major gutter cleaning in the fall, you may be able to save yourself from an expensive roof repair project by clearing out leaves before they cause a clog.
Bankrate's Hamrick says all prospective buyers should consider their full range of financial needs and goals before rushing into homeownership. In the meantime, "there's no shame in renting," he says.
"We live in a highly competitive society and economy, and I think all too often people are being overly severe with their judgements about themselves," Hamrick says. "They should give themselves some grace and time if the time currently isn't optimal for buying a home."
Move at your own pace in the buying process, and make sure you're confident that it's the best next step for you, he says. After all, deciding you're ready to buy a home isn't just about having enough cash savings to handle up front and ongoing costs, but also about ensuring you're prepared to tackle the full range of responsibilities that come with owning a property.
To get a fuller picture of what you can afford, it may make sense to consult a financial professional who can help you assess your home-buying budget.
