Home / Business / 64% of millennials regret buying their current home.

64% of millennials regret buying their current home.



Nearly two-thirds, or 64% of millennials (ages 25 to 40), say they regret at least one current home purchase, according to a new survey of homeowners in the United States. 1,400 from Bankrate

The survey found that only 45% of Gen X (ages 41 to 56) and 33% of baby boomers (ages 57 to 75) reported having remorse about their current home. But overall, being dissatisfied is commonplace: About 43% of all homeowners regret their home at least once.

Mark Hamrick, Senior Economic Analyst at Bankrate, said: “These purchases are even for qualified people. People take the ability to buy a home so much, many times there is a feeling that everything will fix itself once the first purchase is complete.

“The truth is, it̵

7;s just the beginning of the homeownership experience,” Hamrick said. After the first excitement ran out, many homeowners had a grudge or two that they hoped they would do something different. go

Many homeowners, especially younger buyers, have to compromise with the homes they’ve purchased, said Jessica Lautz, vice president of demographics and behavioral insights at the National Association of Realtors. With the price, condition and size of the house according to NAR research.

“You won’t get all of your wish lists, so generally you have to compromise, at least because money is the biggest factor in your life’s financial transactions,” she said. Feel sorry

But just because homeowners may have a little confidence, doesn’t mean they want to not buy their home. “In the balance, most people are happy they made the decision to buy,” Hamrick said.

Most common regret: cost underestimation is too low.

Among all homeowners, including millennials, the most common regret is underestimating maintenance and other hidden costs associated with buying and owning a home. About 16% of homeowners (and 21% of millennials) cite regret. Other types of regrets focus on the size of the home and the finance that is involved in the process, including mortgage payments and rates.

Beth Holmes-Robert, 38, and her husband bought their first home in January 2019.The 60-year-old home in San Antonio, Texas consists of four bedrooms and two bathrooms and has The price was $ 195,000. “We literally walked into the house the first day we went and said,” We need this, “Holmes-Roberts said.

Although Holmes-Roberts says home ownership is a blessing, especially in the midst of the COVID-19 outbreak, she hopes to do a little more research into the home-buying process ahead of time. Especially in the mortgage process. “It felt like the epilepsy of activities that ended us standing in front of this empty house with a set of keys.” Well, we’ve arrived, “she said.

Home maintenance is an ongoing challenge, said Holmes-Roberts. Over the past two years, they have been working on a number of plumbing systems, including repairing improperly drained bathrooms and bathtubs. They have to replace the entire garage door as well. The total family stimulus pay over $ 6,500 over the past year has led to home maintenance.

“Most of the money we’ve spent on our homes since we moved in is either standard maintenance or preventive maintenance, so we haven’t started the improvements we want to make,” Holmes – Roberts said.

Last year, homeowners spent an average of $ 13,138 on household projects, according to HomeAdvisor’s new State of Home Spending 2020 report, although these costs may vary depending on where you live and your age and condition. Of your home But homeowners should plan to spend 1% to 3% of the home purchase price on annual maintenance.

That means if your home is priced at $ 300,000, you should set aside at least $ 3,000 per year for repairs and maintenance.

What to do to make the homeowner sad

If you’re looking to buy a home in the near future, Hamrick and Lautz said there are some steps you can take to help alleviate buyer’s remorse.

Build your savings

The most important thing is to have a fairly large cushion. Think of it like a poker game, Hamrick says. If you push all of your chips into the center of the table to buy a house, you’ll have a problem right from the start. You have to hold some chips, or in this case a spare savings.

“Life is coming to you very quickly, whether it is what happens in the home care costs or the moment your tires are flat or have a lot of dental bills,” says Hamrick. That being strong is important

You might be tempted to put everything you have into your down payment or closing costs, but Hamrick says that’s a mistake. “The need for savings is almost more important after a person owns a home because there is a greater risk of costs,” Hamrick said.

Make sure you are thorough.

It’s important to think about what you are looking for and how you can achieve it as thoroughly as you can, Lautz says.Look at potential homes with your eyes open on what real estate offers and how they are. Means of living there for years or even decades, she added.

It is important to complete all appropriate inspections. Although you will have to pay a little more upfront. But it can mean that you will avoid the nasty surprises later. “The home inspector is there to help you and understand all the systems in that home,” Lautz said.

Do your homework

When it comes to home buying, be patient, Lautz says. When you decide to buy, you may need to rush into the process and start looking at places. But taking the time to find out about the market and the type of home you’re interested in can be a big plus.

Look at the photos online first and consider the homes you will see for yourself, Lautz says.That way, you and your real estate agent are managing and seeing the home in a very strategic fashion and bid on what really matters.

And at the end of the day, it’s all about finding the right home for you so you don’t have to regret it.

“I’m really glad we decided to buy the house we had in mind. We really felt right here and it was the right home for us,” said Holmes-Roberts.

Apply now: Get smarter about your money and career with our weekly newsletter.

Don’t miss out: Meet the middle-aged millennials: homeowners in debt and 40


Source link