5 tips to avoid home buying remorse in 2022
A few months into the global health pandemic in 2020, the U.S. housing market began a wild ride that saw values rising sharply as sellers raked in more for their homes than ever before and buyers launched bidding wars, sometimes paying hundreds of thousands above the asking price. Unfortunately for buyers, little has changed in the two years since people began seeking more space outside city centers.
Inevitably, those who feel pressured to buy a home in this less-than-ideal market – with historically low inventory – could end up with some remorse about what is often the biggest purchase of their lifetime. A Zillow research study published in February 2022 found that 75% of recent buyers have at least one regret about their new home. Among the findings, 32% of those surveyed reported their home needed more work or maintenance than they expected, while 22% of buyers noted they don’t really like their home’s location or neighborhood.
Here are some tips to consider before locking in your next 20-year mortgage:
Don’t skip the home inspection
In the haste to land a beautiful home, some buyers have given up an inspection before purchase. Unfortunately, not all sellers are scrupulous when it comes to hidden damage, and not all damage is obvious. Which means unless someone crawls into the attic to check the roof for leaks, you may not realize how many hidden costs you will be on the hook if water damage or mold becomes an issue. While it might be tempting to waive the home inspection, it could mean a mountain of repairs you weren’t expecting to pay for.
Pay attention to the comps
If you use a real estate agent or broker, they should have a list of comparable homes in the area, also known as a comp, to let you know what other homes are selling for. Ideally, you don’t want to pay significantly more than the home is worth and above the comps, or more than a financial institution will loan you for the property.
Don’t forget about taxes, insurance & maintenance
When budgeting for how much a home will cost each month, or even annually, it’s vital to add property taxes and homeowners insurance to the mix. Depending on the age of your home, your mortgage payment could increase by hundreds or more each month.
