June 25, 2019
The Main Source of Millennial Homebuyer’s Remorse
Buyer’s remorse is real. In a recent post we discussed ways to decrease the likelihood of subjecting oneself to this unfortunate phenomenon. But it seem that there’s one set of homebuyers who need this advice the most: Millennials.
According to a survey by Bankrate released in February, this generational group, whose members were initially charged with taking too long to get into the market (which has since changed, though they are not representing to as strong a degree as the generations preceding them did at the same ages), suffer from homebuyer’s remorse at a somewhat alarming rate. Well over half of Millennial respondents—nearly sixty-three percent—expressed regret at having purchased the home they had bought.
While this outpaces any of the other existing generations significantly, it was nonetheless the case that forty-four percent of all homebuyers expressed similar regrets. Fifty-six of homebuyers, though, claimed to have no regrets at all.
Among the Millennial set, the main source of consternation—coming in at a quarter of those who responded—was the unexpected maintenance costs and other hidden costs of homeownership. To these mainly new homeowners, who have often become accustomed to renting, sudden expenses such as replacing water heaters, air conditioning, and roofing comes with significant sticker shock, as these are lump-sums of money that previously they would have paid out in diffuse fashion through paying rent that would have been only slightly higher (relatively) than paying a monthly mortgage on a home. This is especially likely to result in regret when such costs must be paid out relatively soon after new homeowners have put down a large down payment and paid closing costs on the home they’ve purchased.
Buyers new to the market can try to prepare for these sorts of maintenance costs by starting a savings account that builds interest, which they set aside specifically for housing improvement.
If you’re looking to buy a home and want to avoid regret based on not having clear title, the title insurance policies we connect you with here at Topouzis & Associates, P.C. provide peace of mind that your new property purchase will not bring along any nasty surprises. Whether you intend to buy in Cambridge, Massachusetts; Providence, Rhode Island; or Boca Raton, Florida, feel free to contact us for more information.