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You’ve probably seen the statistics. Polls saying a majority of recent purchasers are suffering from home buyer’s remorse. The surveys often reveal a large number of new homeowners with regrets — nearly 80% or more.
There’s no doubt that once the boxes are unpacked and you’ve settled in, you’ll notice the pitfalls that weren’t obvious when you walked through the house a handful of times before signing the loan. We’ve all been there. The furnace that failed. Peeling paint. Annoying, noisy neighbors. Too long of a commute. Too short on cash to cover all of the unexpected repairs.
Let’s flip the script. Here’s what to do if you have buyer’s remorse — or better yet, avoid it altogether.
Dig deeper: First-time home buyer in 2024 — What you need to know
In this article:
What is home buyer’s remorse?
Home buyer’s remorse is simply one or more regrets that pile up after purchasing a home. They can be little annoyances that begin to wear you down or a massive single issue that can’t be ignored.
How to avoid home buyer’s regret
The best scenario is to lower the odds of a big disappointment after you close on the mortgage. It’s not unusual to have a “what the heck have we done?” moment a short while after moving into your new home. It can be a knot in your gut from money being tighter than you expected or that you overpaid for the place.
Here are some ways to avoid home buyer’s remorse:
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Take. Your. Time. Before you decide, “This is the house,” wait. Wait some more. Don’t let some false sense of urgency put your decision on a short fuse. Communicate any concerns you have about the home-buying process with your real estate agent.
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See the house. Again and again. During the day. At night. Weekdays and weekends. Drive through the neighborhood a bunch of times. “Oh, we didn’t see that before.” Make house hunting your passion.
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Don’t skip the home inspection. We’re not talking about getting a buddy to check it out for you. Get a serious top-to-bottom review of the structure from a licensed home inspector. You should receive a detailed document with an unbiased opinion of the property and the current condition of its major components and systems.
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Only buy when you are well-set financially. Much of home buyer remorse for first-time home buyers centers around money issues triggered by homeownership. The annual costs of upkeep on a home are increasing as the stock of homes in the U.S. ages. Research by Zillow and Thumbtack estimates that utilities, homeowners insurance, property taxes, and “essential home maintenance” can add up to over $14,000 in expenses annually. That doesn’t include upgrades or improvements.
Read more: How much house can I afford? Use the free Yahoo Finance home affordability calculator.
What to do if you’re experiencing home buyer’s remorse
Can you fix what’s causing your home buyer’s remorse? Maybe. Consider these remedies:
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If your payment is too expensive: Maybe you broke your budget and spent too much on the home. Or, you had to settle for a higher interest rate than you expected. Talk to your lender or servicer — or even one or two competing lenders — about your options. Perhaps there is another loan option you can consider. Maybe your credit score has improved, which could give you a lower mortgage rate and better loan terms. A mortgage refinance may not be immediately available, but down the road, you’ll know there could be relief in sight with a lower mortgage payment.
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If you bought the wrong house: Competitive market pressures may have triggered you to move too fast and buy a home you now know is all wrong. A relocation, perhaps to a less active real estate market, could be a solution. Again, it may not be immediate relief to your feeling of regret, but planning your move and all that entails — selling your existing home and buying a new house — will take some time.
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If you’re drowning in homeownership expenses: See where the money is going. Track your expenses for a month or so, then sort the purchases into needs and wants. Needs are necessary expenses, like your mortgage payment, food, utilities, and insurance. Wants are everything else, such as dining out, streaming subscriptions, vacations — things like that. Cut back on the nonessential spending as much as possible until you feel the money pressure ease.
Learn more: How soon can you refinance a mortgage after buying a home?
The biggest regrets of home buyers
You are certainly not alone. Ranked by the general frequency of issues causing home buyer’s remorse, here are the most common:
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Spent too much
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Paying a high interest rate
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Made a decision too quickly and overlooked critical issues with the house
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Too much maintenance or high maintenance costs — perhaps you bought a fixer-upper and didn’t realize it
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In a bad location
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Don’t like neighbors
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Outgrowing a home too quickly
Read more: How much money do I need to buy a house?
Home buyer’s remorse FAQs
Can you have buyer’s remorse after buying a house?
Absolutely. In fact, it probably happens for a lot of people after any major purchase. But a home? Buying something that costs that much and is such a big commitment is bound to give anyone a little heartburn. Psychologists call it cognitive dissonance. It’s the mental conflict we may experience over big decisions. See? You’re not alone.
How long does it take for buyer’s remorse to go away?
You may settle in your home after a few months, get comfortable, and find out that everything’s OK after all. You get familiar with the neighborhood, maybe make a few friends, and end up happy to have your own place right where it is. Little things that bugged you initially get resolved, or you might even forget about them.
What to do if you don’t like the house you just bought?
You will likely be unable to immediately sell your house without taking a huge financial hit. Think of the money you put down and the costs of closing. Those expenses probably put your breakeven point way over the house’s current market value. And selling it will cost money too. However, you have some options over time. For example, you could make some improvements to the house. Fresh paint, cool lighting, and colorful landscaping could make it feel more like home.
Can I change my mind after buying a house?
You can change your mind after signing a purchase agreement but will likely lose any earnest money you deposited into an escrow account. You can even walk away at the closing table — before you sign the paperwork. But after closing, after you sign all those documents, the house is yours. For better or worse.
This article was edited by Laura Grace Tarpley