Borrower’s Remorse

In today’s highly competitive real estate market, it’s all too common for buyers to rush into a deal that doesn’t fit their budget or suit their needs. Millennials, in particular, have the most regrets after buying a home, according to a new Bankrate survey.

Buyer’s regrets are even more of a factor in the pandemic, with sight-unseen offers and contingencies waived to win the bid. 

Homebuyer regrets broadly fell into two major categories: financial and physical. In general, the survey found that the older the buyer, the less likely they were to have misgivings about their purchase after the fact. In all, 64 percent of millennial homebuyers (ages 25-40) have some regrets about their purchase compared with just 33 percent of baby boomer buyers (ages 57-75).

Key Findings

• Maintenance costs can be a big unexpected issue for new homebuyers
• Shopping for a mortgage remains important because some buyers think they paid too much in interest
• A home’s layout and location are key sources of angst for those who purchase a home
• Regrets about the costs of homeownership

By far the biggest regret among recent homebuyers was not being prepared for maintenance and other costs associated with homeownership. More than 20 percent of millennial homeowners said they felt the costs of homeownership were too high, and that number jumped to 26 percent among younger millennials, ages 25-31.

“It can cause a rude awakening if one fails to plan for inevitable expenses,” said Mark Hamrick, Bankrate’s senior economic analyst. “It isn’t a question whether such expenses arise, only when and how much they will cost.”