HOMEBUYER’S REMORSE: HIDDEN REALITIES SHAKE THE DREAM OF HOMEOWNERSHIP

More homeowners have been suffering from homebuyer’s remorse—as most of them regret buying their homes in 2023, causing a decline in their overall happiness. 

A report from Clever Real Estate found that 93% of recent buyers have regrets about their home-buying experience. That’s a 29% increase from 2022 when homebuyer regret stood at 72%.

FINANCIALLY OVERWHELMED

Of the 93% of buyers who stated that they have regrets, the biggest reasons have to do with their finances. Thirty-three percent were unaware of how much maintenance homeownership requires—and the costs that go along with it. In addition, 28% stated that they spent too much and another 28% think their interest rate is too high. 

Other regrets included feeling pressured to make an offer, not liking the home’s location, and buying sight unseen. 

STRUGGLING TO PAY MORTGAGE

Not only do these buyers regret something about their home-buying experience, but 62% report struggling to pay their mortgage on time, as noted in the report. 

For these homebuyers, it has been a downward spiral, as 29% say their debt situation has worsened since purchasing a home, and 27% report their overall financial situation has worsened. 

PAYING MORE THAN NATIONAL AVERAGE FOR HOMES 

People looking to buy a home have come to terms with the fact that they will have to spend a pretty penny and compete with possibly even higher prices. 

Buyers opened their budgets this year, with 23% spending more than the national average price to afford the home they wanted.  

And while not all regret the price they paid for a home, more than half of all recent buyers (58%) and nearly two-thirds of first-time buyers (63%) admit they overpaid. This led to 78% of buyers surveyed co-purchasing a home or sharing expenses with family members. 

HELP YOUR CLIENTS AVOID HOMEBUYER’S REMORSE

While Clever’s report states almost all homebuyers have at least some regret as of 2023, not all agents are seeing that in their markets—especially if they are able to secure low rates. Sam Reifman-Packett, founder of the RP Group at Compass, shared how happy his buyers are.

Being able to help your clients secure low rates is essential in this market, especially because so many turn to agents for financing advice.

Of course, even if buyers do lock in a low rate, there are plenty of other challenges. Tom Toole, Founder of the Tom Toole Sales Group and BAM Creator, states the biggest issue he’s seeing isn’t buyer’s remorse, but being able to get a home in the first place. This is especially true for properties at the median price point or below, where housing inventory is particularly scarce.  

Helping your clients avoid homebuyer’s remorse starts with the very first meeting. Find out what the top of their budget is, and educate them on all the costs associated with homeownership. This includes everything that goes into a monthly mortgage payment, as well as typical home maintenance costs. 

In addition, agents must know all financing options available from mortgage lenders in their market. Talk to lenders in your area frequently to learn about current rates and new options. Because—as the two team leaders stated above—the buyers who are able to secure low rates remain happy with their home purchases.