According to a new poll taken by Bankrate, nearly 64% of Millennial homebuyers say they have at least one regret about purchasing their current home. The U.S. poll spoke to over 2,500 Gen Y, Gen X and Baby Boomer homeowners. 45% of Gen X and 33% of Baby Boomers reported having some type of remorse about their current home.
 
Dissatisfaction seems pretty common. Overall 43% of all homeowners polled had at least one regret about their home.
 
Over the past few months, Ontario and other sectors across Canada, have seen a real estate market on fire, with prices sky high and inventory at all-time lows. We have seen bidding wars between 10 different clients on homes that a year ago might have only received 2 or 3 offers.
 
With all the excitement of the current real estate market, it’s easy to see how mistakes can be made and why down the road homeowners have regrets. Let’s break down the 4 most common regrets Bankrate polled and how to avoid them when buying your home.
 
#1 Understanding Costs
 
16% of those polled said their biggest regret was not understanding the total cost of buying a property. From the closing costs, moving costs, mortgage payments and the overall home maintenance expenses, buyers were surprised to find out that the listing price was not the only thing they needed to budget for.
 
How To Avoid This Regret
 
The best place to start is with your real estate agent. Your real estate agent can break down the entire process of a real estate transaction and point out where hidden costs might appear. They might also recommend you save 1% to 3% of your home’s list price each year for repairs and maintenance expenses. Then you need to talk to a mortgage broker who can help you set up a payment plan that works best for you.
 
#2 Buying A House That Was Too Small / Too Big
 
The survey found 9% of homeowners bought a house that was too small and 7% bought a house that was too big. Those who bought a house that was too small probably were looking in major cities or popular areas. This is where you will find small properties for higher prices. Depending on your lifestyle you might think a small place will do but what fits you today might not fit tomorrow.
 
Purchasing a house that is too large is another common error especially if big, modern-looking homes are listed for lower prices. These homes can be found in more rural or less developed areas. Meaning you could live in the middle of nowhere in a very large and beautiful home.
 
How To Avoid This Regret
 
When buying a home you need to think with your head more than your heart. You need to consider how this home fits into your life now and in the future. If you plan on starting a family in the next few years you need to ask, is a small apartment or house the best thing? If you do not enjoy cleaning your house every day of the week then maybe a big house isn’t the right fit either. A house needs to fit your life, not the other way around.
 
#3 Bad Location
 
Buying a house in a bad location can mean a number of things. Perhaps it’s too far from your work, the neighbourhood isn’t friendly towards your needs (ex. your neighbours like to party and you like to be asleep by 9 pm), or maybe there is nothing around that you enjoy.
 
How To Avoid This Regret
 
Regardless of the why, when you go to buy a home you need to consider what you need from the location. The house might be perfect but if the town, neighbourhood or street doesn’t check your boxes the house will never feel right. Create a list with your real estate agent of what it is you like to do and what you want to live close to.  
 
#4 Overpaid
 
6% of homeowners polled said that they regret overpaying for their house. Give it a few years and those buying homes now in Canada might say the same thing. Especially in today’s market with prices higher than normal, people might be overpaying for a house. The biggest problem is when you go to sell you might not make that money back.
 
How To Avoid This Regret
 
If this is a regret you are concerned about, you need to speak to your real estate agent. They might advise you to wait. Many first-time homebuyers will be concerned about this and your fears are valid. You want to ensure you can afford the home you’re purchasing and that you’ll be able to live comfortably in it.
 
When it comes time to buy a house, whether it be your first or your fifth, you need to build up your savings, have all the proper inspections completed and do your homework about the market, the home’s location and think about the future. But the most important thing you need to do is work with a trusted real estate agent who can help guide you through this process and listen to your concerns.
 
If you are thinking of buying in the next few months and have a few concerns, please get in touch with me. I’d be glad to help you through this process.   

At Knowledge Broker, our goal is to create an open-source of information for all our clients. At the end of the day, they get exactly what they want and what they need. If you know someone who could use our help or services please put them in touch with us or send us their details using the contact information below.
  

JOSHUA CAMPBELL (@knowledgebrkr)
Real Estate Broker
Coldwell Banker The Real Estate Centre, Brokerage
joshua@knowledgebroker.ca
249 Avenue Road • Newmarket, ON L3Y 1N8
289.210.6007