By: Melissa Dittmann Tracey | REALTORMag
A large crop of unhappy homeowners is emerging after having time to settle with their hasty pandemic purchase in the last couple of years. Buyers at the time were bidding up home prices to beat out fierce competition, and many waived the home inspection or appraisal to get the house they wanted. But now they may regret the extremes they went to for a home: More than three-fourths of U.S. homeowners who purchased in the prior year expressed regret about their decision, according to an October survey from Hippo(link is external), a home insurance group. The top reasons for their regret are feeling like they overspent (30%) or rushed the homebuying process (26%), according to a separate survey from Clever Real Estate.
What’s more, about half of recent home buyers said in the Hippo survey that homeownership is more expensive than they anticipated, there’s too much maintenance and upkeep, and they compromised too much for their home.
The ultrawealthy are having regrets, too. About a quarter of luxury buyers who purchased a home in the last two years say they are not satisfied with their property because of lifestyle changes, property size, remote location, lack of neighborhood amenities or a return to full-time office work, according to the Coldwell Banker Global Luxury Trends Report.
Will They Go?
Many homeowners said that knowing what they know today, they would’ve bought a different home (64%) or waited longer to buy (63%), the Hippo survey found. Further, more than a quarter of homeowners said that selling their current home has become a bigger priority to them.
“With the insatiable buying frenzy and quick decisions being made, there were bound to be stories of regretful buyers who leaped too quickly into unknown environs,” Diane Hartley, president of the Institute for Luxury Home Marketing, said in the Coldwell Banker report. “These buyers may end up staying in place and renovating, or they may be encouraged by rising inventory levels in their local marketplace this year and relist their current home for a profit. Others, if they have the financial means, may simply choose to keep the home as part of their investment portfolio, convert it to a rental and make a lateral move to a different, more affordable market.”