But don’t blame the real estate agents, according to a new survey.
A recent online survey of over 2,000 U.S. adults from Redfin, a full-service real estate brokerage, revealed that 1 in 4 American homebuyers have buyer’s remorse. This survey also found that 89 percent of Americans who bought or sold a home in the past 10 years have used a real estate agent – and 47 percent of those people reported that they “loved working with” their agent.
Additional information from the survey includes:
- Homeowners in the Midwest (28 percent) than those in the West (20 percent) experienced buyer’s remorse more frequently than in other regions. Buyer’s regret reported in the Northeast was 27 percent and in the South was 25 percent.
- Homeowners age 65 and older had the least amount of remorse, with 85 percent saying that they would buy their home again (compared with 72 percent of those ages 18 to 64).
- Buyers with a Household Income (HHI) of $100,000 or more expressed more satisfaction with their homes (86 percent) than those with a HHI of less than $100,000 (70 percent).
- Buyers with a college degree or higher education had higher home satisfaction (82 percent) than those with at most some college education (72 percent).
Glenn Kelman, Redfin CEO suggests that real estate agents could prevent this sad situation…
“With flash sales, bidding wars, price jumps and inventory crunches in many markets, it’s important to have a real estate agent who is just as motivated to have you walk away from a bad house as to pounce on a good one.”
Of course a CEO of a real estate brokerage would side with the agents. Gary Herman, President of Consolidated Credit, believes educating yourself on the housing market before you shop for a new home is essential if you want to purchase the right house at a fair price.
“Why would anyone try to buy a home without first educating themselves on the current market, or what trends professionals believe will occur in the near future? You don’t buy a car blind, so you should certainly get some help from a housing counselor before you make the largest purchase of your life.”
These tips can help you avoid regret on your most important investment:
- Know what’s happening with the market. That includes current mortgage interest rates and whether it’s a “buyers’ market” or a “sellers’ market.” Keep in mind, that even if the market is weak in a certain area, specific neighborhoods and areas within that metropolitan area may be highly competitive.
- Plan for the long-term. For instance, don’t buy a house in an area with bad school ratings if you plan on having kids in 5-10 years. If you’re close to retirement age, consider if this is a house that can carry you into your golden years, so you won’t have to get a new home on a limited fixed income.
- Don’t overestimate your desire to renovate. It’s easy to fall in love with a fixer-upper when you’re out shopping and imagining the possibilities. But things like your budget and a busy schedule may keep you from renovating after you move in, which means you won’t be happy.
- Don’t let anyone talk you down. If you’re working with a realtor, make sure they understand your purchasing priorities and wants. Don’t let any agent talk you out of things you wanted simply because it’s a “tough market.” If they can’t find you the home of your dreams, that doesn’t mean it’s time to settle – instead, it may be time to find a new agent.
If you’re in the market for a new home, or having trouble paying off your mortgage, contact a Consolidated Credit certified housing counselor today. Consolidated Credit is approved by the U.S. Department of Housing and Urban Development (HUD).