The Top 5 Regrets of Recent Home Buyers

Regret has reared its ugly head among pandemic-era home buyers, with numerous reports covering the many reasons why. But that's not the point of this article -- not entirely, anyway.

Sure, it's a cautionary tale for anyone tempted to rush into homeownership. However, we'll also talk about what new homeowners who deeply regret signing a mortgage contract can do about it now.

Why homeowners are unhappy

Each time my husband and I have closed on a home, there have been hours of pure bliss, sometimes stretching into days of excitement. And then reality sets in. Maybe the walls were in worse shape than we imagined, or we suddenly realized that all the carpeting needed to be replaced. It turned out the exciting part was finding a house and knowing the search was over. The sobering part was recognizing that we'd taken on a massive responsibility.

Since early 2020, when the inventory of homes for sale dried up like Lake Mead, home buyers have scrambled to win bidding wars and nail down mortgages. In their rush, many have found themselves entertaining second thoughts. According to two separate surveys -- one from home insurance group Hippo and the other from Clever Real Estate -- here are some of the most common reasons folks say they regret their decision to buy.

1. They rushed into the purchase.
2. They spent too much to buy the house.
3. They have felt in over their head financially since purchasing their home.
4. Home maintenance is more expensive than they anticipated.
5. They compromised too much to become homeowners.

What pushed buyers to buy quickly and overpay?

In 2020, at the beginning of the COVID-19 pandemic, the Federal Reserve moved to keep interest rates low in hopes of keeping the economy alive. The combination of those low rates and low inventory meant that more buyers were vying for fewer potential homes. As a result of this competition, home prices were pushed to record highs.

When it became clear that the economy was doing better than expected and the Federal Reserve moved to raise interest rates to fight inflation, the competition continued. Only now, buyers who planned to take out mortgages were paying more for those home loans.

In short, it was the perfect storm.

What unhappy homeowners can do

Although it may be a cold comfort to regretful homeowners, it's important to know that many regrets are normal -- even during the best of times. As I mentioned, it's not until you get into a home that you have time to take stock of the challenges before you. In fact, according to Hippo, home buyer's remorse bites a full 52% of us in the derriere. And the younger the buyer, the more regrets there tend to be. In fact, 63% of home buyers between the ages of 23 and 38 say they have regrets.

And if you're a homeowner kicking yourself for not doing enough research or failing to weigh the pros and cons before signing the purchase offer, stop. Just stop. Even if you'd done everything by the books, you would have faced post-move-in regrets.

Beating yourself up serves no productive purpose. Instead, now is the time to work toward turning things around. Here are three tips that can help.

• Adjust your budget. Nothing is worse than lying awake at night, worried about bills. Revisit your monthly budget and figure out where you need more money and where cuts can be made. It sounds insultingly simple, but adjustments are necessary as you grow accustomed to your new bills. You may find that a great budgeting app can help.
• Make it your own. Even if you don't have the money for big projects, take on a few small ones. According to the Hippo study, 47% of new homeowners said that completing home maintenance and repair tasks motivated them and increased their pride of homeownership. Whether it's working in the yard, painting a bedroom wall, or adding new hardware to kitchen cabinets, take steps to make the house feel more like your home.
• Invite people over. A house is just a house until you begin to make memories. Anything you do that involves others, from having regular game nights to throwing a 4th of July barbecue, will help you create positive memories, and those memories tend to translate into positive feelings.

Ultimately, buyers who regret their decision today may look back on their mortgage not as an albatross around their necks, but as a ticket for a better future.