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Homebuyers Go Back in Time—And Share What They Would Have Done Differently

By Mike Bedard posted 08-28-2024 10:58

  

Buyers Go Back in Time—And Share What They Would Have Done Differently

Caveat emptor—“let the buyer beware”—is a well-known expression in the real estate industry. What it means is rather straightforward: A buyer must do their due diligence when purchasing a home.

Even as buyers are advised to ensure properties are in good condition and free of defects when making a purchase, homebuyer’s remorse has become an all-too-common phenomenon. REALTOR® Magazine recently reported that a staggering 82% of buyers expressed regrets about their home purchases. The most common one? Purchasing a property that required too much maintenance. The second-most cited regret was that a home did not meet a buyer’s needs.

There is no shortage of buyer advice from our industry’s leading publications and trade organizations. And all of it is extremely helpful. But what if we went straight to the source—the very buyers themselves? A recent thread on Reddit, titled “If you could go back in time and start your homebuying process again,” asked recent buyers to detail what they would have done differently.

Share this helpful information with your customers, whether they are jumping into the housing market for the first time or have extensive experience with the buying process.

“Inspect more thoroughly than the inspector themselves. I missed a few things that ended up costing me a few thousand in repairs a month or two after closing.”

Buyers were urged to focus on these key areas while attending an inspection:

  • Roof. Particularly information on the roof’s age and condition.
  • HVAC system. Similar to the roof, details on the system’s age, condition, and life expectancy are essential.
  • Electrical system. Specifically if the system or electrical panels need to be updated or are up to code.
  • Plumbing. If it’s an older home, a buyer should ask if polybutylene pipes are present. (They were banned after 1995.)
  • Structural integrity. Large cracks in the walls can indicate poor build quality or underlying problems.

Buyers were also told to use their noses as much as their eyes. An ammonia smell unrelated to cleaning is potentially a problem related to a refrigerator or washing machine. Fishy odors are a possible sign of an electrical issue. And a damp and musty smell is typically an indication of a moisture problem.

Finally, several Redditors suggested scheduling inspections with an electrician, plumber, and roofer. Of course, the cost of additional inspections could be a financial hindrance for many prospective buyers.

“Seriously visit the property often and really get to know the area. (I feel so ignorant not doing this and it’s actually easy to do.)”

Buyers were urged to remember that they are not just buying a home, they are also buying into a lifestyle. This includes the neighborhood, the larger community, and the residents. Buyers were advised to consider factors like traffic and nearby schools and to check out a neighborhood at different times (days, nights, weekends, etc.) to properly catch its vibe.

“Save more for repairs and changes. Even if recently painted, you probably want to repaint, replace any old appliances or other systems even if not ‘needed,’ fix all of those things that aren’t structural problems.”

When it came to maintenance, Redditors emphasized one time-tested homeowner rule: Expect the unexpected. According to HomeAdvisor’s “State of Home Spending” report, the average annual upkeep of a home is $3,192.

Setting aside money for such costs is essential. One oft-cited budgeting strategy was to annually save one to two percent of a home’s value. Another rule was to allocate $1 to $2 per square foot of a home.

“Do not buy a house you don’t see yourself loving—but also be willing to compromise. We put in an offer on a house we didn’t like, but felt it was one of the only ones in our budget. We ended up relieved when our offer got denied.”

Buyers need to understand that the average home search typically takes months. Taking ample time to find the right home at the right price will help prevent buyer’s remorse.  

One suggested rule was to separate needs from wants. The list of needs (e.g., number of bedrooms, number of bathrooms, a certain sized yard, etc.) can be used to determine which homes to visit. The list of wants (e.g., high-end finishes, landscaping style, etc.) can serve as a tiebreaker when deciding on a preferred property.  

“May sound silly to everyone here, but I had no idea what an ‘escrow’ was or the difference between home insurance and mortgage insurance. So, if you are green like I was research research research anytime you come across something you are not familiar with.”

In today’s digital age, there is no shortage of online resources for homebuyers. Between social media and industry-related websites and publications, today’s consumer can find information on everything from the real estate market conditions in their area to how they can improve their credit score to what loan programs are currently available to them.

Of course, there are no more valuable resources than an experienced loan officer and real estate professional. Redditors recommended that buyers never hesitate to request information from or direct questions to the essential individuals involved in their real estate transaction.

“I didn’t understand that homeowner also means superintendent, porter, garbage collector, maintenance worker, and on and on. Being a homeowner is less a title and more a job description.”

Owning a home delivers its share of perks, including the ability to build equity, total freedom when it comes to improvements and renovations, and potential yearly tax deductions. Yes, homeownership can be rewarding, but buyers need to understand that numerous responsibilities are also part of the package—and require both financial and time commitments.

A valued partner

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Whatever the case may be, Volly can help. Contact us today for a demo and to learn more about how we can be your valued marketing partner.

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