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By Fred Yancy, Broker | Broker in Woodstock, GA

Homeowners', Renters' Regrets Reveal Many Aren't Prepared For New Home

Homeowners', Renters' Regrets Reveal Many Aren't Prepared For New Home

by Broderick Perkins

Three out of four Americans say it's a good time to buy and more than two in five American renters say they are sorry they didn't do so.

Given a housing recovery that's gaining speed, there are likely going to be a larger share of Americans who will be sorry if they don't buy soon.

Online real estate marketplace portal Trulia.com, between March 22 and 26 this year, checked in on mistakes today's home buyers and renters should avoid during spring house hunting season and had Harris Interactive survey 2,130 U.S. adults age 18 and older.

Feeling the pressure of rising home prices, 75 percent of Americans say it's better to buy a home now than a year from now. However, only 32 percent agree it would be better to sell now than a year from now.

"As prices rise in 2013, buyers are impatient while would-be sellers are holding back. Faced with limited inventory, many buyers will feel pressure to act fast - but snap decisions often end in regrets," said Jed Kolko, Trulia's chief economist.

Homeowners are reluctant to sell if they have mortgages larger than their home is worth. Others who are enjoying positive equity, have yet to gain enough equity to profit from a sale.

Those homeowners along with too few newly built homes, fewer foreclosures, bottom feeding investors and other market conditions have pushed inventories to a 12-year low, creating a seller's market, according to Trulia.

The fairly booming housing market and record low mortgage rates could prompt more aggressive buyers to take the plunge and attempt to buy before home prices get too expensive this year. A rush to market, however, puts buyers a risk for making mistakes.

Trulia found that 52 percent of Americans who participated in buying their current home have at least one regret about their current home or the process of choosing it.

Among homeowners who purchased a home, the top five regrets and the percentage of homeowners experiencing each regret were:

  • Failure to buy a larger home, 34 percent.
  • Failure to do more remodeling after buying, 27 percent.
  • Failure to obtain more information before buying, 22 percent.
  • Failure to provide more money for the down payment, 18 percent.
  • Failure to be more financially secure before buying, 16 percent.

"Although the recession, tight credit, and foreclosures have lowered homeownership in America, people would still buy - and buy big - if they could. Many current renters wish they had bought, but very few current homeowners wish they had rented. Furthermore, homeowners are three times more likely to wish they had purchased a larger home than a smaller home. Even after the housing crisis, Americans' main housing regrets are that they didn't invest more in their homes," Kolko added.

Among renters who rented a home, the top five regrets and the percentage of renters experiencing each regret were:

  • Failure to buy instead of rent, 42 percent.
  • Failure to choose a larger rental, 39 percent.
  • Failure to be more financially secure before leaving the nest, 27 percent.
  • Failure to get more information about the rental before moving in, 21 percent.
  • Failure to choose a neighborhood with a shorter commute to work, 18 percent.

"In today's competitive, low inventory housing market, consumers may find themselves giving in to homes they don't really love. Fully prepping for the future will help you lock-in a home type and size that you truly want and will feel good investing for," said Michael Corbett, Trulia's consumer spokesman.

Corbett advises taking time check your credit, get your financials in order, survey the market, hire a good real estate agent and otherwise preparing for home shopping is wiser then taking the fools-rush-in approach.

"Arming yourself with the best available resources helps you avoid making mistakes when you're under the pressure to make a move," Corbett added.

Fred Yancy, Broker

Crye-Leike Realtors

(678) 799-4663



By Richie Lopus,  Tue May 14 2013, 06:11
By Richie Lopus,  Tue May 14 2013, 06:26

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