For most Americans, a home is the largest purchase they will make in their lifetime, and mortgage payments typically make up the largest portion of household budgets. The numbers don’t lie: The median sale price of homes sold in October 2023 was more than $431,000, according to economic data site FRED. If you’re paying that much money and spending hours searching for and closing on properties, you want to make sure you find a place you love.
Unfortunately, buyer’s remorse exists in the real estate market. However, the good news is that you can avoid it if you know what you’re looking for and what you don’t want. Michael Saladrigas, a real estate agent with Excellence Realty in Florida, says finding a home that fits your lifestyle should be your top priority when buying a home. I often joke that it’s about forcing buyers out of your home, because you want them to find a home (“a property they love”).
Saladrigas shared with GOBanking that his top signs that you don’t like the house and need to continue your search are:
1. Too expensive
Lenders will provide you with a maximum loan amount, but that number does not determine your home budget.
“Lenders will look at your income and credit history,” says Saladrigas. “They don’t know anything about your monthly budget other than the numbers in front of them,” she continued, adding that when you stretch your budget, you pay for things like water leaks and medical bills that are too high to pay for on your mortgage. He explained that stressful situations can arise when you are hit with an unexpected bill. “Buyers need to make sure they can comfortably afford the monthly payments, including taxes and insurance,” he added. Ideally, you should also have money set aside for the inevitable surprises.
2. Your garden is too big (or too small)
A single-family home is more than just a home, and there are many things that need to be maintained.
“For people who aren’t home enough to mow the grass or don’t like working outdoors, a large yard is probably going to be a big headache,” says Saladrigas. Lawn care company Lawn Love estimates that homeowners spend an average of about four hours a week caring for their yards. Of course, you can hire someone else to do the job if you can afford it (the national average for a cut is about $120).
On the other hand, if you have a green thumb and enjoy tending to your garden and creating an outdoor living space, you may not be happy with a condo with little or no garden.
3. Maintenance exceeded expectations
Your mortgage payment is just the beginning of the costs of homeownership.
When renting, the landlord pays for roof repairs, air conditioning service, and appliance replacements. As a homeowner, these expenses are your responsibility. Home maintenance costs vary depending on where you live, the age and condition of your home, but you can expect to spend at least a few thousand dollars a year. Homes with cracked foundations, moisture buildup, aging appliances and elaborate landscaping are likely to require more money and energy to repair and maintain.
“This is another reason to avoid maxing out your loan,” Saladrigas said. Having to pay for an unexpected expense with a credit card or personal loan can put you in a stressful situation, especially if your mortgage payments take up a lot of your budget.
4. Too far from where you’re going
There’s a reason for the real estate adage “location, location, location.” Building the right house in the wrong location is often a bad choice. Saladrigas agrees, saying, “The right home is one that fits your lifestyle…Long commutes from home and school are something that eventually gets old for most people.” said.
It can also be helpful to consider where you shop, go to entertainment, and how far you are from friends and family. You want to spend your time enjoying your home instead of driving back and forth. Similarly, if you want to walk or use public transportation to get to work or entertainment, a car-dependent neighborhood with limited options and fewer sidewalks may not be a good fit.
5. Layout doesn’t meet your needs
According to the National Association of Realtors, the living room, kitchen, and master bedroom are the most important rooms for buyers. “Pay attention to the location of the bedroom and bathroom,” Saladrigas points out. “If you have a small child at home, he may not like a two-story room with the master bedroom on his first floor. Or he may prefer the privacy of a split plan.”
On the other hand, if you plan to continue living in your home after retirement, it may be convenient to have a bedroom on the first floor. As you get older, going up and down stairs becomes more difficult, so you may appreciate having the option of living in a downstairs room in the future. Also, make sure the house has enough bathroom space to accommodate everyone living there. Not everyone needs their own bathroom, but it’s nice to have a spare in case the bathroom is being used or everyone needs to get ready at the same time.
6. Over-renovating
If you love the architectural details of classic Craftsman homes or have a vision of restoring a charming bungalow, it’s a good idea to have the resources or at least a plan before you buy. Helpful.
“I’m not saying you have to love the house as is,” Saladrigas says. “Even if you check off every item on your wish list, you may still find a property that needs a kitchen update. Be prepared for the financial and emotional costs of remodeling.” Home repair shows on TV It may seem easy enough, as workers with sledgehammers break down walls to open rooms and remove dilapidated cabinets. The reality is that home renovations are large projects that are time-consuming, expensive, and can turn up unforeseen issues that need to be addressed.
Building a new home can be a big undertaking, both time-wise, emotionally, and especially financially. Before choosing a new home, be sure to consider the hurdles listed above.
GOBankingRates Details
Source link