In a fast-paced housing market defined by rising mortgage rates and frequent bidding wars over the course of the pandemic, many homeowners were rushed into their home purchases, and some are now left with doubts about their hasty decisions. Of 1,620 recent homeowners polled by HomeLight, 70% expressed at least one regret about their home purchases, with most underestimating the total cost of buying a home, CNBC reports.
While the majority of respondents expressed financial regret, many also revealed that they wished they had spent more time searching for a home, and some expressed second thoughts regarding location and the unexpected cost of repairs or maintenance.
New homeowners are often surprised by the extra costs of owning property outside of the mortgage and down payment. These costs include property taxes, insurance, condo fees, repairs and closing costs.
Some of the upfront costs are steep, too. On average, buyers pay closing costs averaging 3% to 6% of the purchase price, per Quicken Loans. And a common rule of thumb for the cost of annual repairs is 1% of the total value of the home, which is about $5,000 a year for a $500,000 home.