NerdWallet says buying a home today could likely lead to regrets as buyers continue to dish it out over a small selection of high-priced homes. This comes from NerdWallet’s August survey, which found 67% of Americans who recently purchased a home said they have some regrets. Compared to similar data from the past five years, this share is high. But understanding the risks may help buyers from regretting their purchase decisions. The first thing NerdWallet suggests to mitigate buyer’s remorse is not rushing decisions, despite the frantic market. Buyers should consider forming a game plan when that dream home does hit the market.
Before jumping into the market, organize your budget and your wish list. Get specific: Know which features you’re willing to compromise on and what’s out of bounds in regards to sales price. Making decisions such as “Do we really need a third bedroom?” or “Can we afford another $50,000?” on the fly is risky, at best. Know how you’ll answer those questions before you begin.
2. Sacrificing big just to snap up something
The supply of homes being offered for sale is paltry, so buyers are unlikely to find one that satisfies their wish list. Being flexible is a must in this market, but sacrificing too much could leave you with a home that’s a far cry from the one you envisioned.
The number of homes on the market has fallen by about 55% from September 2019, when it last peaked, according to residential listing data from Realtor.com. In March and April this year, inventory fell below half a million active listings after a three-year average of 1.3 million from 2017 through the end of 2019.