Homebuyer Regrets: 5 Reasons Millennials Wish They Hadn’t Bought a Home

homebuyer regrets

There are a lot of reasons why you might have homebuyer regrets. Although owning a home is one of the hallmarks of success for the middle class, it’s not without its problems. Millennials, in particular, have discovered that their financial situation is shaky. As a result, more than half of millennial home owners have homebuyer regrets. Here are five key reasons:

1. The Great Recession

Research indicates that millennials are considerably more likely to have homebuyer regrets than their Baby Boomer counterparts. The younger Gen Z has plans to buy homes young. So what’s going on with millennials? The great recession is likely a huge part of the problem.

This generation was already working, but not very far along in their careers, when The Great Recession struck. As a result, they were financially hit hard. If they’d already bought a home, they likely have found themselves struggling to make mortgage payments. The rest of their financial lives has just been too precarious.

2. They Didn’t Pay Enough Down

More than two thirds of millennials paid less than 20% for the down payment on their homes. This means two things:

  • They still owe a lot of money on their home mortgages.
  • Their mortgage payments are higher than if they’d paid more down.

Both of these things have led to some big homebuyer regrets.

3. They Didn’t Plan for So Many Ongoing Home Costs

Buying a home is just the first step of the home ownership process. You also have to keep your home maintained, which costs money. You might need renovations. Additionally, you may have to use your homeowner’s insurance, which can lead to greater rates there over time. Many millennials seem to have failed to plan for these costs.

“Millennials are planning 49% more renovations than Baby Boomers over the next five years, but they’re also three times as likely to use a personal loan and twice as likely to use a credit card to finance their renovations than Baby Boomers.”

Almost half of them were surprised at the cost of maintaining their homes. And they were four times as likely as Baby Boomers to use their homeowner’s insurance in the past year. So, they are spending more money on maintaining and renovating their homes. Yet they don’t actually have that money, which means that they’re paying high interest rates on loans to cover those costs. It’s overwhelming.

4. Overall, Their Mortgages Are Too High

More than anything else, millennial homeowners resent how much money they pay towards their mortgages. Maybe they aren’t earning enough as they still try to recover from The Great Recession. Perhaps they have too many other costs in their lives, including children and exorbitant student loans. Maybe the choices they’ve made with down payments, mortgage companies, and refinancing have left them struggling financially. Whatever the reason, the number one cause of homebuyer regrets among millennials is the high cost of their mortgage.

5. They’re Still New to Home Ownership

More than 60% of millennials have only owned their homes for five years or less. Those first years are hard. You’re adjusting to paying a mortgage. You’re learning all that it takes to pay for and maintain a home. You may not be used to the higher energy bills and property taxes as compared to when you were renting. Perhaps, as time goes on, these same millennials will have fewer homebuyer regrets because they’ll have adjusted to what it means to own their homes.

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What You Need To Know Before Selling Your Home

Selling your home requires some research and time.

Selling your home requires some research and time.

Selling your home can be both exciting and stressful. It’s typically a sign of a new adventure ahead, whether it is moving to a new area for a job or even downsizing to start a new milestone in your life.

With the real estate market flourishing right now, depending on where you live, you may have an easier time putting your house on the market now than you did in previous years. However, regardless of how well the market is doing, you still need to be aware of some do’s and don’ts of real estate. Here is what you need to know before selling your home:

Speak with a professional.

Even if you are selling your home on your own, hiring a real estate attorney will be helpful to have some legal eyes look over your contracts and paperwork. Catching any flaws before any sales are finalized can help to save you money in the future.

Put it online.

Online house listings make your home even more visible to the public along with providing quick updates regularly to browsers.

Hire an inspector.

You’ll save yourself so much time and energy by having a qualified individual come in and inspect your home. You should consider doing this before you even put your house on any listings or begin showing it so that you can strengthen your sale price by making any repairs or updates as needed.

Focus on curb appeal.

Take some time to improve the curb appeal of your home in order to attract more buyers. Invest in some simple landscaping and keep your lawn tidy (if applicable), raking leaves in the fall and clearing your sidewalks of snow in the winter. Think about what attracts you to a new property and apply this concept to your own home.

Price your home in line with both the area and market.

As tempting as it may be to price your home that extra 100 grand you feel it is worth, doing so may turn off potential buyers. You can attempt to go a little above market price, but talk with a trusted professional on what they would advise.  If you are in a location that has many individuals selling their home, you will have a hard time attracting a buyer if your price is out of range.

Have your paperwork ready.

Being as prepared as possible will help keep things flowing as best as possible when you are ready to put your house on the market. You’ll be able to answer any questions about taxes, the property and the like with ease by having any and all documents associated with the house on hand. Different questions may arise not only from the potential buyer but also from your listing agent or attorney. It may require filing a quit claim deed.

Get rid of the clutter.

Before you even start showing your house, clear out your closets, get rid of clutter and make it look even extra homey by adding in some house plants in various rooms. The key is to show space to those coming to consider buying your home. If they can not only imagine themselves living there but see how much space is available, you will be helping to boost the sales process along so that you can move on with your new adventure.

Hire your own real estate agent.

Although an added cost, having your own agent is a great way to obtain the price negotiations that are favorable to you. Agents representing buyers have more of a loyalty to their client instead of helping you sell your home, so they will be trying to get the best deal for their customer. Thus, if you have your own agent, you’ll be able to counteract professionally with rates that are close in alignment to your selling goals.


Selling your home can be intimidating (and nerve-wrecking), but by following the above tips and doing your research, you will gain a much better handle on the process. Just keep these in mind with each real estate sale.