Buyer’s Remorse: My New Home Has a Higher Cost of Living!

Due to an increase cost of living, 44% of homeowners have some regrets about their current residence. 

A Case of Buyer’s Remorse

David Weidner, managing editor for Trulia’s housing economics research team, points out that higher housing costs are a leading cause of the regret about the size of a home:

“I think many people faced with higher mortgages and higher rents are having to settle for less when it comes to space.”

Renters’ top regret was wishing they had bought instead of rented (41%). Some may have been too cautious because of the lingering effects of the housing crisis, Weidner said. “In every U.S. major market, it’s cheaper to buy a home than it is to rent … over seven years,” he said.

One in 5 in the survey told Trulia that a housing mistake they made in the past is holding them back from changing their current circumstance.

Every situation is different when it comes to altering your living arrangements, said Weidner. If you’re renting, saving for a down payment may require looking for cheaper housing or taking on a roommate.

“A lot of people are stuck. … People have to be really creative when it comes to changing their housing situation.”

Before buying a home in a new city, the City Vs City cost of living calculator mobile app  makes it easy to see how housing costs (and all their other unique financial circumstances) would look in a different place. This would certainly minimize the regret.

To avoid buyer’s remorse, do more preparation and research, said McBride. Figure out how much you can afford, and then set hard boundaries, before you start perusing listings.

“Unfortunately, too many people go about it the other way, where they start shopping, they fall in love with a house and then they’re pulling strings to see how they can afford it. That’s not a recipe for success.”

Continue reading the rest of the article here.