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REALTOR®: Recent home buyers have fewer regrets about purchasing a home

Wednesday, May 1, 2013

Americans continue to value homeownership, despite the recent downturn a few years ago. While very few current homeowners responding to a recent survey wish they had rented, more than half of Americans who were involved in the process of choosing their current home (52 percent) expressed at least one regret about their current home or the process of choosing it.

Findings from a Real Estate Regrets survey released by Trulia indicate 75 percent of Americans say it's better to buy a home now than a year from now, but buyers are feeling the pressure of rising home prices this spring. The survey conducted online by Harris Interactive in March among 1,370 homeowners and 706 renters found many homeowners wish they had invested more when they bought their home.

"Although the recession, tight credit, and foreclosures have lowered homeownership in America, people would still buy – and buy big – if they could. Homeowners' biggest regrets are wishing they bought a bigger home and wishing they remodeled more," according to Jed Kolko, Trulia chief economist.

Top regrets among homeowners include choosing a home that is too small (34 percent); not remodeling more (27 percent); not having more information about the home before they decided (22 percent); not putting more money for the down payment (18 percent); and not being financially secure (16 percent).

Fifty-five percent of recent home buyers - those who moved into their current home between 2010 and 2013 - had fewer regrets than buyers who purchased their home during the housing bubble. Sixty-three percent of home buyers who moved into their current home from between 2003 to 2009 expressed some regret. The report states better home affordability, lower mortgage rates, and conservative bank lending probably helped recent buyers avoid major mistakes in comparison to those who purchased when prices were higher and lending practices were more lax.

When comparing homeowners to renters who were both involved in the process of choosing their current home, 42 percent of renters surveyed wished they had bought instead of renting.

While buyers are eager to purchase homes, sellers are holding back. Only 32 percent of those surveyed believe it would be better to sell now than a year from now. The survey indicates hesitant these patient sellers, little new construction and fewer distressed homes for sale, have created a seller's market, pushed inventory to a 12-year low.

The low inventory is causing buyers to scramble in order to try to win tough bidding wars and placing them at risk of making mistakes they could regret. Some buyers are so desperate they are making snap decisions, like purchasing a home with no contingencies.

Buyers are taking a big risk by purchasing a home as is, with no disclosure package, according to Carolyn Miller, president of the Silicon Valley Association of REALTORS®. "This is a crucial time when eager buyers need to turn to a REALTOR® for professional advice and guidance, so they can avoid mistakes and rush into decisions they may regret later," said Miller.

Miller said unlike other real estate agents, REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. "REALTORS® have many resources to assist in your home search and can help you select a home by providing objective information about each property," said Miller.



The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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