Survey Reveals First-Time Homebuyer Hindsight

A survey by Guardian Service revealed over 1,000 homeowners’ experiences buying their first homes, including hindsight revelations like buyer’s remorse, emotional challenges and hidden costs. Notably, the majority of respondents were Gen Z or millennials (56%), while 32% were Gen X and 12% were baby boomers. 

Buyer’s Remorse 

The survey found that 69% of respondents did not regret purchasing their first home. However, first-time buyers who bought within the last two years were more likely to have buyer’s remorse (44%), as were Gen Z and millennial buyers (35%). Financially, first-time buyers making less than $50,000 annually were 50% more likely to have buyer’s remorse than those earning over $100,000. 

Buyer’s remorse can be an effect of making a rushed decision. Of all respondents, 38% said they felt pressured to make a decision quickly and were nearly three times more likely to have buyer’s remorse. 

But what do first-time buyers regret the most? Survey says: 

1. Underestimated repair costs (22%) 
2. Chose a too small/big home (19%) 
3. Rushed the decision (15%) 
4. Didn’t negotiate well (13%) 
5. Bought in the wrong location (13%) 
6. Took on too much debt (11%) 
7. Paid too much for the home (9%) 
8. Skipped a home inspection (5%) 

In hindsight, if they could go back and do it again, first-time buyers said they would most likely buy a different home (25%), be more financially prepared (22%), negotiate more aggressively on price/repairs (21%), buy a larger/more expensive home (14%) or wait longer before buying (12%). 

Emotional Challenges 

Buying a home is more than just a major financial decision. Homebuying comes with countless mixed emotions – the most common ones were: 

1. Excited (67%)
2. Proud (50%) 
3. Nervous (40%) 
4. Stressed (37%) 
5. Overwhelmed (29%) 
6. Relieved (19%) 
7. Confident (18%) 

When it came to feeling at home after buying a new home, the majority (61%) said they felt it within the first year. Twenty-one percent said they felt at home immediately, and 11% said it took them one to three years. 

Hidden Homeownership Costs 

The financial reality of homeownership was the top regret for homeowners in this survey. Many respondents (66%) said they experienced unexpected home issues after buying, most commonly including: 

1. Cosmetic repairs (45%) (average cost to resolve: $4,654) 
2. Plumbing or electrical (26%) (average cost: $3,765) 
3. Structural (13%) (average cost: $10,832) 
4. Other (6%) (average cost: $6,150) 

While 56% of first-time buyers budgeted accurately for these costs, 41% said they underestimated them, and 1 in 4 said they felt financially unprepared. Additionally, 50% spent what they originally planned, and 45% exceeded their budget. 

Hindsight Wishes 

Finally, what do homeowners wish they knew before they bought their first homes? 

1. The true cost of homeownership (47%) 
2. How to accurately budget for renovations and unexpected expenses (27%) 
3. The emotional stress of the homebuying process (25%) 
4. How much negotiation power they had (29%)
5. That interest rates and loan terms could impact their finances more than they expected (15%) 

First-time homebuying can be stressful and bring about uncertainties, but Realtors® are skilled experts who are there to guide buyers along every step of the way.