Tips for Overcoming and Avoiding Homebuyer’s Remorse

Buying a home can be an expensive and lengthy process. Sometimes the stress of it all is enough to make you regret ever starting the house hunt to begin with, especially if your new home came with hefty costs. Down payments, large mortgage payments, and unexpected repairs can all lead to homebuyer’s remorse.

It’s more common than you might think — 93% of U.S. homeowners who purchased a home in 2023 experienced it to some degree. And it’s normal to experience big emotions around any large life-changing decision. Luckily, there are ways you can overcome any second thoughts you that may creep up on you after buying a house — and steps you can take before closing to avoid it altogether.

Four ways to overcome buyer’s remorse

You’d think that the anxiety would dissipate after you sign the closing documents and have your new home’s keys in hand. But many people feel regret and worry they’ve made the wrong choice. But remember, buyer's remorse doesn’t usually last forever. If you're struggling with a recent home purchase, here are a few ways to overcome homebuyer's remorse quickly so you can get to enjoy your new home.

1. Identify the cause.

There are lots of reasons a new homeowner may feel regretful after signing on the dotted line. Unexpected maintenance and repairs, a new environment, and higher monthly costs are just a few. The first step to overcoming your anxiety is figuring out what about your new home is causing it. Then, you can take steps to fixing problems that need to be addressed or outlining a financial game plan to replenish your budget.

2. Focus on the positives.

You may find yourself getting caught up in the little details. Maybe the closets are smaller than you remember, or that one step squeaks every time you step on it. If you are repeatedly finding faults in the home you’ve bought, remind yourself of the positives and voice the attributes that made you fall in love with the house in the first place.

3. Build your new routine.

We’re all creatures of habit and moving into a new home can throw our normal routines into disarray. Establishing a routine and building new habits can help reduce stress, and ultimately overcome those heavy feelings of regret.

4. Start decorating.

A new kitchen accent, repainting a wall, or adding your own personal touches can go a long way to make your new house feel like home. It may not happen overnight, but taking the time to add your own style and planning renovations will transform the new space you’re in. Decorating is a great strategy to take ownership of your home.

Six tips for preventing homebuyer’s regret

If you’re in the process of home buying, don’t let your anxiety get the best of you. Just breath and remember you’ve done the research. Here is a list of what you can do to ensure a smooth buying process and feel more confident in the home you choose:

1. Don’t bite off more than you can chew! Have a budget and stick to it.

According to a 2023 survey, the #1 reason homebuyers experience regret after purchasing a new home is the feeling they overspent for a home that requires too much maintenance. So be proactive. Calculate your monthly budget before you start shopping. Include your current debts and other monthly expenses. That way, you’ll be able to see how much of a mortgage payment you can realistically afford. Then add some wiggle room.

It’s a good idea to get pre-qualified on a mortgage, so you have a good sense of how much you can get approved for. But remember, the amount a lender approves you for may be higher than the amount you should actually spend, based on your monthly expenses.

One more thought. Be prepared for the fact that once you’ve moved in, your finances may feel stressed and stretched. Your budget should include what you expect your monthly and one-time-only expenses to be. This will help you make decisions about which costs need immediate attention.

2. Don’t underbuy either.

Beware the temptation to opt for a house that’s less than you wanted because it feels “safer.” This is another common cause of buyer’s remorse. Remember: things that seem like minor inconveniences can morph into big things later. For example, it really worth it in the long run for you to sacrifice an eat-in kitchen or a larger yard or a two-car garage? Here’s where a good real estate agent can help — someone who understands your situation and can help you in your decision.

3. Take your time.

Not only is a home a big expense, it’s also a huge commitment. Slow down and take the time to find a house you can see yourself in for years to come. It may seem simple, but having a list of 1) your non-negotiables, 2) your wants, and 3) your “would-be-nices” during the house hunting process can make a big difference — and help you feel confident about your plan.

Pro tip: Consider the new home’s location carefully — it’s the one thing you cannot change once you move in. If it’s on a busy street, is that a deal breaker? Would you be more comfortable gaining a big yard if it came with the enticing cost savings of a less popular neighborhood?

4. Work with a trusted real estate agent.

Finding a trusted real estate agent with deep local experience can ensure realistic expectation are set from neighborhood desirability and local market conditions to comparable property values, so you don't overspend.

5. Invest in a home inspection.

You can avoid any unwanted surprises and repairs by investing in a quality home inspection. You’ll gain a better understanding of the house and have the ability to negotiate price or repairs with the seller once you have the report in hand.

6. Don’t forget about home repairs.

Remember, the expenses don’t end when you buy a house. They’re just beginning. Many new homebuyers are caught off-guard by the cost of repairs and monthly upkeep. Again, knowing your possible costs up-front and building them into your budget is the best way to avoid feeling overwhelmed and maybe even regretful once you take ownership. Here are some tips to help you feel secure about your finances:

• Set aside 1%–4% of your home’s value if you can for annual home maintenance. For example, if your home is valued at $200,000, budget $2,000 to $8,000 per year to spend on annual upkeep.
• Be prepared for expenses — even in the first year. A 2023 survey revealed that many new homeowners needed to deal with home maintenance and unexpected issues that required paying for repairs in their first year of owning their house.
• Remember: Cost and time estimates are subject to change. When you get a contractor estimate for a new project or repair, it’s wise to keep in mind that estimates are just that, estimates, and may be subject to change after the work begins if the scope or nature of the work changes. It’s a good idea to build a little wiggle room into your budget — just in case the costs increase.

To sum up, the world we live in is fast-paced and the housing market can be complicated and stressful to navigate. Home buyer’s remorse happens, but following the tips above can help you minimize the stress and overcome regret.