If you were surprised by the cost of maintaining a home after purchasing yours, you are part of a large group that had the same reaction.
Nine out of ten homeowners who bought a house in the last three years say they were not prepared for the extra costs of maintaining and financing their property, according to a survey conducted by Real Estate Witch, a real estate education platform in the United States.
Additionally, 73% of respondents said they regretted buying their home due to high maintenance costs. On the other hand, 35% of homeowners reported feeling no remorse. In the 2019 version of this survey, 65% of respondents felt no remorse after the purchase.
This is a sign that the costs not only to acquire a property but also to maintain it are starting to bother consumers. The average home prices have increased by nearly 50% since 2019, so it makes sense that recent home buyers regret their purchases or feel they paid too much for them.
Among those who claim to be regretful, the costs that surprised them the most were:
• Property taxes: 33%
• Renovations: 27%
• Utilities: 27%
• Roofing: 25%
• Maintaining the appearance of the home: 24%
• Home insurance: 23%
• Appliance repairs: 22%
• Upgrading appliances: 21%
• HVAC: 21%
• Gardening work: 19%
• House cleaning: 16%
• Foundation repairs: 15%
• HOA fees: 11%
In addition to mortgages, homeowners say they pay an average of $17,459 extra in annual expenses, according to the survey. One of the biggest expenses is renovations. The costs of improving a home can also be quite drastic. Remodeling a kitchen or bathroom can cost an average of $20,000 according to the survey.
If they could turn back time, 57% of homeowners say they would have approached the home buying process differently if they had realized the true cost of owning a home.
Those who regret would do things differently:
• Buy a home that requires less maintenance: 42%
• Negotiate a better price or contingencies on the home: 33%
• Buy a cheaper home: 29%
• Wait longer to buy a home: 27%
Source: CNBC