A number of hidden costs in the home-purchase process caused a whopping 72% of homebuyers in a survey sample of 1,000 to report they had regrets about their experience, according to new research from real estate firm Clever. The cause of their remorse was many-fold, but mainly consisted of a lack of funds, according to Clever.
The survey also found that 68% of respondents said they would do things differently if given another chance, believing that there could have been as much as $24,000 in savings if they’d been able to approach the situation differently in one manner or another. This is in keeping with the survey’s findings that nearly half (48%) of respondents said their expenses were higher than anticipated.
The frustrations didn’t stop there though. Clever’s report showed that 39% of those surveyed said they exceeded their budgetary limits, with 38% claiming they had difficulty maintaining their savings/emergency funds as a result of the expenses associated with homebuying.
Additionally, 79% of buyers were forced to compromise on one of their priorities, the most common of which was buying within budget. Buying within budget was also, coincidentally, the most common priority listed by 57% of buyers; one in 10 (11%) then proceeded to exceed their budget for the purchase of the home.
How did the budgets get exceeded? A breakout of expenses shows that, on average: homebuyers spent $13,498 on repairs and renovations, $6,446 on furniture, fixtures and appliances, $4,754 on closing costs, $3,943 on concessions to sellers, $2,670 on moving costs, $387 annually on mortgage insurance and $277 on home inspections.
Of these additional expenses, many came as a surprise to the wallet once again. For example, one in seven homebuyers who paid their closing costs couldn’t name what even one of those closing costs were, according to the survey.
Clever’s research also revealed that one out of every six homebuyers surveyed said the process was too expensive from start to finish.
Click here to read the full report.
