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What Every New Homebuyer Needs to Know in 2024
If you're planning to buy a home in the next year, there are some crucial things you need to be aware of. A recent survey, May 2024, from Clever Real Estate uncovered the biggest challenges and regrets facing today's homebuyers - and trust me, you'll want to learn from their mistakes.
Be prepared to spend more than you originally budgeted
First off, be prepared to spend more than you originally budgeted. A whopping 52% of people who purchased homes in 2023 and 2024 ended up spending over $500,000, even though the average buyer was only planning to spend around $483,000. Blame it on those pesky high interest rates and a shortage of affordable homes on the market. Nearly a third of recent buyers said purchasing was financially harder than expected.
And even after they moved in, the financial strain didn't let up for many new homeowners. Since buying, 44% have had to take on additional debt just to maintain their lifestyle, and 43% have struggled to make those hefty mortgage payments on time each month. No wonder nearly half are feeling in over their heads financially.
Homebuyer regrets
Here's the kicker - despite making major compromises and busting their budgets, 82% of recent buyers still have regrets about their home purchase. The biggest regrets? Ending up with a home that requires too much maintenance, doesn't meet all their needs, or cost more than they could comfortably afford.
How to buy a home 2024?
First, think long and hard about how much house you can realistically afford - and then stick to that budget, even if it means making some sacrifices. Sure, an updated kitchen is nice, but not at the expense of a solid foundation and new HVAC system. Prioritize the unsexy stuff first.
True costs of homeownership
You'll also want to go in with your eyes wide open about the true costs of homeownership, beyond the sticker price. Have an emergency fund for unexpected repairs and be honest about whether you're willing to put in the time and money to maintain an older home. Don't be afraid to thoroughly grill the seller on the condition of the property.
Educate yourself on the upcoming changes
Finally, educate yourself on the upcoming changes to how real estate agents get paid. Buyers will likely be on the hook for their agent's commission starting later this year, which could add thousands to your upfront costs. One in three buyers say they're less likely to use an agent under the new system. If you do hire one, be prepared to negotiate and look for savings elsewhere.
The 2024 housing market is shaping up to be another challenging one for buyers, but armed with these insights, you can avoid some of the pitfalls and find a home you love at a price you can live with.
