A recent survey shows that around 45% of homeowners in the United States regret purchasing their current homes, with the most common complaint being the high maintenance costs and hidden fees associated with homeownership, leading to feelings of frustration.
According to the “2025 Home Affordability Report” released last month by consumer financial services company Bankrate, many Americans regret their home-buying decisions due to unexpected costs like hidden fees.
Based on Bankrate’s “Hidden Cost of Homeownership Survey” released in June 2024, the average American homeowner spends over $18,000 annually on non-mortgage housing expenses. Bankrate estimates that in states like Hawaii and California, these costs can be even higher, reaching approximately $29,000 per year.
These expenses, such as internet bills, property taxes, and maintenance costs, are often not given priority consideration when purchasing a home. However, for those who are already stretching their budget to buy a house, these costs can pose a significant challenge.
Mark Hamrick, senior economic analyst at Bankrate, emphasizes the importance of factoring in ongoing homeownership costs when creating a budget and bidding on a property to prevent exceeding your financial limits, potentially forcing you to forgo necessary home improvements or repairs, or even getting burdened with debt.
Experts suggest several strategies to address these hidden costs:
– According to the residential real estate platform Zillow, one way to avoid unexpected maintenance costs is to thoroughly understand the potential defects of a property, which may involve paying additional inspection fees. This can potentially allow you to negotiate repair costs into the sale price or request the seller to make repairs, saving you money.
– Zillow also recommends that since home maintenance is inevitable, opting for regular, consistent maintenance can be more cost-effective in the long run.
Hamrick from Bankrate advises all prospective buyers to carefully consider their financial needs and goals before rushing into homeownership. It is essential to have sufficient cash reserves to handle upfront and ongoing costs and be prepared to shoulder the full range of responsibilities that come with homeownership.
To gain a comprehensive understanding of your home-buying capability, seeking advice from professionals may be a wise decision as they can assist you in evaluating your purchasing budget.
(This article referenced reporting from CNBC)