In today’s competitive real estate market, prospective homeowners seem to be experiencing high levels of stress in the home buying process. Mortgage rates continue to fluctuate and inventory is limited in some areas.
Buying a home is a stressful and time-consuming process. A recent survey from Owners.com shows that more than seven in 10 potential home buyers are spending an average of one to three hours a day looking for a home online and on the ground.
In fact, in a survey of 1,200 people considering the purchase of a home this year recently conducted by Owners.com, 72 percent stated that they expect to experience stress in the process. Many cited financial aspects as the most stressful.
The three greatest fears expressed by survey participants were: (1) Fear of losing earnest money deposit (64 percent); (2) Becoming “house poor” (61 percent); and (3) Experiencing a bidding war which would drive up the price (59 percent).
For those who are determined to buy a home this year, some are willing to pay more for a home than what they had originally planned. More than half (55 percent) said they were willing to go beyond their budget, and In fact, some stated that they were willing to spend $37,809 more than what they had originally budgeted for a home purchase.
Considering these monetary pressures, some consumers are considering real estate models that offer opportunities to cut costs in the transaction.
- Some said they would be willing to handle the home buying or selling process themselves if they would be charged a lower commission. Approximately 85 percent said they were likely to consider this opportunity if it meant they had access to some of the more complicated transaction services like the appraisal or legal documents.
- Nearly one-quarter of respondents (23 percent) indicated that they would be motivated to work with a real estate agent or broker who would reward them financially for the work they do on their own.
"As home prices and interest rates increase and housing inventory remains low, buying or selling a home is an emotionally charged process for many," said Steve Udelson, president of Owners.com. "Buying a home is one of the largest purchases most people ever make and it's exciting to see that consumers are willing to take on some of the work themselves to save money, which can make all the difference in this current market.”
This home buyer study was completed online among a random sample of the general U.S. population and an oversample of consumers in the Atlanta and Miami region. A total of 1,289 potential (defined as very or somewhat likely to purchase a home in 2017) home buyers participated.
Owners.com is a tech-enabled real estate brokerage that handles all key aspects of the home buying and selling experience on one platform. It provides savings through right-sized commission structures, smart digital tools, and personalized service from local agents.