Challenges in Finding the Right Home May Cause Buyers to Go Over Budget, Owners.com Survey Reveals
May 22 2019 - 8:30AM
Owners.com, a technology driven real estate brokerage, today
released results from a survey of 1,800 consumers who recently
purchased a home. According to the study, finding the right home
was the most difficult factor in the home buying process, which may
suggest one reason many recent home buyers (38 percent) are
surpassing their budget. The study also highlighted that 46 percent
of recent home buyers want more personalized support throughout the
home buying process.
Finding the Right Home is Most Difficult for Home
BuyersWhile home prices are rising in many areas of the
country, finding the right home was more challenging for many
recent buyers than saving for their home purchase, with the
exception of millennials. When asked what the most difficult part
of the home buying process was:
- Nearly half of recent home buyers nationwide (49 percent) said
that finding the right home was the most challenging.
- For millennials, finding the right home was significantly less
challenging than their counterparts (41 percent versus 52 percent
of Generation X (Gen X) and 56 percent of baby boomers). While
millennials surveyed experienced more issues saving for their
purchase (21 percent of millennials said this was the most
difficult, compared to 14 percent nationally, 15 percent of Gen
Xers and 6 percent of baby boomers).
Gen Xers and Baby Boomers Going Significantly Over
Budget; Millennials More FrugalThe challenge of finding
the right home for many recent buyers may be causing them to be
more likely to stretch their dollars. When asked how much they
spent to get into their current home compared to their budget, more
than one-third (38 percent) of recent home buyers nationwide
surpassed their budget, compared to 32 percent surveyed in 2018.
These recent home buyers exceeded their budget by $20,000 on
average, a significant increase from 2018 ($16,510 on average).
Taking a closer look at the demographics:
- Thirty-nine percent of Gen Xers went over budget by $35,000 on
average. In 2018, one-third (34 percent) of Gen Xers went over
budget by $13,996 on average.
- Twenty-seven percent of baby boomers went over budget by
$25,000 on average. In 2018, only 19 percent of baby boomers
surveyed went over budget by $8,024 on average.
- More millennials went beyond their budget than their
counterparts, but spent significantly less, particularly compared
to last year. Forty-six percent of millennials went over budget, by
$12,000 on average. This is in comparison to 2018, when 40 percent
of millennials surveyed went over budget by $24,545 on
average.
Affordability is Considered the Biggest Issue for 2019
Home BuyersWhile finding the right home was challenging
for many recent buyers, it didn’t come out on top as the biggest
concern facing those who will purchase a home in 2019. When asked
what they foresee as the biggest issues facing home buyers this
year, recent home buyers stated:
- Forty-one percent said affordability;
- Twenty-five percent said rising interest rates;
- Twelve percent said buyer competition;
- Eleven percent said finding the right home;
- Ten percent said housing supply.
“It’s not surprising that recent home buyers find it challenging
to find the right home: many markets are still seller’s markets,
and buyers often need to decide very quickly whether they should
outbid the competition,” said Dario Cardile, Vice President, Growth
at Owners.com. “When possible, home buyers should work with
brokerages that can capture their preferences effectively, and help
them find their best match homes quickly. The key is providing
buyers with the right information, a customized approach and the
guidance of smart agents so they can find their dream home at the
right price.”
How Agents Can Better Support Buyers in the
Process Many recent home buyers feel a more personalized
approach from their agent and the data and technology they use is
essential to making home buying easier. According to the survey
results:
- Nearly half (46 percent) of recent home buyers surveyed said
more personal assistance would have been useful in their home
search. This was even more of a priority for millennials (64
percent).
- Nearly half (46 percent) of recent home buyers believed that an
online search feature with the ability to find homes similar to
those they are already interested in, would be most helpful,
followed by 21 percent who sought neighborhood and zip code
recommendations based on previous searches.
- Recent home buyers considered the most important benefits of
working with a real estate agent as two-fold: getting expert
recommendations for mortgage brokers, title companies, lawyers,
insurance agencies, as well as help in negotiating a better offer
(21 percent each).
“Buying a home isn’t a one-size-fits-all experience, it’s about
the right blend of technology and agent support that creates a
personalized experience relevant for each buyer,” said Dan Maloney,
Vice President, National Sales at Owners.com. “Buyers should look
for an agent who is the right fit for them – one who is plugged
into the local market, backed by smart data and technology, and can
help streamline the process while saving them money. That’s the key
to getting ahead in today’s market.”
Methodology The Owners.com® home buyer
study was completed online among a random sample of the general
U.S. population and an oversample of consumers in 10 regions –
Atlanta, Chicago, Dallas, Houston, Jacksonville, Miami, Orlando,
Philadelphia, San Antonio and Tampa. A total of 1,800 home buyers
(defined as those who purchased a home within the last four years)
participated. Interviewing was conducted by Echo Research LLC from
March 1- 19, 2019. The overall margin of error for this sample size
is +/- 2.3% at the 95 percent confidence level.
About Owners.com®Owners.com is a
customer-focused brokerage dedicated to delivering highly
personalized services. At the forefront of the real estate
revolution, Owners.com and its affiliates offer a complete real
estate solution that includes unique digital experiences, local
real estate expertise, and financing and closing services that
strive to anticipate and fulfill the dreams of home buyers and
sellers. For more information or to contact a local Owners.com real
estate agent, visit Owners.com or follow us on Facebook or
LinkedIn.
About Altisource®Altisource Portfolio Solutions
S.A. (NASDAQ: ASPS) is an integrated service provider and
marketplace for the real estate and mortgage industries. Combining
operational excellence with a suite of innovative services and
technologies, Altisource helps solve the demands of the
ever-changing markets we serve. Additional information is available
at altisource.com.
Source: Altisource Portfolio Solutions S.A.
Investor Contact:Michelle D. EstermanChief
Financial Officer770-612-7007 Michelle.Esterman@altisource.com |
Press Contact:Lindsey ShumwayManager,
Communications617-728-6735Lindsey.Shumway@owners.com |
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