More than 65% of Gen Z buyers and 61% of millennial buyers
report crying at least once during their home-buying journey,
according to a new Zillow survey
SEATTLE, June 2, 2022
/PRNewswire/ -- Buying a home in today's competitive market can be
a stressful experience, often most similar to the stress of
planning a wedding or being fired. A new Zillow®
survey1 shows 50% of home buyers say the process
left them in tears, with Gen Zers and millennials — many of whom
are first-time home buyers – far more likely to cry at least once
during their home-buying journey. More than 65% of Gen Z buyers and
61% of millennial buyers cried at least once when going through the
process of purchasing their home.
It's no wonder. In today's low-inventory market, homes are
receiving multiple offers and oftentimes selling for over list
price; 60% of sellers report getting at least two offers on their
home2, and nearly half of all homes sold in
the U.S. in April 2022 went for over
the asking price, up from 37% a year ago.
Additionally, some buyers planning to finance their purchase
with a home loan are losing out to others who are able to pay
entirely in cash, which is seen as a more attractive offer to a
seller, since they don't need to worry about the sale falling
through in the financing stage. According to Zillow's survey,
nearly 30% of recent buyers said they lost to an all-cash buyer at
least once.
"Buying a home is not like buying any other asset; it's deeply
personal and it's emotional," said Zillow home trends expert
Amanda Pendleton. "When you make an
offer on a home, you have likely envisioned your life there. If you
lose out on that home to a stronger offer, it can feel like losing
a future you have already started planning. These survey results
find, even when they are ultimately successful, a large share of
buyers in today's competitive market experience heartache and
stress."
Nearly 90% of recent buyers Zillow surveyed said at least one
aspect of the home-buying process was stressful.
Buying a home can be challenging for many reasons. Among those
buyers surveyed, 62% were stressed about being able to find a home
within their budget, 61% were stressed about not having enough
homes to choose from, and 58% were stressed about finding a home in
their preferred neighborhood.
The stress of buying is experienced differently among racial
groups, as well. Latinx buyers were far more likely to report
crying at least once (68%) compared to Black (51%) and white (48%)
buyers. And 26% of buyers of color reported "losing out" on a home
because of financing falling through, compared to 18% of white
buyers. Zillow research has shown that Black mortgage applicants
are denied 84% more often than white borrowers.
There are about 23% fewer homes on the market than a year ago,
which increases competition and leads many buyers to feel the need
to waive crucial contingencies in order to stand out. Zillow's
survey found that nearly 40% of buyers waived a contingency, such
as their financing or inspection contingency, on at least one of
their offers.
Even in this fast-paced market, there are still steps buyers can
take to help relieve the stress of the process:
- Finance first – Before browsing listings, buyers should
start by understanding what they can afford by leveraging Zillow's
home loans page. This is where buyers can find a mortgage
calculator, compare lenders and rates, and get pre-approval for a
mortgage, allowing them to act fast when they find the
one.
- Hire a top-rated agent – By using Zillow's agent finder
tool, buyers can read reviews of top-rated real estate agents in
their area. Hiring an agent with the right skills and experience
can help buyers win in a multiple-offer situation or a tough
negotiation.
- Use tech for a speed advantage – Buyers can quickly
compare home features side by side using Zillow's Homes to Compare
tool, which allows shoppers to compare as many as five homes on
more than 70 key listing details. Buyers can also save searches and
update their email preferences to receive alerts about new for-sale
listings the minute they hit the market.
For more tips from Zillow on how to stand out as a buyer in a
competitive market, visit the Zillow blog here.
About Zillow Group
Zillow Group, Inc. (NASDAQ: Z and ZG) is reimagining real estate
to make it easier to unlock life's next chapter. As the most
visited real estate website in the United
States, Zillow® and its affiliates offer customers an
on-demand experience for selling, buying, renting or financing with
transparency and ease.
Zillow Group's affiliates and subsidiaries include Zillow®,
Zillow Premier Agent®, Zillow Home Loans™, Zillow Closing
Services™, Trulia®, Out East®, ShowingTime®, Bridge Interactive®,
dotloop®, StreetEasy® and HotPads®. Zillow Home Loans, LLC is an
Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org).
1 Zillow Group Population Science
conducted a nationally representative survey of more than 2,000
people who purchased a home in the past two years or who intend to
buy a home in the next 12 months. The study was fielded from
February through April 2022.
2 According to Zillow's 2021 Consumer
Housing Trends Report, 60% of home sellers surveyed in 2021
reported getting at least two offers on their home.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/half-of-americans-cry-at-least-once-while-buying-a-home-301559883.html
SOURCE Zillow