Financial Stress Suggests Consumers are Making Impulsive Decisions in the Home Buying Process
When asked about concerns and issues when buying a home, leading financial aspects included:
- Fear of losing earnest money deposit (64 percent)
- Becoming "house poor" (61 percent)
- Bidding wars driving up the price (59 percent)
Despite these financial stressors, when potential home buyers were questioned about their willingness to go over budget in a competitive bid to get into a dream home:
- More than half (55 percent) said they were willing to go beyond their budget
- For those willing to stretch their dollars, on average, consumers stated they were willing to go
Given these monetary pressures, savvy consumers are considering real estate models that offer opportunities to cut costs in the transaction. When asked about their propensity to handle the home buying or selling process themselves if they would be charged a lower commission, 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 (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. These consumers should look for opportunities to work with a brokerage that offers a buyer rebate or sellers an opportunity to save on traditionally high agent commissions.
"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
The Owners.com® home buyer study was completed online among a random sample of the general
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 a superior experience and savings through right-sized commission structures, smart digital tools and personalized service from local agents. It's this formula that saves consumers thousands at closing. For more information, visit Owners.com, facebook.com/ownerscom and twitter.com/ownersdotcom.
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