What Are the Biggest Buyer Concerns?
In the summer of 2021 I conducted an online survey based on online commentary about real estate. The survey focused on three of the biggest buyer concerns about home purchases in America. Two concerns ranked higher than the third concern which is unfinanceable debt. As you can imagine, our focus was on fixing these issues so people would not be confused when they went to look for a new home. In this article I present the top three biggest buyer concerns and my recommendations for remedying the problems.
One of the biggest buyer concerns about home purchases is price. One survey showed that a majority of homeowners (at least 62%) believe that price is one of the major reasons that they are considering a real estate purchase. Interestingly, only 17% of homeowners think that price is not a factor when they are making a decision about a home. A closer look at the reasons that people give for selecting one price or another reveals some surprising data about where they really stand on the issue.
Most people believe that credit is one of the biggest buyer concerns. A surprising number of homeowners (at least 62%) believe that credit is what determines whether or not they will be able to afford a new house. Surprisingly, only 17% of survey respondents believe that credit is not a factor when they are making a decision about a home purchase. What is surprising is that many of the people who believe that credit is a major factor in home purchasing actually have low credit scores and are considered subprime borrowers. Those borrowers are labeled as sub-prime by lenders because of their low FICO scores.
Another big concern about home prices is homeowners’ ability to make mortgage payments. When asked if they thought that they could afford their current mortgage payment, most people (at least 62%) responded that they could not afford their current mortgage payment. Nearly all (95%) of those people were considered “over-waters.” The majority of these homeowners were underwater on their homes. Just because a homeowner has a low mortgage payment does not mean that they will be able to make the required monthly mortgage payments. This is because the majority of mortgage payments in Florida are set by local real estate market conditions.
One of the biggest factors contributing to high home prices is the actual value of a home. When home prices rise, homeowners must make more monthly mortgage payments to cover the increased cost of the property. If the cost of the property goes up, the monthly mortgage payments also go up, making it difficult for a homeowner to keep up with the increased cost.
Another of the biggest buyer concerns is the rising cost of property taxes. In order to keep property taxes affordable, homeowners must do what they can to keep property taxes as low as possible. However, there are limits to this strategy. If a tax rate goes up, for example, the homeowner may be required to contribute additional funds to their homeowners insurance policy in order to offset the new increase.
Homeowners who own their homes but do not want to increase their mortgage payments by refinancing are concerned about interest rates. The first thing that a potential borrower should do before looking for a mortgage is to understand what an interest rate is. They should find a mortgage that does not include an adjustable interest rate or AMI.
One of the biggest concerns among homeowners is whether their neighborhoods are being built properly. When a neighborhood is built properly, it tends to increase the overall value of the home. However, if a neighborhood is not built properly, it may decrease the value of the home. There are two ways to build a neighborhood. They can be built through a home builder or the homeowner themselves.