What are the biggest home-buying concerns Buyers have?
It’s one of the toughest times to be a Buyer right now. In fact, 64% of surveyed Buyers say it’s a bad time to buy. They need agents like you more than ever to help them navigate the myriad challenges they face. Today, we’ll look at some of the biggest home-buying concerns Buyers have. We’ll also provide some ideas for how you can help them address these challenges.
1. Affordability is still the biggest concern for Buyers
It’s no secret that affordability is one of the biggest home-buying concerns for Buyers. Over the last 12 months, home prices have increased by over 15%. Pandemic lockdowns, stagnant wages, and college debt compound that problem even more when you consider that millennials are the biggest share of Buyers currently.
And even when Buyers find a house they can afford, they’re often running into the buzz saw of competing against all-cash Buyers. Since most Buyers simply can’t afford to pay all cash, many Buyers feel like they’re facing insurmountable disadvantages.
Is there anything agents can do?
Affordability isn’t a home-buying concern that any single agent can solve alone. However, there are a couple of things you can consider to help your Buyers deal with affordability concerns.
First, supply your Buyers with facts, because emotions are running hot and can warp reality for a Buyer. According to Attom, affordability is truly a crisis, with single-family homes becoming less affordable compared to historical averages in 61% of counties nationwide.
However, the same report noted that based on the national average wage of $63,986, the cost of a mortgage, home insurance, and property taxes would consume just over 25% of a Buyer’s wages. That’s still under the 28% most lenders prefer.
In short, there’s no doubt housing is less affordable. But even now, it can still be in range for average wage earners. Sharing this information might help Buyers keep trying to move forward instead of waiting.
Explain the market
Second, explain the market to your Buyers. While interest rates aren’t as low as they had been, they’re still fairly low. Inventory is tight, but it’s likely to continue to stay tight. This likely means that affordability is only going to get worse. This doesn’t mean you should pressure Buyers to make a decision. But you should consider explaining the consequences of waiting in light of their home-buying concerns.
2. The cost of maintenance and other expenses are higher than expected
We’ve discussed this issue in a previous post. The Spark Notes version is that nearly two-thirds of millennial Buyers regret something about their home purchase, with maintenance and other costs leading the pack for specific regrets.
This is more an issue for Buyers who’ve successfully won their home in general. However, you can help your clients get out in front of this home-buying concern by attaching a Home Warranty Service Agreement (i.e., home warranty) from 2-10 Home Buyers Warranty (2-10 HBW).
A home warranty can help your Buyers tackle some of the other costs of home ownership that they may regret. For example, a refrigerator breakdown can cost hundreds to thousands of dollars to address out of pocket. A home warranty can help reduce those upfront costs for your Buyers and make the overall cost of home ownership more manageable.
Additionally, supplying or suggesting a home warranty can come with perks to help your Buyers even more. For instance, the Lock & Hardware Program can reimburse Buyers who replace their locks within 45 days of closing, up to $100. And the Appliance Discount Program can help homeowners save on GE and Whirlpool brand appliances.
Finally, bringing a home warranty to the table can help your Buyers stand out in a crowded market.
2-10 HBW offers comprehensive systems and appliances home warranties to help protect your clients from unexpected repair and replacement costs. Contact us to learn more.