Only one-third of homebuyers prefer in-person and one-on-one counseling
Three-fourths of prospective first-time homebuyers have said that they prefer internet-based education and counseling, according to a new study from Abt Associates.
Abt gathered data from the US Department of Housing and Urban Development’s First-Time Homebuyer Education and Counseling Demonstration to predict homebuyers’ participation in free education and counseling services.
The research found that about three-fourths of 6,000 participants who were offered their choice of service mode expressed a preference for remote over in-person services. Among those offered in-person services, about one-fourth took up that offer. In contrast, approximately two-thirds of those who were offered remote services accepted the offer.
Moreover, people who opt for remote services were more likely to participate if they scored better on a mortgage literacy quiz or had a baseline credit score of 740 or higher. Meanwhile, those identified as good in math were more engaged with in-person services.
Race and ethnicity, age, marital status, and household size did not play a significant role in predicting the participation of homebuyers in federal-funded services, according to Abt.
“The findings in this analysis provide lessons for how agencies market homebuyer education and counseling services to prospective clients,” said Shawn Moulton, one of the authors of the study. “This research sample comes by way of lender referrals and is not typical of the clientele that federal agencies target and serve, but the sample still serves as a rich and diverse source of useful information.”
