Recent buyers find home hunting most challenging – study

Recent home buyers said searching for the right home was the most challenging factor in the home-buying process, according to research from Owners.com.

The study surveyed 1,800 consumers who recently purchased a home. Overall, it found that 38% of recent home buyers are spending over their budget, and 46% want more personalized support throughout the home-buying process.

Nearly half of recent home buyers nationwide (49%) said that finding the right home was the most challenging.

Meanwhile, searching for the right home was less challenging for millennials (41%) compared to their Gen-Xers (52%) and baby boomer (56%). However, millennials (21%) had more issues saving for a home than Gen-Xers (15%), and baby boomers (6%).

On average, one third (38%) of recent home buyers in the US exceeded their budget by $20,000, up from $16,510 a year ago.

Approximately 39% of Gen-Xers went over their budget by $35,000; 27% of baby boomers spent $25,000 more; and 46% of millennials surpassed their $12,000 budget on average this year.

When asked what they anticipate as the largest issues facing home buyers in 2019, recent home buyers said: affordability (41%), rising interest rates (25%) buyer competition (12%), finding the right home (11%), and housing supply (10%).

“It’s not surprising that recent home buyers find it challenging to find the right home: many markets are still seller’s markets, and buyers often need to decide very quickly whether they should outbid the competition,” said Dario Cardile, vice president of growth at Owners.com. “When possible, home buyers should work with brokerages that can capture their preferences effectively, and help them find their best match homes quickly. The key is providing buyers with the right information, a customized approach and the guidance of smart agents so they can find their dream home at the right price.”

Almost half (46%) of the surveyed recent buyers said more personal assistance would have been useful in the home search. Even more millennials (64%) found this a priority. In addition, 46% of recent home buyers preferred an online search feature with the ability to find homes

similar to those they are already interested, while 21% looked for neighborhood and zip code recommendations based on past searches.

“Buying a home isn’t a one-size-fits-all experience, it’s about the right blend of technology and agent support that creates a personalized experience relevant for each buyer,” said Dan Maloney, vice president of national sales at Owners.com. “Buyers should look for an agent who is the right fit for them – one who is plugged into the local market, backed by smart data and technology, and can help streamline the process while saving them money. That’s the key to getting ahead in today’s market.”