The main concern of first-time homebuyers might be affordability, but their expectations are higher than what they can afford, according to a survey by one of the countries largest franchise chain of real estate offices.
The online survey was conducted among 150 of their offices nationwide about trends real estate professionals are seeing with first-time homebuyers.
The survey showed that while nearly half of the respondents reported that affordability was the chief concern for first-time homebuyers, 81% said today’s first-time homebuyers also consider move-in conditions to be very important.
Only 7% are looking to purchase “fixer-upper” homes that they could buy at a lower price and renovate themselves.
“In the past, first-time homebuyers were willing to purchase older, more basic houses in an effort to save money and break into homeownership,” said the president and CEO of the franchise group. “Today, this group has greater home expectations because they have grown up more accustomed to their parents’ lifestyles.”
According to 29% of brokers surveyed, first-time homebuyers were more concerned with down payments 10 years ago, whilst 17% named that the biggest concern in today’s market. Only 4% of first-time homebuyers were worried about their credit scores in 1998, whilst 14% said it is a concern today.
“First-time homebuyers now have higher standards, placing an increased focus on the financial aspects of home ownership and at the same time, want a larger home they can live in right away.”
Additional results from the survey include:
- 71% noted that first-time buyers are looking for larger homes than they were 10 years ago.
- 41% noted that proximity to a job is the No. 1 attribute buyers are looking for in a home.
- 35% said investment is the No. 1 reason buyers are making their purchase.
- 46 % reported that buyers look at five to 10 homes, on average, before making a purchase.