Wouldn't it be neat to speak with people who had recently bought a home to get tips on what they did right, and what they did wrong so you could learn from their mistakes and success? Wouldn't it be great to ask them what they would do differently if they were buying a home today?
Well lucky for you, Chase Bank just released a survey of 807 homebuyers who shared their thoughts on a recent home purchase.
Most of the mistakes of homebuyers in this survey were easily corrected had they first read our "Home Buying For Smart People" e-series, but the survey makes for a good check list of things you'll want to remember before you buy a home.
Chase Survey Online
The survey was conducted by Research Now, an independent research company. 807 people who had purchased a home within the past 2 years were interviewed in March of 2014. Here are some of the key findings:
- 80% of buyers considered their home move-in ready at the time of the purchase, yet 76 percent have done or are planning to do renovations to their home in the near-term
- 56% wish they were armed with more knowledge about the financial aspects of purchasing a home
- 39% said that they would buy a different-size or different-priced home or in a different neighborhood, knowing what they know now
- 34% said it cost more than expected to maintain the home that they purchased
- 22% wish they had known more about the ins and outs of closing on the house
- 19% felt they did not know enough about making the offer and negotiating
- 15% wished they had been better prepared for financing their purchase
The survey seems to have uncovered a lot of regret relating to preparedness prior to the home buying experience.
Preparing To Buy A Home
In order to understand why these people ended up unhappy, let's take a look at something the report did not address ... their preparation process.
A recent report published by the National Association of Realtors based upon a survey of homebuyers found that 74% used the first real estate agent with whom they spoke. This is crazy!
Everybody knows somebody with a real estate license, and it seems like one is always in the room no matter where you find yourself. But did you know ...
- The majority of real estate agents are part timers who are not nearly as educated or trained as full time real estate agents
- More than half of the real estate agents will sell fewer than 2 homes this year ... meaning they do not have the same grasp of current trends, values, and standards in the current housing market (yes, when you buy a home, there are market conditions that are greatly influenced by supply and demand, and knowledgeable buyer agents can save you money and get you to the right area for your life style).
- Most buyers look at a list of homes for sale and end up working with the agent associated with one of the homes on the list
- The home seller typically pays the real estate commission so the prudent buyer should make sure she or he is armed with the best real estate buyer's agent available. Why work with somebody who is not an expert at market trends, negotiating, financing, and property selection?
The Real Estate Buyer's Agent
Home sellers have had their own contracted listing agent for longer than we can measure, yet the majority of buyers work with the first agent they bump into. Why do you think new and otherwise un-employed real estate agents do open houses?
The statistics are very clear that open houses do not sell homes, but they are a great way for weaker agents to meet you ... and hope that they get that "74% chance" of getting your business.
Do you really want to work with a weaker agent?
Why not hire a real estate buyer's agent? Remember, the Seller will pick up the tab, so why not take advantage of working with a better agent? I have written numerous articles on how to find and hire a great buyer's agent, so start the home-buying process off with first getting the right help.
If you would like to know more about buying a home in Tallahassee, just drop me a note and we can schedule a time to review your needs and wants, and show you how to avoid the biggest mistakes of homebuyers.
Joe Manausa, MBA is a 27 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.