I remember when I first started in real estate in 1991, someone told me that buyers would, on the average spend $15,000 more than they anticipated on a home purchase. Back then, I thought that was a lot of money to extend your budget for house buying, but I have seen it happen more and more. We usually have a picture in our mind of what we want, including price, and that can easily adjust and change as we start our search. The more flexible you can be when looking to buy a home, the more choices you will have. There are ‘needs’ in buying a home, that shouldn’t be compromised (for instance, not spending more than your maximum qualified price, number of bedrooms, location, garage) but the’wants’ (ensuite, fireplace, certain flooring or kitchen, etc) can be changed later.
In this recent study, although 80% of home buyers consider price to be the most important consideration of a purchase, 41% were willing to go above budget by an average of $25K for the perfect home.
There are many factors to consider when buying a home. And, although 80 percent of home buyers consider price to be the most important consideration of a home purchase, 41 percent of home buyers also are willing to go above budget by an average of $25,000 for the perfect home.
1,794 homeowners were surveyed between February 28 and March 6, 2020 who had all purchased a home within the last five years to learn what they desired most in a home. Survey respondents were an average of 38 years old, and 63 percent were married, 22 percent were single, 8 percent were engaged, 6 percent were divorced and 1 percent were widowed.
After home price, location, neighborhood, the size of the home, and the home’s layout were the most important factors in making the decision to buy.
Buyers spend an average of 4 months conducting a home search and view an average of 19 properties before deciding on the one. Remember this includes the online searching and viewing.
Most home buyers use a real estate agent to help them with their home search, with 51 percent opting to enlist an agent’s aid. Thirty-eight percent of home buyers shop for their home online while 11 percent find their home just by passing it on the street.
In terms of home features, buyers are most concerned with the home’s layout, with 71 percent of survey respondents reporting that layout was the most important home feature. Storage space (59 percent of respondents), an outdoor living space (57 percent), a large kitchen (53 percent) and having an updated kitchen (53 percent) were also important features for home buyers.
While most of us would like to buy our perfect home, it’s not always feasible. One in three survey respondents reported compromising on some part of their home purchase, usually because of budgetary restrictions.
Most often, home buyers opted to compromise on layout or the age of the home or repairs needed, with 29 percent of survey respondents compromising on these features. However, 26 percent of buyers compromised on home size, 23 percent compromised on having an updated kitchen, and 19 percent compromised on having updated bathrooms.
Out of the one in three survey respondents who reported backing out of buying a home, most did so because something was found during the home inspection (34 percent) or because they changed their mind about the home (29 percent).
Over half of home buyers stated that the home’s age or necessary repairs were the biggest deal breakers, while others said home size (40 percent), neighborhood (37 percent) and school system (20 percent) were their biggest deal breakers when considering whether or not to buy a home.