Paperwork and selling previous home stressing PA homebuyers

This quarter, PAR’s Welcome Home survey revealed a change in what consumers are stressed about in the homebuyer process. Nearly 30 percent of the new Pennsylvania homebuyers surveyed said selling their previous homes and paperwork requirements were the most stressful part of the homebuying experience, an increase of 300 percent in just one year.

While this is a dramatic change from what new homebuyers were saying just a year ago in our survey, it shouldn’t be too surprising to many Realtors®. Over the last several months, we’ve continued to see inventory shrink and a faster-paced market. Those conditions are making homebuyers feel they must complete a lot of paperwork in a condensed amount of time and they feel pressured to sell their prior home in weeks rather than months, or even days rather than weeks.

Many of us are seeing continued low inventory and competitive buyers trying to secure a property, which is creating challenging circumstances within the market.

The market consequences of this rapid pace are further supported by Welcome Home’s finding that 27 percent of new homebuyers said they went from searching to closing in less than one month. A majority – 51 percent – indicated that their home purchase process took three months or less.

The research shows that 30 percent of buyers over the age of 50 took less than a month to complete their home search and purchase. The Welcome Home survey shows that many of those buyers are making cash purchases – 29 percent, which helps the transaction happen more quickly.

For the first time in the survey, we also saw the number of buyers under the age of 50 reporting that their home searching and buying took less than a month. Twenty-seven percent of the under age 50 group saw quick closings, compared to just 16 percent last quarter.

The findings emphasize the need for buyers to be prepared when they begin their home search. We encourage buyers to have their finances in order and to be pre-approved for their mortgage when they start the process. We need to help them understand and expect the demanding market that we’re experiencing. Then they’re prepared to make an offer when they find the house of their dreams.

For more information on the Welcome Home survey, visit PARealtor.org.