Financing Continues to Be Top Stressor for Pennsylvania Homebuyers

What’s stressing out new homebuyers? Financing and selling a previous home are their top two stressors, according to PAR’s recent Welcome Home study. It’s not surprising, given the changing market, that homebuyers who identify financing as their primary stress has increased 40% in the past two years. And buyers who said having to sell their previous home was their primary worry increased 50% since 2017.

Are you taking the time to outline the financial process when working with buyers? Do you prepare them for the information they need to apply for a mortgage? Expanding your explanations and providing guidance may help alleviate some of their anxiety about the process. Many markets around the commonwealth are continuing to experience very tight inventory, so we’re seeing the homebuying process move very quickly. As Realtors®, we can educate buyers about the process.

Is there limited inventory available? The house they want may have multiple offers. Explaining how that process progresses helps so they know what to expect. They may need to be ready to make a quick decision if they find the house that’s perfect for them. With that said, the compressed time frame for organizing their finances and preparing to close on their home can be more worrisome to many buyers.  It helps if we go through the steps with them and explain to them the challenges of today’s market and the best course of action.

In the survey of the second half of 2019, we saw a new stress. Homebuyers were more than twice as likely to say that physical issues with the property that they bought were the largest source of stress in their homebuying experience compared to previous surveys.

The survey revealed that more buyers mentioned that they purchased a home that would need renovations, which would account for the increased anxiety about physical issues with the property. Renovating properties can bring additional challenges. Other buyers reported they bought a home that passed inspections, but they found after closing that the home didn’t totally meet their needs, so repairs or improvements were required.

The Welcome Home study showed that Pennsylvania homebuyers continue to have a quick homebuying process. Nearly half found their new home and closed in less than 90 days; 18% said they found their home and closed in less than one month, while 31% selected a home and closed in one to three months.

The survey confirmed what experienced Realtors® know. Location is key. Homebuyers surveyed said location was the primary feature that made the decide on the home they purchased. Thirty-seven percent said location was the deciding factor when choosing their home. Interior features were a distant second, with 10% citing this as the primary reason they chose their home.