Most buyers would prefer to stay within their budget and live in a fixer-upper.
According to OpenDoor, 57% of homebuyers said they’d spend within their means for their home without going over, while 43% said they would overbid for a more updated property. However, finding that property has generally been a frustrating experience for buyers, as low inventory impacts their plans. Fifty-seven percent of buyers said they spend more time on real estate apps or looking at houses online than they do on social media.
Unsurprisingly, buyers said they are facing hurdles in their process. So much so, that 38% of potential buyers said they have paused their homebuying search. Nearly 40% cited uncertainty around COVID-19 for their pause, while 35% said the market is intimidating and 24% said there are simply not enough homes on the market. Yet, 22% said they have lost out on several bidding wars, perhaps leaving them burned out.
For those buyers still in the game, they also have concerns. Forty-one percent said they are worried about finding a home in their budget, 38% are worried about overpaying for a home and 37% are concerned about finding the right neighborhood. Even with record low mortgage rates, 30% are afraid they will go up before they can find their next home.
Regardless, buyers also have priorities on what they want in their home. Zillennials, defined as those born between 1993 and 1998, are most likely to want a large backyard, while baby boomers are seeking a modern kitchen. Millennials and Generation X are most likely to want environmentally-friendly features.
“I am finding that many buyers, especially younger buyers, are looking for houses that are already renovated without having to do a tremendous amount of work, along with really sticking to their budget and mental comfort zone of a monthly payment,” said PAR President Chris Raad. “Most buyers are as educated as they have ever been as to what their personal finances look like too. Many of my homebuyers have been open-minded at looking at different types of housing characteristics to see if the property is something they should at least consider without automatically ruling anything out.”