According to a report released by BMO Harris Bank, about half of people surveyed spent six months looking for a home and visited and average of 10 houses before making a final decision. The survey also found that people had conflicting emotions about the home buying process, whether they were first-time homebuyers or had purchased a home before. While nearly half of both groups were excited about the process, anxiety occurred in nearly a third of new home buyers and a quarter of repeat buyers.
Some of the biggest concerns for buyers were things that would take place after a purchase, with 79 percent concerned that they would discover something wrong with the home and 69 percent fearing that housing prices would drop. Still, people appear to be generally optimistic about discovering the perfect house, with more than half expecting to find their dream home in their price range and three-quarters believing they’ll know when they’ve found the house they want.
People appear to be trying to follow the suggestion that housing expenses should only take up about a third of a household’s income, and 13 percent of first-time buyers say that they are pre-approved for a loan. An additional 83 percent intend to go through pre-approval before attempting to purchase a home, something that is recommended by the Head of Mortgage Sales of BMO Harris Bank.
Ninety-eight percent of respondents say that pre-approval takes the stress of financing out of the buying process, and 87 percent feel that it gives them an idea of what they can spend.
When taken as a whole, the study demonstrates the importance of working with experienced and trusted real estate agents and lenders. By working with professionals who have your best interests in mind, many of the anxieties associated with buying a home — from getting an inspection to qualifying for a loan — will diminish.