Most Shoppers Today Are Serious About Buying a Home

According to the third annual Builder/American LIVES New Home Shopper Survey conducted this summer, about 50 percent of visitors to model homes are serious buyers and almost 67 percent prefer a new dwelling over an existing property. However, it is taking much longer to get buyers to commit to buying a new residence — mainly due to concerns about market fluctuations and the fact that there are so many bargain foreclosures and short sales on the market right now. About 50 percent of buyers are using real estate agents to weed through their options, and some builders have responded by offering more than 6 percent commissions to obtain referrals from agents. Additionally, builders are seeking to better understand buyers’ motivation to purchase a new home; and they are stressing the lifestyle that a new home can provide and the fact that interest rates and home prices are at their lowest levels in years. The survey also indicates that buyers are less interested in green homes, but as many as 40 percent would spend $5,000 or more on energy upgrades. | Read More