ShelterZoom, a blockchain-powered real estate platform, surveyed more than 1,000 U.S. consumers to determine the leading reasons for dissatisfaction. Real estate commissions top the list.<\/p>\n
<\/p>\n
Perhaps the survey\u2019s least surprising finding was the widespread unhappiness with the home-buying process, said Shelterzoom cofounder Allen Alishahi. When asked what is the biggest thing wrong with the process, respondents hit on pain points that anyone who has ever purchased a home has likely experienced: there\u2019s too much paperwork (39%); the process takes too long (36.6%); it\u2019s too confusing (28.2%); there are too many people involved (21.2%), and giving away too much information (17.3%).<\/p>\n
\u201cThat figure is also not surprising because in real estate, as in life, it\u2019s all about perspective,\u201d said Alishahi.<\/p>\n
When asked about the specific concerns about the home buying process, respondents\u2019 top grievance was their belief that commissions are too high (42.7%). That was followed by a lack of transparency (33%); conflicts of interest (33%); and lack of communication (28.6%).<\/p>\n
\u201cI\u2019m not that surprised by these findings, as they have been concerns for as long as I\u2019ve been in the business,\u201d said Alishahi. \u201cBut I will add that so much depends on the real estate professional you\u2019re dealing with. As with any profession, many are fantastic and truly take the customer\u2019s concerns seriously and do whatever they can to alleviate them.\u201d<\/p>\n
When asked about the length of time the home buying process takes, the respondents had some strong opinions.<\/p>\n
In order of magnitude:
\u25cf It takes a long time to get a mortgage approved: 43.8%
\u25cf The contracts take a long time to sign and complete: 35.7%
\u25cf There are too many people involved: 33.8%
\u25cf Buyers purposefully delay the sale so they can move\/close on another house: 25.1%
\u25cf The process is too manual: 20.8%<\/p>\n
Ideas for making the home buying process easier
Most industry observers agree that there\u2019s room for improvement of the homebuying process. Three ideas, in particular, surfaced with more than 40% of respondents when asked what, if anything, would improve the process:<\/p>\n
\u25cf The ability to ensure that my offer is presented to the seller and track every step of my offer: 48.1%
\u25cf The ability to see how many offers are being made on the home: 46.1%
\u25cf The ability to be notified every time a change is made by the seller, broker or agent: 42.8%<\/p>\n
Alishahi notes that these desires line up with Shelterzoom\u2019s platform functionality.<\/p>\n
Most respondents said the home selling process is so unpleasant that they would leave money on the table to avoid as much of it as possible. When asked if they would be willing to lower the price of their home if it meant not having to deal with the costs associated with home buying (agent commissions, lawyers, home repairs, closing costs, and other hurdles), more than three-quarters (76.2%) of respondents said \u201cyes.\u201d<\/p>\n
Respondents were asked to weigh in on listing price. When it comes to listings \u2013 specifically, how long consumers would be willing to wait to lower the price of their home if it\u2019s not selling \u2013 the findings played out like this:
\u25cf One week: 3.5%
\u25cf One month: 19.7%
\u25cf Three months: 33.2%
\u25cf Five months: 17%
\u25cf 12 months: 9.4%
\u25cf More than 12 months: 5%
\u25cf Would not lower the price of my home: 12.3%<\/p>\n
Alishahi notes that these pain points are reasons why the iBuyer model is gaining traction. The seller typically receives cash quickly and has more control over closing details. But it might not be worth the tradeoff, depending on the homeowner’s situation.<\/p>\n
Adding to the challenges for consumers looking to buy or sell a home is the industry itself, said Alishahi. \u201cWhile massive in scale (upwards of $200+ trillion globally), the industry has been a laggard with regard to using modern technology. That is changing, albeit slowly\u2026. It is changing to reflect the demands of consumers and real estate professionals alike.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Commissions are Leading Consumer Complaint of Homebuying Process ShelterZoom, a blockchain-powered real estate platform, surveyed more than 1,000 U.S. consumers to determine the leading reasons for dissatisfaction. Real estate commissions top the list.<\/p>\n","protected":false},"author":15802,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[],"class_list":["post-717","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\n