BMO Psychology Of House Hunting: It Really Is Love At First Site
It was love at first site.
The minute you saw the granite countertops and the cherry wood floors, you were sold. Despite telling yourself that you’ll wait until you’ve seen all of the listings before making a decision, when you saw the home of your dreams, you fell in love.
Don’t worry, you’re not alone.
80% of people know if a house is right for them as soon as they walk through the front door. According to a study published by BMO, people know instantly if a house is a place they could potentially call home. Home sellers take note, first impressions are very important when selling your home.
Some of the highlights from the study include:
- Eighty per cent of prospective buyers know if a home is right for them as soon as they step inside
- Canadian homeowners spent an average of five months house hunting and visited ten homes before making the decision to buy
- However, 68 per cent of likely buyers are willing to settle for a home that’s less than ‘perfect’
- One-third (33 per cent) feel rushed into making a purchase – a number that rises to 39 per cent among first-time buyers
- The biggest worry on the minds of home buyers is finding something wrong with the home after the purchase (71 per cent), followed by a post-purchase drop in prices (55 per cent)
Why do people buy?
People have different motivations when buying a home. Prospective home buyers may fall in love with a house, but other market driven factors also play a role:
- 44 per cent of current homeowners say they bought their home because they felt it was a good investment
- 37 per cent stated they were motivated to buy because they felt the time was right to get into the market
- 23 per cent bought because they wanted to move to a new neighbourhood
- 18 per cent bought because their family was expanding
Buying a Home is a Roller Coaster Ride
People experience a wide range of emotions when buying a home. Laura Parsons of BMO says “Buying a home is one of the biggest investments Canadians will make in their lifetime, so it’s wise to take time and get the guidance of a professional to help ease stress and mitigate any financial pitfalls that may arise from making an emotional decision”. So what did the study find?
- Excitement (48 per cent), cautiousness (41 per cent) and optimism (31 per cent) are the top emotions identified
- One-quarter (25 per cent) say the process is stressful, and 21 per cent say it makes them feel anxious
- First-time buyers are more likely than the average home buyer to be stressed (30 per cent versus 25 per cent) and anxious (25 per cent versus 21 per cent) about the home buying process, while less likely to feel optimistic (23 per cent versus 31 per cent)
Ms. Parsons added that getting preapproved financing, choosing a fixed rate and stress-testing mortgage payments in advance of buying a home can provide peace of mind and help home buyers become mortgage-free sooner.