Posts (RSS)Younger Homebuyers Doing More Foreclosed Home Search
More and more renters and younger first-time homebuyers are doing foreclosed home search for their home purchases. There are also more of them who prefer buying foreclosed homes than older homebuyers or current homeowners, based on a study released by RealtyTrac and Trulia.com.
The online survey conducted by Harris Interactive also found that over two-thirds of renters are considering buying a foreclosure home, compared to 50 percent of homeowners.
First-time homebuyers, who are oftentimes younger renters, prefer foreclosure properties because of the affordability factor. Bargain prices can still be found among foreclosures.
The survey, which involved 2,397 adults interviewed this May, also found that two-thirds of adults in the 18-44 age group would consider purchasing from foreclosures while only 38 percent of adults aged 55 and older would consider buying from foreclosures. A little over 50 percent of adults aged 45 to 54 would consider choosing a home from bank owned foreclosed properties.
The survey also examined changes in attitudes towards foreclosures in the past several months. Almost 85 percent of adult respondents know the risks and disadvantages of buying a house from a foreclosed home search, an increase from the 80 percent level in November. Among the disadvantages that they cited were hidden costs, risks inherent in buying from a foreclosed home search and concerns that the foreclosed property would easily lose value.
The respondents are particularly concerned about hidden costs, especially expensive repairs of major systems of the house that they were unable to detect before completing the purchase process.
Nevertheless, there are more respondents who are more open to the idea of finding a home from a foreclosed home search, as they are realizing that more and more foreclosure properties are being added to inventories of new homes, existing homes and foreclosed homes for sale.
The study also found that about three-fourths of those interviewed are somewhat confident about the positive impact of President Obama’s loan refinancing and modification programs.
According to the survey results, about 55 percent of interviewees said they are somewhat likely to purchase a home from a foreclosed home search, an increase from the 47 percent level in the November survey.
Lastly, the survey found that there are also more prospective homebuyers who expect a big discount when buying a house from foreclosed home search. Almost 40 percent of prospective buyers expect to spend 50 percent less for a repossessed property, an increase from the 31 percent who expected big discounts in the November survey.