Buying a home in a competitive market can be a stressful experience, often most similar to the stress of planning a wedding or being fired, and a new Zillow survey shows that half of home-buyers say the process left them in tears at least once.
And it’s something of a generational thing: Gen Zers and Millennials – many of whom are first-time homebuyers – far more likely to cry at least once during their home-buying journey. More than 65 percent of Gen Z buyers and 61 percent of Millennial buyers cried at least once when going through the process of purchasing their home.
“Buying a home is not like buying any other asset; it’s deeply personal and it’s emotional,” said Zillow home-trends expert Amanda Pendleton. “These survey results find, even when they are ultimately successful, a large share of buyers in today’s competitive market experience heartache and stress.”
The stress of buying is experienced differently among racial groups, with Latin buyers (68%) leading all comers – far above white buyers (48%). Black buyers were almost evenly split at 51 percent crying, 49 percent not.
Although the market is constantly evolving, it has over the past year strongly favored sellers, with homes receiving multiple offers and oftentimes selling for over list price.
Six in 10 sellers in April reported at least two offers on their home, and nearly half of homes sold went for over asking price, up from 37 percent a year before.
Additionally, some buyers planning to finance their purchase with a home loan are losing out to others who are able to pay entirely in cash, which is seen as a more attractive offer to a seller, since they don’t need to worry about the sale falling through in the financing stage. According to Zillow’s survey, nearly 30 percent of recent buyers said they lost to an all-cash buyer at least once.
There are about 23 percent fewer homes on the market than a year ago, which increases competition and leads many buyers to feel the need to waive crucial contingencies in order to stand out. Zillow’s survey found that nearly 40 percent of buyers waived a contingency, such as financing or inspection.