Start at the beginning to attract more buyers

A marketing message that incorporates financial resources or talks about financing a home purchase could help motivate some potential homebuyers to move forward.

A nationwide survey found that half of U.S. consumers say they lack the financial education needed to purchase a home. What’s more, 44 percent of consumers say they find the home-buying process scary or intimidating.

Ninety-two percent of consumers say that owning is a better long-term financial decision than renting – but only 30 percent know how to start buying a home, according to the survey conducted by Sente Mortgage, an independent mortgage bank based in Austin, Texas.

Younger generations particularly lack enough financial knowledge to move forward. More than 30 percent of millennials say they don’t know the mortgage amount they could afford, and 25 percent don’t understand the long-term financial impact of homeownership.

“The home buying process is complex, and it’s clear that for many of today’s consumers, gaps in financial education are leading to some risky purchase behaviors,” says Tom Rhodes, CEO of Sente Mortgage. “Unfortunately, many of the most valuable resources available to buyers go grossly under-utilized, but with the right guidance and support, owning a home can be one of the biggest contributing factors to long-term financial success.”

Many consumers admit that they don’t spend enough time shopping for a mortgage: 11 percent say they were more likely to seek advice and recommendations when planning a vacation than when buying a home; and consumers were twice as likely to compare options when buying a TV than when selecting a mortgage, Sente Mortgage’s study found.

But many buyers say they trust a real estate agent to guide them accordingly: 63 percent say they could not navigate the financial side of the home buying process alone, and 51 percent say they entrust the selection of a lender to their real estate agent.

Source: Florida Realtors