Making the big jump - What buyers want when searching for a home
There has been a lot of chatter lately about investors dominating the property market, but what is really happening in the market? And what are the different buyer segments looking for when they set out to buy?
Blogger: Petra Sprekos, general manager, realestateVIEW.com.au
According to a recent realestateview.com.au survey, the great Australian dream of owning your own home is alive and kicking. Of the buyers surveyed, 72 per cent of people own their own home while 28 per cent rent but are looking to buy in the near future.
With the ‘boom’ now in full swing thanks to historic low interest rates, there’s been talk that savvy investors are pushing first home buyers out of the market. The truth is buying a property is one of the biggest life decisions Australians will ever make, so it’s no surprise that the more experienced buyers are dominating the field.
However whether you’re a first-timer, next home buyer or investor, your decision is ultimately based on sound research and information. We wanted to get under the skin of what is and isn’t important to buyers when they are preparing to buy a property. Buyers were asked to rank their top preparation rituals as well as the top pieces of information they want access to when researching. Here’s what we found…
We only trust our own opinion when it comes to property
These days we can’t make a decision on anything without first checking reviews on the internet or sourcing feedback via our social media networks – whether it’s something as simple as where to eat or something more significant such as what car to buy. However it’s not the case when it comes to buying a home, one of the biggest decisions we’ll make in our lives; instead of relying on peer reviews and feedback, the top two ways buyers prepare to purchase a property is to conduct their own research on everything possible (from finance and local amenities to house prices) and attend open inspections – suggesting that Australians trust first person experience over the opinion of others.
In fact, talking to families and friends was last on the top 5 list of information sought for all but the first homebuyer, who understandably might feel uncertain about their first purchase.
Top 5 preparation rituals when buying a property
|
Overall |
First home buyer |
Next home buyer (upsizing & downsizing) |
Investor (seasoned and first-time) |
|
1. Researching everything possible to inform your purchase decision, from finance and local amenities to house prices
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2. Attending open inspections to get a feel for the market 3. Efficiency in communication and research – doing everything online if possible, rather than over the phone in person 4. Ensuring all important information is organised and compiled into a spreadsheet 5. Talking to friends and family to gauge their opinions and experience with buying and/or the market |
1. Researching everything possible to inform your purchase decision, from finance and local amenities to house prices 2. Attending open inspections to get a feel for the market 3. Efficiency in communication and research – doing everything online if possible, rather than over the phone in person 4. Talking to friends and family to gauge their opinions and experience with buying and/or the market 5. Ensuring all important information is organised and compiled into a spreadsheet |
1. Researching everything possible to inform your purchase decision, from finance and local amenities to house prices 2. Attending open inspections to get a feel for the market 3. Efficiency in communication and research – doing everything online if possible, rather than over the phone in person 4. Ensuring all important information is organised and compiled into a spreadsheet 5. Talking to friends and family to gauge their opinions and experience with buying and/or the market |
1. Researching everything possible to inform your purchase decision, from finance and local amenities to house prices 2. Attending open inspections to get a feel for the market 3. Efficiency in communication and research – doing everything online if possible, rather than over the phone in person 4. Ensuring all important information is organised and compiled into a spreadsheet 5. Talking to friends and family to gauge their opinions and experience with buying and/or the market |
Data is king
When it comes to the information buyers want access to the most while searching for a property, recent sales, auction results and median house prices dominated the top 5 list of information researched. Unsurprisingly, the seasoned investor also valued historical sales. The only exception to the case was the first home buyer, who prioritised legal information and home loans over recent sales, and was also after tips and advice for their first time?
"Safety First" is "Safety Always"
Interestingly overall crime statistics was ranked number three on the top 5 information needs of buyers. However safety was more of a concern for homebuyers than investors - crime statistics also moved up in importance for older buyers (ranking no 5 for first home buyers, no 3 for next home buyers upsizing, and no 2 for next home buyers downsizing) but didn’t make the cut for both first time and seasoned investors.
Have a look at our tables below to get a full breakdown on how the different buyer types prepare and what information they are seeking when house hunting.
Top 5 pieces of information buyers want access to when researching a property
|
Overall |
First home buyer |
Next home buyer - upsizing |
Next home buyer - downsizing |
Investor – first time |
Investor – seasoned |
|
1. Recent sales 2. Recent auction sales 3. Crime statistics 4. Public transport links 5. Median house prices |
1. Legal information about buying/selling a house 2. Home loans 3. Recent sales 4. Tips and advice for buying 5. Crime statistics |
1. Recent sales 2. Recent auction results 3. Crime statistics 4. Median house prices 5. Public transport links
|
1. Recent sales 2. Crime statistics 3. Median house prices 4. Recent auction results 5. Legal information about buying/selling a house
|
1. Recent sales 2. Recent auction results 3. Public transport links 4. Median house prices 5. Legal information about buying/selling a house
|
1. Recent sales 2. Recent auction results 3. Public transport links 4. Historical sales 5. Median house prices
|
About Petra Sprekos
Petra Sprekos is the general manager of realestateVIEW.com.au. Under Petra’s leadership, the portal has grown to more than 1.1 million unique visitors a month with over 350,000 property listings for sale and rent, contributed by more than of 5,000 agencies nationally.
Petra graduated with Honours in Business before pursuing her Masters, where she completed a 70,000-word thesis on entrepreneurship in the property industry.