Homebuyers Tell It Like They See It Source: Real Estate Center ©2001- David S. Jones When the Real Estate Center at Texas A&M University asked 3,000 Texas homebuyers to describe their recent purchase, about 400 replied. Their responses show how stressful buying a home can be. "The process is grueling in the best of circumstances, and the tight sellers’ market of recent times only increased the stress," said Dr. Jack C. Harris, Center research economist. "In conjunction with Lawyers Title Company, the Real Estate Center asked recent homebuyers about their buying experience and what changes they think would make the process more buyer friendly." The final question on the survey was, "If you could change anything about the homebuying process, what would that be?" Almost a third answered the question, and most of them expressed dissatisfaction about some phase of the process. Several were unhappy with circumstances beyond anyone’s control — high prices, interest rates or a lack of homes from which to choose — but many comments offer insight into what bothers today’s consumers the most about the home-buying experience. "The most common complaint was that the real estate agent did not perform well or that some services were not done at all," Harris said. "For many buyers, the process was unfamiliar and unsettling." The buyers wanted the agent to make an effort to reassure and comfort them. Some buyers felt the agent did not take sufficient time to help them through the process of finding a home." "I feel agents should give the buyers a better understanding of the whole process of purchasing a home instead of rushing through a sale," wrote one homebuyer. Since mandatory disclosure of agency relationships was instituted, more people are using buyers’ agents. They survey revealed that when a buyer’s agent agreement is signed, buyer expectations are raised but not always satisfied. Of those respondents complaining about their agent, 70 percent had used a buyer’s agent. There were complaints about the seller’s agent, too."(We had problems) communicating with the seller’s agent," wrote one homeowner. "He was not very responsive." Even though buyers do not pay commissions directly, 16 homebuyers felt the real estate commissions are too high for the services provided. Apparently the buyers believe sellers inflate home prices to recover the cost of the commission. Eleven homebuyers expressed a desire to have more contact with the seller, feeling that an agreement could have been worked out more easily had there been more interaction between the parties. "(We needed) more contact with the seller," one buyer wrote on the survey. "(We were) kept apart until closing. Details can be best worked out between buyer and seller." Not everyone wanted more contact. "We met the seller during the buying process," wrote one buyer. "That was a big mistake." One of the most valuable things a sales agent does is prevent or resolve conflicts between buyer and seller, which is no small task considering the naturally adversarial nature of the relationship. "Buyer comments to the survey testify to the agent’s importance in the process," Harris said, "and point to things agents can do to leave a positive impression on buyers. Many respondents praised especially helpful agents, and it is reasonable to assume the majority who wrote nothing were satisfied with the service they received." "We had a great experience," wrote one buyer. "The agent made all the difference. She kept us well informed almost daily. This was so important to us." While a majority of survey respondents had no comment regarding agents, 85 percent said they would use or recommend the agent again. Complaints about the complexity of the homebuying process fell into one of three categories: too complicated, too time-consuming or too costly. Many felt the process involved too much paperwork. Undoubtedly, they were reacting to the numerous, lengthy legal forms they had to sign at closing. "Less hassle," one harried respondent lamented. "I cried at least six times before it was over." "The time it takes to find and buy a home, especially the time spent after the buyer finds the "right" home, frustrates many buyers," Harris said. "Of course, it does not help that buyers spend much of the time mired in uncertainty as they wonder Will the seller accept the offer? Will the lender approve the loan? Is anything wrong with the house?" The long list of closing costs irritated some buyers. They wondered why they need many of the services or why the fees were necessary. "Do away with the cheesy, sleazy fees and costs for people and services we don’t see or use," one disgruntled respondent wrote on the survey. "Your money is stolen right in front of you. How do they keep a straight face?" "Today’s consumer is accustomed to buying things instantaneously," Harris noted. "Even large purchases like automobiles can be consummated in a matter of hours. Many buyers do not appreciate the legal complexities of taking title to real property and the mortgage obligation. They simply do not understand why it should be so complicated to buy a home. The real estate industry has made strides in speeding up the buying process, Harris explained, but an increase in disclosure requirements and legal contingencies have limited the progress. "Real estate professionals might do well to pay special attention to helping buyers understand what is going on at each step of the process, why the various expenses incurred at closing are necessary and the potential consequences of cutting corners," he said. Based on the survey, it is apparent the Internet is of growing importance to buyers searching for a home. The Internet is, however, still a small factor in the overall search. "The Internet is a great tool," wrote one respondent. "I’d like to see listings get online faster, with all the facts about the house (so we can) make decisions or at least rule out a house." Buyers responding to the Center survey seem to appreciate that sales agents are dependent on other professionals to make the homebuying transaction go smoothly. While buyers realize the agent is not always at fault, buyers do expect the agent to keep them informed about progress. "We had no problems with our mortgage broker, but the buyers of our condo had a mortgage broker from hell," wrote one homebuyer. " She delayed our closing for over a month, she was rude and kept baiting us all on. Laws for mortgage brokers need to be more strict so that people can’t get away with this kind of thing." "Buying a home can be trying for everyone concerned," Harris said. "While some problems are unavoidable, many problems can be resolved or avoided if the sales agent provides information, reassurance and support to the buyer." Jones is director of communication and senior editor for the Real Estate Center at Texas A&M University.