According to a recent HSH.com survey about the biggest roadblocks to owning a home, those polled had several different answers to that important question. The readers of the poll were given 6 different options to choose from - including having no problems - and below is a list of their answers.
- Home prices: 23.5%
- Down payment: 22.9%
- Credit score: 12.8%
- Interest rates: 12.6%
- Property taxes: 7.3%
- No issues: 20.9%
To read the full report, click here.
Increasing Home Prices
The number one hurdle to overcome when buying a new home was the price of the home. The reason for this hurdle was that median home prices were on an upward trend throughout 2013. According the the National Association of Realtors (NAR), home prices were up 11.5% when compared to home prices in 2012.
To overcome the hurdle of the price of homes takes a few steps. The first is education. Work with a real estate agent who will guide you through the realities of the current housing market. You may have $200,000 to spend on a home, but it might not be in your ideal neighborhood. Or, if you are in your ideal neighborhood the finished in your new home won't be as nice.
The next step is to better identify your needs and wants. Although you may think you need a 5,000 square foot home with a 4-car garage, it will be best to tailor your housing search to better fit the realistic market expectations.
Down Payments
To overcome the hurdle of the price of homes takes a few steps. The first is education. Work with a real estate agent who will guide you through the realities of the current housing market. You may have $200,000 to spend on a home, but it might not be in your ideal neighborhood. Or, if you are in your ideal neighborhood the finished in your new home won't be as nice.
The next step is to better identify your needs and wants. Although you may think you need a 5,000 square foot home with a 4-car garage, it will be best to tailor your housing search to better fit the realistic market expectations.
Down Payments
As the size of a down payment can be directly related to the cost of a home, it makes sense that the second most common hurdle to overcoming the obstacles to homeownership was the amount of down payment to put toward a home.
Fortunately, there are several down payment assistance programs available throughout the country for those who believe a down payment will be a difficult obstacle to overcome. These down payment programs include first-time home owner credits, the 203(k) renovation plan, grant programs, and the Realtor Care Foundation.
An interesting result to note in the HSH.com survey, the youngest group of respondents (those aged 18 to 29) said they struggled with their down payment the least. This is encouraging news for those homeowners waiting for first-time home buyers to enter the market as it seems this issue might not be slowing them down as much as originally thought.
No Problem Here
Nearly a quarter of the respondents said they ran into no hurdles whatsoever. In terms of age, older homeowners reported fewer hurdles than their younger counterparts. Twenty-nine percent of homeowners over the age of 60 led the “no hurdles” group.
Fortunately, there are several down payment assistance programs available throughout the country for those who believe a down payment will be a difficult obstacle to overcome. These down payment programs include first-time home owner credits, the 203(k) renovation plan, grant programs, and the Realtor Care Foundation.
An interesting result to note in the HSH.com survey, the youngest group of respondents (those aged 18 to 29) said they struggled with their down payment the least. This is encouraging news for those homeowners waiting for first-time home buyers to enter the market as it seems this issue might not be slowing them down as much as originally thought.
No Problem Here
Nearly a quarter of the respondents said they ran into no hurdles whatsoever. In terms of age, older homeowners reported fewer hurdles than their younger counterparts. Twenty-nine percent of homeowners over the age of 60 led the “no hurdles” group.
The graph above, showcasing the age brackets at which homeowners had no hurdles to overcome, is courtesy of HSH.com
To overcome any hurdle when it comes to your home buying process, make sure you are working with a qualified, diligent and skilled real estate agent who will negotiate your best interests throughout the entire home buying process.
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