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86
Percent of Homebuyers Report Confusion When
Buying A Home
Despite a record breaking home-year in 2002,
consumers remain perplexed by the mountain of forms, processes and
legal jargon involved in buying a home. In fact, a recent survey
conducted for LandAmerica Financial Group finds that 86 percent of
homebuyers report difficulty and confusion in the process and more
than one-third of them experienced delays in closing on their
house purchase.
“Clearly, homebuyers are in need of education
and guidance from their real estate advisors,” said Jan Alpert,
president of LandAmerica Financial Group. “Consumers think the
hardest part of buying a home involves managing the sheer number
of separate steps or processes necessary to close the purchase
without a delay.
The survey found that respondents voiced most
concern with the process of establishing an escrow account (49
percent) followed by negotiating a contract (46 percent), ensuring
that appraisals are conducted properly (42 percent) and buying
title insurance (42 percent).
“As title insurance and real estate services
professionals, we have the experience and knowledge to walk the
parties through the transaction ahead of time, helping them
understand all the pieces and to anticipate potential delays,”
explains Alpert. “The level of confusion that exists as a result
of a lack of understanding about the home-buying process differed
little depending on age, income or home-buying experience, the
survey found.
In fact:
- Nearly 8 of 10 previous homebuyers (those
who had been through the process at least once before) found the
experience confusing despite their experience, but first-time
homebuyers were most likely to experience difficulty or
confusion.
- The percentage that found managing the
processes difficult or concerning remained high across all age
groups: 95 percent of 18-29 year olds found it difficult
compared with 84 percent of 30-49 years olds and 79 percent of
those aged 50 or older.
- Similarly, the process remained difficult
across income brackets ranging from a low of 80 percent for
$90,000+ incomes to a high of 90 percent for $30,000-$50,000
incomes.
- 43 percent of respondents look to their
real estate agent to ensure a smooth home-buying experience, and
another 42 percent rely on the advice of lenders and attorneys.
While only 10 percent of consumers polled said they were working
with a title insurer in this capacity, many of these real estate
professionals turn to their title insurance and closing partners
of choice for assistance.
“As a whole, our industry largely has been a
silent giant in the real estate services arena,” acknowledges
Alpert. “We are committed to being a partner of choice to real
estate agents, brokers, lenders and escrow officers in educating
the consumer and making this process smoother and easier for
them.”
--The Title Report (2/24/03)
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