06.29.2022 Buying Tips

Does Buying Property Make You Want To Cry?

Does Buying Property Make You Want To Cry?

Half of American home hunters admitted they have cried while trying to find the perfect property.

We look at why buying a home is so emotional and stressful for many buyers here in Sydney’s eastern suburbs and what you can do to reduce the tears.

New data from US listings website Zillow reveals that half of Americans have reported crying at least once while trying to buy a home. The same survey showed younger buyers are particularly vulnerable to the emotional rollercoaster of buying property, with 65% of Gen Z buyers and 61% of Millennials reporting that they cried while attempting to buy a home.

Although the data is from the US, and there are obvious market differences, we believe there would be a similar outcome to any study conducted here in Australia given the tight and rising market we’ve experienced over the past two years.

Rapidly rising house prices have been a global phenomenon

Globally, for the past couple of years, we’ve all been part of a pandemic property trend: money was cheap thanks to low-interest rates; supply of property for sale was low; and COVID made us rethink our lifestyle and property wishlist. All these factors combined to put pressure on prices around the world, driving extraordinary price growth.

Like Australia, the US property market has become more competitive over the last two years, leading to increased frustration from buyers struggling to get a foot on the property ladder or make their next property move.

A year ago we noted that, in the year to April 2021, US house prices rose 14.3% – their fastest rate in 30 years.

And, as we wrote last week, the past two years have resulted in historic price growth for the Sydney property market, with the city-wide median house price rising almost 25% between mid-2020 and the start of 2022. Many areas within Sydney’s eastern suburbs recorded even larger increases, setting new records. Several suburbs are now registering median house prices in excess of $5 million.

There’s no doubt it’s been a tough market in which to try to buy, which is why the recent plateauing of price growth could be welcome news, and mean fewer tears for buyers.

The stress of buying a home

Digging further into the Zillow survey reveals some more interesting facts.

  • 90% of buyers surveyed found at least one aspect of the home-buying process stressful
  • 62% were stressed about finding a home within their budget
  • 61% were stressed about the low supply of homes on the market
  • 58% were stressed about whether they would be able to find a home in their preferred suburb or neighbourhood

Worries about finance, the search process and location are also common stress points we see amongst buyers in Sydney’s Eastern Suburbs.

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Take the stress away from the home buying process

As the survey results note, there’s no doubt that buying a home is both deeply personal and emotional, and as real estate agents, we understand this.

Wanting to buy a property, and putting in a formal offer or bidding at auction almost always means you have formed a genuine emotional attachment to the property. You’ve probably imagined celebrating birthdays or Christmas on the property. When you’re unsuccessful in buying it, there can be a big feeling of loss, as if your life plans and dreams have suddenly been ripped away.

We often say that for a buyer, a lost sale is like a marriage proposal where the person you’re proposing to has said “no”. There’s a huge amount of emotion involved, which is almost necessary when you’re committing to spending a large sum of money.

Beyond the emotion, buying a house is also time-consuming, requiring a huge investment in research, searching and preparation. Using a buyer’s agent can help reduce this commitment.

It’s also important to do your research on the current market, have your finance organised in advance, and register for off-market sales with local real estate agents in the areas you want to target. Most importantly, you should be ready to act decisively when you see the right property.

As agents, we recognise that buyers are emotionally invested in their property search. That’s why honesty and transparency are so important, alongside simple things, such as getting back to people in a timely manner.

And, by the way, it’s not only buyers who cry – selling a property is emotional for different reasons, particularly if you’re downsizing and selling the family home with all its memories.

Looking for advice about selling or buying in Sydney’s eastern suburbs? Get in touch with our team today.