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cIf you have ever wondered what drives a homebuyer to select a particular home, look no further. The American Housing Survey provides insight into the homebuying process. The top two reasons for choosing a home were its size (cited by 76 percent of buyers) and room layout/design (74 percent). The house’s price and the neighborhood were each cited by 72 percent of home buyers. For buyers of new homes, room layout/design, neighborhood, exterior appearance and construction quality tended to be even more important than for other types of buyers. Among first-time buyers, on the other hand, price was more often a consideration.

Buyer_Choice_Chart_1

The neighborhood a home is located in also plays a major factor in home selection. The top two reasons for choosing a neighborhood were “the house itself” (cited by 85 percent of buyers) and safety (71 percent). Safety, looks/design and to some extent good schools tended to be more important to new-home buyers than to other types of buyers. Proximity to work and friends/family tended to be more important to first-time buyers.

Neighborhood_Choice_Chart_2

Homebuyers looked at 10 different homes before deciding which one to buy (median). About half of the buyers used their saving for a downpayment, 17 percent used the sale of a previous home, and 11 percent purchased their home without a downpayment.

A deeper investigation into home buyers, the homes they are buying, and why they are buying them can be found here.

This original post was published on NAHB’s blog, Eye on Housing.

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