What Would It Take to Get You to Buy?

• February 2nd 2009

by Mark Wellborn

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Kenneth Harney’s column in this weekend’s Washington Post examined the reasons why many prospective home buyers are “sitting on the fence” rather than ponying up money for a new home.

The column pointed to a recent study by the research arm of the National Association of Home Builders that asked self-described “on-the-fence” buyers what was preventing them from buying.

Of the 700 buyers surveyed, 44 percent noted that they were holding out for lower mortgage rates, 41 percent were uncertain as to whether or not they could qualify for financing, and 38 percent expected to see lower house prices.

However, the most interesting aspect of the study was what enticements would be the biggest motivators in getting the respondents to buy.

From The Post:

“The study examined the effectiveness of a [10 percent federal tax credit with a cap of $22,000 in the most expensive markets]. It ranked sixth on a list of 10 features that would pull buyers off the fence — well behind mortgage and price concessions.

The mortgage rate that consumers said would be most effective in convincing them to buy now: a 30-year loan with a fixed 3 percent interest rate.”

This article originally published at https://dc.urbanturf.com/articles/blog/what_would_it_take_to_get_you_to_buy/504.