Factors Underlying Consumer Difficulties with the Homebuying Process

Abstract

Data from a study identifying consumer difficulties with the homebuying process were analyzed. The instrument listing 66 potential difficulties was mailed to a random sample of 250 homebuyers to indicate those encountered during search, purchase, and first year of occupancy. They were also asked to identify the two problems considered most important and their perceived causes. The response rate was 80.4 percent. Of the 201 households who responded, 153 were eligible buyers. The mean total number of difficulties reported by the sample was 7.16. Problems most frequently reported were higher utility costs, foregone activities, mechani cal system problems, necessary repairs or adjustments, delayed closings, and overlapping payments. Frequency distribution comparisons between sample subgroups showed sim ilarities on the most frequent difficulties, but variation in both content and rank order for the most important problems. Mean comparison tests revealed significant differences in total number of difficulties on the variables purchaser experience, income level, and age of struc ture. The 30 items reported most frequently by respondents were factor analyzed to identify underlying constructs. Upon extraction and rotation, 27 variables loaded upon four factors which were named: surprise difficulties, new‐construction problems, financiallpersonal con sequences, and chain transaction constraints. Implications for further research and consumer education are drawn from the findings.

The information needs of prospective homebuyers: an exploratory study of apartment purchases in Finland

“…Interestingly, most of the difficulties with the homebuying process giving rise to information needs seem to be common and fairly stable across Western counties in particular. Most of the difficulties reported by White and Barclay (1981) were encountered by the Finnish homebuyers, too.…”

“…135–139) have developed a model that characterizes information needs and seeking during various phases of the housing search and purchase process. This model differs from White and Barclay's (1981) approach discussed above in that Maclennan and Wood exclude post‐purchase issues, that is, financing, settlement, move‐in and occupancy. As a result, a model comprising four major phases is proposed.…”

“…Drawing on survey with a sample of 250 homebuyers in the Rocky Mountain Region in the US, White and Barclay (1981) analysed factors underlying consumer difficulties with the homebuying process. Even though their study did not explicitly focus on information needs giving rise to information seeking, the analysis of difficulties faced by homebuyers is relevant because such problems are highly indicative of information needs.…”