An article this week at the New York Times reported on the results of a consumer survey about home buying and mortgages. At some point in time every real estate investor is selling off inventory for any of a number of valid investment reasons. In many cases the best return on investment is realized through a sale to a consumer rather than another investor, so helping them to locate the right lender for them can actually increase the selling price.
Of course the lowest interest rate was at the top of the requirements list. However, about a third of the consumers surveyed indicated that they would be willing to pay a higher interest rate to get a mortgage that comes with superior service and less stress. There were 618 people surveyed, so it’s not a large sampling.
The survey was done by a consulting group to report to major banks for planning mortgage services and marketing. These banks want to expand their mortgage activity in the future and knowing what customers want is important. Of course, the survey concentrated mostly on higher income consumers, almost half earning more than $100,000 per year, and around half of them had purchased or refinanced a home since 2010.
More than 80% stated that the interest rate was their most important criteria. However, a significant number of them, especially in the 18 to 35 age group, seemed inclined to pay more for better service and less stress from their lender. Pet peeves were slow execution, difficult communication and inability to track the status of an application.
An article this week at the New York Times reported on the results of a consumer survey about home buying and mortgages. At some point in time every real estate investor is selling off inventory for any of a number of valid investment reasons. In many cases the best return on investment is realized through a sale to a consumer rather than another investor, so helping them to locate the right lender for them can actually increase the selling price.
Of course the lowest interest rate was at the top of the requirements list. However, about a third of the consumers surveyed indicated that they would be willing to pay a higher interest rate to get a mortgage that comes with superior service and less stress. There were 618 people surveyed, so it’s not a large sampling.
The survey was done by a consulting group to report to major banks for planning mortgage services and marketing. These banks want to expand their mortgage activity in the future and knowing what customers want is important. Of course, the survey concentrated mostly on higher income consumers, almost half earning more than $100,000 per year, and around half of them had purchased or refinanced a home since 2010.
More than 80% stated that the interest rate was their most important criteria. However, a significant number of them, especially in the 18 to 35 age group, seemed inclined to pay more for better service and less stress from their lender. Pet peeves were slow execution, difficult communication and inability to track the status of an application.