From Inman News Features
Despite industry efforts to move toward a paperless home buying transaction, the majority of buyers remain buried and overwhelmed by the piles of forms, processes and legal jargon involved, according to a survey conducted for LandAmerica Financial Group.
The survey, conducted by the Ketchum Global Research Network, found that 86 percent of responding home buyers reported difficulty and confusion in the process and more than one-third said there were delays in closing their purchase.
Forty-nine percent of survey respondents voiced concern with the process of establishing an escrow account, followed by 46 percent with negotiating a contract, 42 percent with ensuring that appraisals are conducted properly and 42 percent with buying title insurance.
Approximately 80 percent of previous homeowners said they found the process confusing despite their prior experience, but first-time home buyers were more likely to experience difficulty, according to the survey.
With respect to age, 95 percent of respondents aged 18-29 found managing the processes difficult, compared with 84 percent of 30-49 year-olds and 79 percent aged 50 and older.
Similarly, the process remained difficult across income brackets, with 85 percent of respondents in the below $30,000 range citing confusion, 90 percent in the $30,000-$50,000 range, 84 percent in the $50,000-$70,000 bracket, 84 percent in the $70,000-$90,000 bracket and 80 percent with $90,000-plus incomes.
Through all the paperwork and confusion, 43 percent of respondents said they look to their real estate agent to ensure a smooth transaction, 42 percent said they rely on the advice of lenders and attorneys and 10 percent said they work with a title insurer in this capacity.