Real estate may be a game of numbers, but the new generation of buyers are more influenced by emotion than figures.
That is according to a new study by the Real Estate Council of Ontario (RECO) which shows that those in the 18 to 34 age bracket are more influenced by emotion when buying their home.
“Despite the fact that Ontarians are fairly home smart, we’re seeing more and more people – especially younger home buyers – getting swept up in the frenzied market, making emotional decisions they could later regret,” said Joe Richer, Registrar of RECO.
More than 90 per cent of the survey respondents said that price is a key factor, followed by functional fit, structural integrity and neighbourhood. However, over 50 per cent admit to being influenced by emotion.
This desire to follow their heart may be the primary reason why more than 25 per cent of those in the 18 to 34 category are willing to go over their budget and bid over the asking price to secure a home.
A lack of experience, says RECO, is also the reason why younger buyers are more at risk for costly surprises during the buying process, especially when it comes to closing costs.
“It’s all about being home smart versus acting with your heart – a message that’s particularly important for younger buyers who may feel increased pressure to overextend themselves financially to find their dream home,” says Richer.
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