Essent first-time homebuyers study + Edelman Intelligence / ESSENT HOME FINANCING STUDY 1
Research objectives Understand the needs and preferences of First-Time Home Buyers, specifically related to: • Technology and the tools First-Time Home Buyers want to use when finding and buying their first homes; • Home financing and First- Time Home Buyers’ knowledge about financing options; • Influencers and information sources; • Real estate agents and the role they play in the home purchase process; and, • Home options First-Time Home Buyers are willing to consider to purchase their home (e.g., fixer uppers). Edelman Intelligence / ESSENT HOME FINANCING STUDY 2
methodology Audience Sample size method Margin of error timing N=3036 First-Time Home Buyers Individuals age 40 or younger who are currently in the market to buy or who have recently purchased their Survey fielded from first home. Broken down as follows: 20-minute online survey ± 1.8% (February 22- March 7, 2018) Potential Home Buyers Considering purchase within next n=1525 9 months New home owners Purchased first home within past n=1511 two years Edelman Intelligence / ESSENT HOME FINANCING STUDY 3
The role of The role of The role of digital and digital and digital and social social social Edelman Intelligence / ESSENT HOME FINANCING STUDY 4
Key takeaway prefer to use at all stages of the home buying process from home to securing a Edelman Intelligence / ESSENT HOME FINANCING STUDY 5
Websites and APPS used to search home listings Shown: Percent selected Potential New 74% 74% 74% Home Buyer Home owner Zillow 83% 80% Realtor 51% 49% Trulia 46% 45% Real estate agency websites (e.g. Coldwell 30% 34% Banker, RE/MAX) of first-time home buyers MLS search for home listings 22% 35% online using sites like… Home Finder 18% 15% Redfin 17% 22% For Sale By Owner 17% 15% Homes 16% 13% Zip Realty 11% 9% Q25: Which of the following have you done/ did you do while searching for your first home? (n=3,034) Edelman Intelligence / ESSENT HOME FINANCING STUDY 6
90% 90% 90% of first-time home buyers prefer to work with a real estate agent who uses digital tools throughout the home buying process Q19: How much do you agree or disagree with the following statements? (n=2,546) Edelman Intelligence / ESSENT HOME FINANCING STUDY 7
First-Time Home buyers want to use text messaging, N=1340 online document sharing and e-signature services with N=1206 real estate agents Digital tool preferences with real estate agent Shown: Top two box somewhat, strongly interested 94% 90% 90% 89% 88% 72% 71% Text messaging Online portal to access Online document eSignature services Online Instant messenger Digital wallet/online MLS listings sharing scheduling/calendar payment services tools Q20: And how interested would you be in using the following types of digital tools when working with your real estate agent during the home buying process? (n=2,282) Edelman Intelligence / ESSENT HOME FINANCING STUDY 8
83% 83% 83% Of first-time home buyers Would be interested in using an online application to apply for a mortgage Q19: How much do you agree or disagree with the following statements? (n=2,546) Edelman Intelligence / ESSENT HOME FINANCING STUDY 9
75% of First-Time Home Buyers are interested in using an N=1340 online financial document locker during the N=1206 mortgage process Preference of Working with Digital tools in Mortgage Process Shown: Top two box somewhat, strongly interested Online mortgage application 83% eSignature tools 80% Text messaging 79% Online scheduling/calendar tools 76% Online financial document “locker” 75% Digital wallet/online payment services 64% Instant messenger 60% Q51: How interested are/were you in using the following types of digital tools when working with a mortgage provider? (n=3,034) Edelman Intelligence / ESSENT HOME FINANCING STUDY 10
More than 40% of Potential First-Time Home Buyers N=1340 have used or plan to use a mortgage aggregator site N=1206 to Compare Rates Use OF a Mortgage Aggregator Site Shown: Percent selected potential home buyers New home OWNERS 21% 10% 64% 56% 23% 26% Yes No No, but I intend to Yes No Don’t remember Q48: When searching for a mortgage provider, Have you used/did you use either of the following? Edelman Intelligence / ESSENT HOME FINANCING STUDY 11
Mortgage Aggregators offer First-Time Home Owners a snapshot of what is available to them but don’t always provide a good experience “Wanted to try -- it was awful. Much worse offers than the three local banks we approached and I was harassed by salesmen for months (still get calls/spam from them almost two years later).” “It gives me many options without having to go – New Home Owner to each mortgage providers site individually and so is easier to compare.” – Potential Home Buyer “It was the easiest way to get a snapshot of current rates and terms before deciding which lenders to approach.” – New Home Owner Q48: When searching for a mortgage provider, Have you used/did you use either of the following? Q49: Why have you used or are planning to use/did you use a mortgage aggregator site? Edelman Intelligence / ESSENT HOME FINANCING STUDY 12
Key takeaway want and expect to be of their home buying process. Edelman Intelligence / ESSENT HOME FINANCING STUDY 13
76% 76% 76% Of first-time home buyers 63% Would like to see home listing ads targeted toward them on social media Of first-time home buyers agree: “I expect a real estate agent to be active on social media” Q19: How much do you agree or disagree with the following statements? (n=2,546) Edelman Intelligence / ESSENT HOME FINANCING STUDY 14
Most First-Time Home would engage with their N=1340 real estate agents through social channels N=1206 Preference of Social Media Shown: Top two box Asked of those who use social media I would/do follow a real estate agent on social media 83% I am most likely to see real estate information if it’s posted in my 82% social media feeds I would/do follow a real estate company on social media 80% I would/did continue to follow my real estate agent on social 78% media after my home purchase is/was completed I would/did friend my real estate agent on Facebook 77% I would like to see home listing ads targeted toward me on social 77% media I would/did connect with my real estate agent on LinkedIn 64% Q19: How much do you agree or disagree with the following statements? Q24: And how much do you agree or disagree with the following statements? Edelman Intelligence / ESSENT HOME FINANCING STUDY 15
Younger Millennials Expect Real Estate Agents to N=1340 have a broad social media presence N=1206 Preferred social media platforms Shown: Percent selected by generation Younger 85% 40% 52% 42% 31% 20% 26% 9% Millennials (n=543) Older 85% 51% 39% 35% 27% 19% 15% 7% Millennials (n=816) Gen X 90% 50% 37% 34% 27% 14% 13% 6% (n-253) Q21: On which social media sites do you expect a real estate agent to be active? Edelman Intelligence / ESSENT HOME FINANCING STUDY 16
Information Information Information sources sources sources Edelman Intelligence / ESSENT HOME FINANCING STUDY 17
Key takeaway on their real estate agents and mortgage professionals for home buying , but their most advice. Edelman Intelligence / ESSENT HOME FINANCING STUDY 18
First-Time Home Buyers rely on real estate agents N=1340 and mortgage professionals most for advice N=1206 during their home search Resources Relied on during home Search Shown: Net Relying (Potential Home Buyers)/Relied (New Home Owners) 68% My real estate agent 70% Potential Home Buyers 54% My loan officer/mortgage broker New Home Owners 62% Q61: How much are you currently relying on each of the following to help advise or guide you on the purchase of your first home? (PHB only) Q62: How much did you rely on each of the following to help advise or guide you on the purchase of your first home? (NHO only) Edelman Intelligence / ESSENT HOME FINANCING STUDY 19
54% 54% 54% Of first-time home buyers Rely on their parents for advice when buying a home Q19: How much do you agree or disagree with the following statements? Q24: And how much do you agree or disagree with the following statements? Edelman Intelligence / ESSENT HOME FINANCING STUDY 20
However, there is now A single source that all first- N=1340 time home buyers use for advice during the process N=1206 Most Relied on Down Payment Advisors - Total Shown: Percent selected Which How much The home How much I mortgage I money I How I should The mortgage buying can afford to should finance my process should put choose to process spend on a down on a down payment overall overall home finance my home home My real estate agent 42% 14% 17% 14% 16% 23% My loan officer/mortgage broker 10% 23% 22% 20% 28% 29% My parents 16% 14% 15% 16% 11% 11% Other Sources 25% 33% 32% 30% 30% 26% (total of 8 other sources) N/A 7% 16% 14% 20% 15% 11% Q63: Who have you relied/did you rely on the most to advise you about the following? Edelman Intelligence / ESSENT HOME FINANCING STUDY 21
Recommend
More recommend
