As the housing industry is recovering from the recent downturn, it appears that home buyers are still wary of committing to a long-term, fixed mortgage. In fact, according to national real estate surveys, only 35% of home buyers say they can now afford a mortgage with a variable interest rate. Two out of three homebuyers surveyed indicated they would not be able to comfortably service a debt of at least ten thousand dollars through the next five years. In fact, only one out of three (NINE) indicated that they would be able to do so. So, why are so many cash house buyers in Richmond hesitant to tie the knot with a long-term fixed mortgage?
One possible explanation could be that many homebuyers believe they would not need a laundry room when they move into their new home. According to national real estate surveys, only thirty-two percent of homebuyers say they would be able to easily fit a washing machine, dryer and clothes hamper in their new residence. Sixty-three percent indicated they would not have adequate storage space for their family's clothing and accessories. Only half (52%) indicated that they would be able to easily make the necessary changes to make their home a more user-friendly environment. Only fifteen percent indicated that they would be able to envision any room in their new house that would not be easily accessible to their children.
According to national real estate surveys, only twenty-nine percent of sell my house fast buyers indicated that they would be able to easily install a microwave oven and refrigerator in their new residence. Only thirty-one percent indicated that they would be able to easily install a trash disposal system for their kitchen. Only thirty-one percent indicated that they would be able to easily install a garbage disposal system for their kitchen. Only fifteen percent indicated that they would be able to easily make changes to their kitchen design to make it more user-friendly.
When asked what they would be willing to spend with regard to remodeling and updating their kitchen, the response from the participants was consistent with the national real estate survey results. Most participants indicated that they were willing to spend at least three thousand dollars to add a microwave oven, convection oven, garbage disposal unit, dishwasher, refrigerator and garbage can to their kitchen. Only fifteen percent indicated that they would be willing to spend less than three thousand dollars to make these changes to their current kitchen
In terms of floor plan layout, only twenty-two percent of home buyers indicated that they would be happy to have a large walk-in closet or utility room in their residence. More than three-fourths of home buyers indicated that they would not be happy to have a laundry room in their residence. Ninety-one percent indicated that they would not be happy to have their garage stocked with items used to clean cars. Only eight percent indicated that they would be happy to have their laundry room added to their existing floor plan.
The study by Samuelson & Muench, published by the Journal of Real Estate and Finance, illustrated how important it is for potential home buyers to be willing to expand the size of their walk-in closets. According to Samuelson & Muench, "Many sellers are unwilling to add a walk-in closet, insisting that their residence is currently inadequate. In many cases, they believe that adding an additional closet will detract from their living space and make their house look smaller." In addition to the study, Samuelson & Muench (2021) found that the majority of homeowners who remodeled their homes added closets but were not willing to pay the price it cost to install them, indicated that they were not willing to pay more than two to three thousand dollars for a walk-in closet. Be sure to check out this website at https://www.youtube.com/watch?v=p4jDkUBAZX0 for more info about real estate.
