« Why getting a tax refund is a poor idea | Main | Embarrassing money mishaps haunt consumers: study »

May 03, 2021

Love at first sight seals deal for majority of homebuyers

How do you know you've found the right home? Well, it's love at first sight of course.

According to a new report by BMO Bank of Montreal, 80 per cent of prospective homebuyers are sold on a home when they first set eyes on it.

The Psychology of House Hunting report, conducted by Pollara, also found that while 80 per cent know right off the bat that it's the perfect home for them, another 68 per cent say they are willing to settle for a home that's less than perfect.

Laura Parsons, mortgage expert, BMO Bank of Montreal says, "It's important to take a practical approach when house hunting to have a clear idea of where you stand financially to ensure you make a responsible home buying decision.

"Doing research ahead of time and setting realistic expectations can help you avoid making an uninformed or rushed purchase."

And she's right. You should never rush into what is probably one of the biggest financial decisions you will ever make in your lifetime.

In fact, Canadian homebuyers spent an average of five months house hunting and visited 10 homes before making the decision to purchase.

The study also revealed that 33 per cent of prospective homebuyers admit to feeling rushed into making a purchase and, for first-time home buyers that figure rose to 39 per cent.

The biggest concern for homebuyers however, is finding something wrong with the house after they have moved in (71 per cent); followed by finding lower market prices after they have bought a house (55 per cent).

The study also delves into the varying reasons why people are motivated to buy the homes that they do including being a good investment (44 per cent); being the right time to get into the housing market (37 per cent); wanting to move to a new neighbourhood (23 per cent); and having a growing family (18 per cent).

Before you hit the pavement shopping for a new house it is important to do your research, get pre-approved for a mortgage so that you know how much house you can qualify for, and even though you may qualify for a substantial amount -- only buy what you can afford.

Take your time. Don't feel rushed or pressured.

Your dream home is waiting.

By Donna Donaldson, MSN Money

What was the psychology behind your decision to buy your home?





Post a comment


Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...