What Compromises Are Homebuyers Willing to Make In Order to Afford a Home?

As housing affordability has worsened, homebuyers have started to accept that they may need to make some compromises when it comes to what they want in a home versus what they really need. Real estate marketing platform Redfin surveyed prospective buyers to figure out the most common compromises they’re willing to make in order to afford a home. One of the top compromises was location, with more buyers willing to compromise on proximity to schools, healthcare facilities, and amenities, such as restaurants, stores, and bars. Of those surveyed, 53% of buyers say they don’t need to be near highly-rated schools and a respective 52% and 51% of buyers say they’d forgo proximity to public transit and restaurants for the right home.

On the other hand, homebuyers care the most about personal safety, with just 22% willing to compromise on safety and just 32% who are willing to live in an area prone to natural disasters. Homebuyers also tend to care more about specific home features, such as the number of bathrooms, bedrooms, and having a home office. Only 43% say they would forgo designated work-from-home space for a more affordable home, and only 42% say they would compromise on the number of bathrooms in a home. Outdoor space was also important for buyers, with only 39% willing to compromise on outdoor space.

“Prices are starting to come down, but buyers–especially first-timers–are still battling with affordability,” said Katie Shook, a Redfin Premier agent in Phoenix. “Buyers want a home that fits their practical needs: They’re looking for a bedroom for every kid, space to work from home or an easy commute, things like that. Some more luxurious features, like a fully finished backyard with a pool or a recently renovated kitchen, aren’t as valuable to buyers as they used to be. People might want those things, but they aren’t willing to–or can’t–pay more for them.”

It’s worth noting that in many parts of the country, the housing market has shifted firmly in buyers’ favor. Buyers may be able to negotiate down the sale price, or get concessions like a mortgage-rate buydown or closing costs, from a seller that could help them afford some nice-to-have features in addition to must-have features. “Sellers know it’s taking longer to sell and that they can’t expect multiple offers like they would have gotten a few years ago,” Shook said. “Today, the definition of a win is selling. So for buyers who see a home they really want, it’s worth a try to negotiate with the seller.”