Homebuyers Overestimate Down Payments

September 26, 2017
Wallet, money, tablesetting; Photo: novelrobinson via Pixabay

In a survey from the National Association of Realtors (NAR), one-third of respondents thought that saving for a down-payment would be “very difficult” despite the fact that the average down payment is only six percent.

According to MarketWatch, potential buyers may be overestimating what they need to pay, keeping them out of the buying game. An earlier version of the NAR’s survey found that 87 percent of non-owners thought that a down payment of 10 percent or more would be necessary.

Down payment doubt was even higher with for buyers with lower incomes: 47 percent of those with no college education thought that saving for a down payment would be “very difficult,” while 32 percent of those with at least some college education thought the same.

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