Homebuying basics are tripping up new buyers
A new survey found first-time buyers feel prepared but struggle with basic questions about costs and next steps. Use early consults to set expectations before showings.
Many first-time buyers think they are ready to purchase a home, but a new survey shows confidence does not always mean they understand the steps, costs and choices ahead.
The Wells Fargo survey questioned more than 2,000 aspiring first-time buyers, age 18 to 65, on mortgage and homebuying topics. Nearly 7 in 10 said they felt knowledgeable, but 75% answered four or fewer questions correctly out of 12.
"In fact, of the 2,012 respondents who identified as prospective homeowners, only one person answered all the questions correctly. This knowledge gap could have real-life financial consequences as small misunderstandings can lead to higher monthly payments, delayed purchases, or missed opportunities," Wells Fargo said.
Other findings from the survey include:
- Just 25% of respondents knew when to apply for a mortgage.
- Nearly 90% of respondents didn’t understand what’s involved in closing costs (the largest blind spot in the quiz).
- 88% of respondents were not clear on the first steps to take when beginning the homebuying process.
- 80% of respondents would make a critical mistake when submitting a competitive offer on a home, such as sharing a pre-approval letter for the maximum approval amount with a seller.
The findings point to a clear opportunity to make buyer education part of the conversation before the home search begins. A buyer consultation can help uncover whether customers understand preapproval, closing costs, monthly payment comfort, cash needed at the table and the timing of lender conversations.
The survey also found many buyers are turning to friends, family, real estate websites, search engines, social media and AI tools for guidance. Realtors® can add value by helping buyers sort through that information, ask better questions and know when to involve lenders, attorneys, inspectors or other professionals.
The findings also give agents a useful marketing angle for first-time buyer outreach. Short posts, emails or workshops on “what buyers often miss” can bring uncertain prospects into the conversation before confusion delays their search or weakens their offer strategy.
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