New Realtor.com® Buying Power Tool Shows What Homes Are "Affordable" vs. "A Stretch" Based on the Buyer's Finances

Rhea-AI Summary

Realtor.com has launched a new buying power tool aimed at helping home shoppers filter listings based on affordability. This innovative feature allows users to categorize homes as 'affordable,' 'a stretch,' 'difficult,' or 'out of reach' by inputting their financial details, current mortgage rates, and associated costs. Surveys indicate that 68% of shoppers are surprised by their affordability, with many unaware of hidden costs like taxes and HOA fees. This tool empowers buyers to make informed decisions amidst rising interest rates and increases transparency in the home-buying process.

Positive

• Introduction of a new buying power tool enhances user experience on Realtor.com.
• Allows filtering of home listings by different affordability categories.
• Addresses confusion over mortgage rates and associated costs.
• Helps buyers make more informed purchasing decisions.

Negative

• None.

Home shoppers can now filter homes by different buying power categories to only see the homes they can afford

SANTA CLARA, Calif., Aug. 4, 2022 /PRNewswire/ -- With interest rates constantly changing and home prices at all-time highs, understanding what you can afford has never been more important. To give buyers a more objective view of their budget, Realtor.com^® has introduced a new buying power tool to help home shoppers see whether a specific home is "affordable," "a stretch," "difficult" or "out of reach." It uses a home a shopper's specific financial details, current mortgage rates, taxes, insurance and HOA fees to determine if the monthly payments will be comfortable.

Buying power labels now appear directly on home listings on Realtor.com^®, making Realtor.com^® the first national home search site where shoppers can filter their search by selecting their desired affordability range.

Recent Realtor.com^® surveys found that more than two-thirds (68%) of shoppers were surprised by what they could actually afford for their first home. Additionally, 32% of recent buyers found it difficult to understand how changing mortgage rates affected their monthly payments and 62% were surprised by closing costs. Realtor.com^®'s affordability calculator and buying power tool can help prevent these unhappy surprises during the home buying process.

"There is nothing more disappointing than falling in love with a home only to realize that you can't afford it, and nothing more exciting than realizing you can afford that dream home. However, there are many factors that go into affordability," said Colleen Coyle, vice president, product management, Realtor.com^®. "We introduced this tool to help shoppers better understand how much home they can afford and if specific homes fit their budget given their personal financial situation. This tool is especially important right now with rising interest rates – which can add hundreds of dollars to monthly payments and impact buying power."

A home's affordability is more than just the asking price. Many first-time home buyers don't realize the added costs of things such as HOA fees, taxes and insurance, not to mention closing costs, which can really add up. Realtor.com^®'s new buying power features give home shoppers the opportunity to input their monthly income, debt payments and savings to determine their budget. Users can save this information to their buyer profile and then search only for homes that fit that budget.

To calculate buying power, visit the Realtor.com^® affordability calculator and enter your income, monthly debt payments and available funds. By saving this information to your profile, listings on Realtor.com^® will include an affordability label – "affordable," "a stretch," "difficult" or "out of reach." Users can also filter their search by homes that are within their desired affordability range.

To learn more, visit: https://www.realtor.com/homemade/new-buying-power-tool-shows-what-homes-are-affordable-vs-a-stretch 

About Realtor.com^®
Realtor.com^® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com^® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, Realtor.com^® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, Realtor.com^® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit Realtor.com^®.

Media Contact
nicole.murphy@move.com

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/new-realtorcom-buying-power-tool-shows-what-homes-are-affordable-vs-a-stretch-based-on-the-buyers-finances-301599767.html

SOURCE Realtor.com

FAQ

What is the new feature introduced by Realtor.com?

Realtor.com has introduced a buying power tool that helps users filter home listings by affordability.

How does the buying power tool work on Realtor.com?

Users input their financial details to categorize homes as 'affordable,' 'a stretch,' 'difficult,' or 'out of reach.'

What percentage of home shoppers are surprised by their affordability?

According to surveys, 68% of shoppers are surprised by what they can afford.

How does the buying power tool help address rising interest rates?

The tool provides clarity on how changing mortgage rates impact monthly payments, aiding in budget planning.

What additional costs can impact home buyers according to Realtor.com?

Home buyers often overlook costs like taxes, insurance, and HOA fees, which the tool helps account for.