Housing Market Woes Lowers Buyers/Sellers' Satisfaction

The housing market is in such a state right now that nobody is happy with the outcomes of sales or with real estate companies: not the buyers and not the sellers.

Home-buyer satisfaction is at an all-time low and home-seller satisfaction is declining while real estate companies try to manage customer expectations in a continuously fluctuating housing market, according to J.D. Power and Associates.

According to the 2012 Home Buyer/Seller Satisfaction Study, home buyer satisfaction is at 789 on a 1,000-point scale, the lowest level in the history of the study. Sellers are even less satisfied than buyers with a 768 average.

Overall satisfaction with home buying is determined by three factors: agent/salesperson; office; and variety of additional services. Four factors determine the home-selling experience: agent/salesperson; marketing; office; and variety of additional services.

"Although home buyers and sellers are aware of continuing challenges in the real estate market, a key reason satisfaction is down is that customer expectations are not being met, either in terms of sellers having to compromise on their listing price, or for buyers who are compromising on the home's condition and size," Christina Cooley, senior manager of the real estate practice at J.D. Power, said in a statement.

Satisfaction is definitely tied to money. According to the study, the highest-performing real estate companies were the most consistent at capturing a greater proportion of the listing price. Sellers reported receiving an average of 89% of their listing price.

The majority of customers in the survey were experienced with the process of buying or selling a home. Sixty percent reported being repeat buyers and 70% were repeat sellers. Higher satisfaction with the process understandably translates to customer loyalty; however, J.D. Power reported that loyalty was stronger toward companies than agents.

"As customers continue to feel anxious about the current housing market, it requires a combination of a high-performing company, process and resources along with a truly exceptional agent to put home buyers and sellers at ease," Cooley said.