It’s no secret that commute time and traffic have both become major factors for home buyersIn many cases, a longer work commute limits where buyers will consider looking. However, homes within buyers’ desired commute length may be out of their budget. If commute length is a top priority for your buyers, here’s how you can help them weigh the pros and cons and ultimately find the home that fits their needs.Assess the current situation.
Begin by having a discussion with your clients about their current commute.
If they are severely limiting their home search to only a small area that offers a reduced commute time and are not having luck, it’s time to ask three important questions:
- Is a job/career change a possibility in the near future? If so, how will this alter their commute pattern? Often, people weigh a specific commute as a factor without taking into consideration that a commute may change.
- Is working from home an option, now or in the future? Your client may not have asked the question before because there wasn’t a need, but it could be possible that their employer offers flex or remote scheduling, which would help them.
- If available, would they be open to taking public transit or ride-share? Not being behind the wheel can take off loads of stress and open up time for relaxing or working on the ride.
Calculate the financial costs of a commute.
The second consideration involves the financial costs of the commute compared to the potential value and price of the home. Two main costs associated with commuting include the cost of fuel and wear and tear on the vehicle.
Take the time to sit with your clients and do the math to evaluate if the cost of commuting is prohibitive. Commute Solutions provides an easy-to-use cost calculator that allows clients to calculate their average monthly spend commuting, as well as see an estimate based on areas they are looking.
Once your client has a dollar amount attached to their monthly commute, they can look at whether or not that amount is greater or smaller than the difference in estimated mortgage payments, as well as potential property value increases of a particular area.
It may be that while one home is closer to work and offers a shorter commute, the difference in the value of a home a little farther out is greater than the cost of commuting.
But, the decision may not always be an economic one. None of these calculations take into account the time spent in the car and the stress some suffer from commuting.
Discuss quality of life.
This brings us to the third consideration – quality of life. Let’s say your client will commute between 30 minutes and one hour each way, each day. This would equal an entire workday each week. A shorter commute from a slightly higher-priced home might be the better option for a client who doesn’t have the extra time to spend in a vehicle.
These factors will all be different depending on the demographics of your clients. Younger, single buyers tend to place more importance on urban amenities, time and convenience. For this reason, they are less likely to be attracted to moving farther from the center of a majority of their activities and work.
On the other hand, marriage and parenthood are what usually inspire people to move out of big cities to more rural areas.
Don’t approach the conversation from one side.
Looking at a nicer home at the cost of a longer commute begins to look a little different when all of the factors are added into the equation. There is actually a name for this; it’s called the “commuter’s paradox.”
The paradox is that, although one would expect that people balance the cost and hassle of commuting against benefits of other things like a larger or nice home slightly farther away, it just doesn’t happen.
Research has shown time and again that people who have long regular commutes are not as happy as those who don’t. For this reason, be sensitive to those aspects and don’t approach this situation strictly from a numbers point of view. Your client will likely have an emotional response tied to the prospect of increasing their commute, even if it means they will have a larger, nicer home.
Encourage and assure!
Assure your clients that once the impartial factors are weighed out, the pros and cons are more realistically netted out and they can better decide the home and neighborhood that is right for them.
Finally, there is no “right” answer: the factors involved are entirely personal. Going into the decision-making process with eyes wide open will make the end result one buyers can more happily live with. And, they will thank you for helping them.
Have you helped a buyer weigh out the pros and cons of purchasing a home based on commute length? Tell us about your experience in the comments!
This blog has been updated from an earlier version published April 16, 2016.