Today’s buyers are a different breed. The Internet provides up-to-date information about the housing marketing, their home’s value and their credit scores and history. In short, today’s buyers are more educated than they have been in the past. Although they have all of the information that they desire at their fingertips, today’s buyers still need the advice and guidance of an experienced real estate professional.
Here are three things to keep in mind when working with buyers:
1. There are fewer first-time buyers than in recent years. Although first-time homebuyers made up over 50% of the market a few years ago, they currently make up about 38% of the market. While this may seem like a huge drop, in reality it signals a return to a healthier, more balanced market. Since it’s more difficult to secure a loan now than in the past, many potential first-time homebuyers are taking more time to save money for a larger down payment as well as improve their credit history in order to lock into a better interest rate.
2. Fewer investors in the market. In a normal market, investor buyers would make up about 12% of all buyers. In 2012, this figure reached 31%. As a result, many buyers—particularly first-time buyers—felt nudged out of the market since they couldn’t compete with the offers of investors for property. However, the percentage is decreasing as the market continues to correct. This is good news for first-time and repeat buyers who will be able to better compete when making an offer on a home.
3. Homeownership is at a stable level. The homeownership rate in the US is 65%, a number that reflects a balanced market. Homeownership is still the ideal for many Americans; owning a place of one’s own is the fulfillment of the American Dream. Since rents are increasing at the fastest rate in 5 years, many renters are looking into buying a home and many are beginning to save money.
When working with buyers, it’s important to advocate the benefits of homeownership, and support your clients through the real estate process, especially the first-time buyers who may be scraping their pennies to save for a great down payment. Use your skills and expertise to guide your clients through their real estate transactions as well as connect them with reliable mortgage lenders who can help them to shore up their finances before their home purchase.
Brian Buffini’s Referral Maker™ real estate CRM software allows you to maintain contact with your current and potential buyers. Referral Maker helps you keep track of your communication as well as update information while you’re on-the-go. Visit Referral Maker for more information and to start your 30-day free trial today.