Educating Today's Home Buyers

 

Every publication or article we pick up is how hot the housing market is in many parts of the country.  However, it is more important than ever that we try to help educate those out there attempting to buy in this pandemic related market.  Those of us in this industry are so accustomed to the market that we forget some of the simple basics.  Three of those basics, as I was perusing articles stood out to me.

One of the most difficult obstacles for older buyers or those not comfortable with technology is touring homes virtually.  In many markets, this is the norm with social distancing orders.  One may not be able to see the home in person prior to offers being submitted.  There is the risk of losing the home to those that are comfortable with virtual technology shopping.  The positives are that real estate agents are putting more and more homes online with video tours which is now becoming a norm.

Second, as the Rocket Mortgage commercials of yesterday’s super bowl pointed out, “certain is better” and never be “pretty sure”.  Most homebuyers get pre-approval for a home loan from a mortgage lender prior to making their offer.  With a shortage of homes, a buyer wants to make sure they have pre-approval rather than just pre-qualified.  Oftentimes with multiple offers to consider, the seller will want to make sure they are looking at a buyer that can put their finances behind their offer. 

And the last simple piece of education for home buyers is to consider the time they plan to stay in the home.  With historic low rates it is a great opportunity to lock in a long term 30-year fixed mortgage.  However, if a buyer is certain that they will only be in the home a few years, it may be best to consider an adjustable mortgage, as it can be at a lower rate.  But it will readjust based on the economy.

These basics apply to first-time home buyers, move-up or right sizing buyers (up or downsizing), and those senior buyers deciding they no longer want the upkeep of a home.  Relocation buyers are also at different phases of their life process and these basics apply to relocation home buyers also.