In 2021 there was 30% less inventory in the past year, which puts buyers at a disadvantage. What should you do to help those looking to enter the market?
Be prepared to sacrifice some wants. If you can’t find the house you want, be willing to give up some “nice-to-haves” for your “must-haves.” Prepare buyers to settle for the best they can do under the current circumstances and then encourage them to upgrade later on when the market shifts.
Expand your search. Working with a real estate agent who really knows the area is the best way to find a home that fits your budget and lifestyle. A local real estate agent may know of neighborhoods that are nearby that have more availability or lower price points.
Have buyers get preapproved ASAP. This is a great opportunity to forge relationships with mortgage brokers in your market to get buyers approved before you start to show them properties. In a market with such a limited home supply, not doing this legwork ahead of time puts your buying clients at a disadvantage before the process even begins.
The average rate for a 15-year fixed-rate mortgage dropped to 2.2% in January 2021—the lowest it’s been since Freddie Mac started reporting nearly 30 years ago.
What Lower Rates Mean for Buyers
Buyers should take advantage of these historic lows, which should be a point to bring up to potential buyers who are getting discouraged by the low inventory. If buyers are willing to be patient and not get into their “dream home” right away, taking advantage of low mortgage rates can help them get into the market now with a plan to upgrade down the road.
With more and more reliance on technology in 2021, online real estate services are growing. Using clients such as SetSchedule can help you to connect with potential buyers and sellers in real time using the SetHello function, as well as function as a CRM, and will allow you to work with other professionals such as mortgage brokers and title companies once the Communities feature launches this fall. Sign up for early access here.
First, if you’re itching to buy a home but can’t quite afford it yet, some sellers like Divvy offer a rent-to-own agreement. In this deal, you agree to rent the home for a specific amount of time (could be several months to several years) before becoming the owner. The plus side of rent-to-own is that it allows you to bypass the time it takes to save for a down payment and get into a house fast. Also, it means you don’t have to qualify for a mortgage right away.
Recently SetSchedule CCO Daniel Parzivand sat down with some of the members of Divvy to learn more here.
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