Help Your Clients Avoid Buyer's Regret
Buyer clients are thrilled when they're moved into the new home you helped them buy. But not all homeowners feel this way a few months later for one reason or another. Buyer's remorse is real, and while you may not be able to prevent it 100%, here are some things to consider.
Is the client overly optimistic? Sometimes a buyer finds a fixer-upper irresistible, especially if you negotiated a great price. But sometimes these wannabe Bob Vilas bite off more than they can chew. If you can spend time with these clients discussing the realities of renovation, you may be able to guide them to a more suitable home, winning their gratitude at the same time.
What about the surroundings? Some clients will fall in love with a house without checking out the area. For example, if your buyer commutes to work, suggest that they "practice" by leaving the property at the same time as they would if they lived there. This will give the commuter a realistic view of their future drive time. Other buyers may be unhappy if their new home is too far from their preferred after-work pursuits, so be sure to ask about these during showings.
Does the financing fit? Past surveys have found that, when a home buyer goes over budget to win a bidding war, this sometimes results in mortgages that aren't truly affordable. This is where I can help! Feel free to refer your clients to me for a complimentary consultation or contact me to learn more.1
Why Good Employment News Can Be Bad News for Rates
Until a few weeks ago, it looked like we might have seen the last of 7% mortgage rates, but they returned with a vengeance this month. One factor: recently-released economic data that's stronger than predicted.
For example, employment data came in hotter than expected, with almost 500,000 new jobs instead of the 228,000 predicted. Wages grew faster than expected, and unemployment remained near record lows at 3.6%.
What's next? This week's Consumer Price Index (CPI) news may affect interest rates, too. If CPI numbers indicate that inflation is cooling, this may result in lower rates. Unlike good employment news driving rates up, positive CPI numbers may result in lower rates. However, if CPI numbers are higher than what's been forecast for July, rates may remain high.2
Is It Time to Look at the Light Side?
A career in real estate is truly unique—it has its own rewards and challenges, and every day is different. If you're going through a slow patch or similar, it may be time to check out The Lighter Side of Real Estate.
While this site has plenty of agent humor to enjoy, it also supplies hard-working marketing materials. Some are free, while others are part of the site's Inner Circle which is available by subscription.
Want to check out a freebie? If your Facebook page needs a facelift, you can snag some agent-themed Facebook cover photos like the one shown here in exchange for your email address.
And if you're curious about the Lighter Side's founder, click here to meet him (and his elderly couch).3
Homes Begin to Sell Above Their Asking Prices Again
A new study found that the average sale-to-list price ratio hit 100.1% during the last half of June. This marked the first time in nearly a year that the average U.S. home sold for more than its asking price. In addition, the median home-sale price was down just $1,000 (-0.3%) from a year ago, when prices were near record highs.
The lasting lack of inventory is the main reason homes are selling above their asking price again. New listings are down 25% from a year ago, and the total number of homes for sale is down 12%. However, the study also found that early-stage homebuyer demands are up 4% from a month earlier and near its highest level in over a year.4
Is That House Really a Dream Home?
Even though the website Bored Panda often features humor, it sometimes features valuable advice.
Recently, the site published an article about hidden problems inside homes for sale, including a few that sellers chose to disguise instead of disclosing to their agent.
Here's some advice that stems from real-life experiences:
- One reader's mother found an area where exposed insulation was installed in an odd area of a home's basement. She eventually peeled it back to look and discovered that the insulation was hiding a major crack in the foundation.
- Try to make a cell phone call while in the house. A few Bored Panda readers reported having to go to the top floor of a home for cell phone reception, or to even leave.
- If sellers have chosen odd places to hang large pictures, look behind them. One reader discovered an established termite infestation this way.
- Concerned about a home's overall structure? Put a marble on the floor to see if it moves. A rolling marble suggests foundation problems, especially in an older home.5
Sources: 1theamericangenius.com, 2mortgagenewsdaily.com, 3lightersideofrealestate.com, 4themreport.com, 5boredpanda.com
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