August 16, 2019
The housing market may be one that sees ups and downs and variables, and with changes to the market and different factors that play into the roller coaster of it all, first-time homebuyers are left hanging with various anxieties. Buying a new home can even cause stress levels to increase to the point of anxiety attacks. A study from Homes.com examined first-time homebuyers and found that 44 percent of responders felt nervous throughout the entire process.
From credit to home value to neighborhood depreciation, not to mention things inside the home that could cause problems, homebuyers have every reason to feel nervous. But there are solutions to these problems, and the first step is understanding what ails them.
Here’s a better look at some of the stress factors hitting homebuyers in today’s housing market and how real estate professionals can help.
Unstable Prices
As the housing market improves, it goes without saying that the prices of the homes will increase as well. The market continues to stabilize, which is great for sellers. But for buyers, it can be causing a lot of stress, especially when it comes to striking while the iron’s hot.
For potential homebuyers who are shaky about buying a home, it’s a perfect opportunity to lay out the trajectory of home pricing to encourage them one way or the other. The longer they sit on a decision, the more favor they have in buying a home will dwindle. Laying it out clearly just how volatile the market is and how fragile their place is in it, the more it will create an authentic look at where they stand.
Mortgages
The economic downturn of the previous decade caused major problems in the market in more ways than one. It caused lenders to change the way they worked with applicants. Stricter mortgage requirements were expressed and more diligence was imposed on the application process as a whole. However, plenty of homebuyers still qualify, even with stricter guidelines.
Some homebuyers may be deterred by the potential of being turned away more easily than in previous years. Homebuyers who find themselves in a situation where they need to go back to the drawing board, they should be directed to see how they can achieve a better credit rating. This will help them in the long run when it comes to building a foundation for the future purchase of a home.
Buyer Competition
The housing market also presents a sticky situation in buyer competition. The market has gotten more tight for homebuyers, creating a competition among homebuyers, especially for homes that offer affordability. There may be a dozen people interested in one place at the same time.
For homeowners interested in a particular spot, they can include a pre-approval letter from a lender in an offer they submit. Not everyone who pursues a home is well-prepared, so doing this gives them a leg up on the competition and puts this in much better favor.
About Associations Liability Insurance Agency (ALIA)
The ALIA Team (part of the Riverton Insurance Agency Corporation), specializes in helping real estate professionals find the affordable and comprehensive liability insurance they need, without the hassle. ALIA dates its roots to 1991 with the founding of FREA, Foundation of Real Estate Associates. In 2013, ALIA was created to work with multiple insurance companies thereby broadening the portfolio of products to customers. For more information about our products and services, contact us today at (800) 882-4410.