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Consider the following types of homebuyers and the important and unique considerations that pertain to each:
For an incoming transferee, moving to your area as a result of a new job, a home search probably will be intensive. Most transferees find that a home purchase can be accomplished during a one-week house-hunting trip. It happens like this:
The scenario detailed above is based on some important assumptions:
Accomplishing the goal of selecting a home
in a week is possible in major metropolitan real estate markets thanks to the
systems and procedures, developed and maintained by Realtors®. The important factors are the following:
First, computerized MLS search capabilities that facilitate selection of those
properties, out of the thousands available, which are most likely to meet your
buyer’s needs. Second, a lockbox
or keysafe system which obviates your having to collect and return keys to the
listing broker's office, a wait for the listing agent to appear with a key, or a
wait for the homeowner to be at home. A move-up buyer is selling his
current home and looking for something bigger, better, and more expensive.
He will benefit most in a buyers' market. The price concessions to be negotiated on a more expensive
home should more than offset the concessions to be made on the sale of the
current home. Another factor often
to one’s advantage in a buyers’ market is a wider selection of available
homes. A move-down buyer is selling his
current home and looking for a smaller, less expensive home.
A hot sellers' market would be to his financial advantage.
The reasons for this are, of course, just the opposite of those cited for
the move-up buyer. But in a hot market, the number of available homes is
comparatively small. When the
selection is limited, it is more difficult to find a suitable next home.
This fact, as well as the ease of selling in a hot market, might suggest
that your buyer should consider a contract to buy a home that is contingent upon
the sale of his existing home. Contingent
offers will be treated more completely later. A first-time buyer, or anyone renting
for that matter, is in an excellent position, especially if their lease is
month-to-month. Under no great
pressure to move, the first-time buyer can make a home selection and negotiate a
contract under the most favorable terms. In
addition, owning can be less expensive than renting in many cases.
Nevertheless, first-time buyers sometimes approach a home purchase with a
good deal of unadulterated fear. Help
your buyers with information. As
knowledge replaces the dreaded unknown, fear will subside and an intelligent
decision will emerge. Calculate the costs and benefits of home ownership (compared with monthly rent) for your buyer in order to determine the anticipated economic impact of a decision to become a homeowner. A critical assumption is the mortgage interest rate. Keep in mind that any significant appreciation in home values can be an overwhelming long-term factor. But as we know, one is not guaranteed that home values will appreciate. It is most important for your first-time buyer to realize that the tax benefits of home ownership can be obtained in each pay check merely by filing a new IRS Form W-4 with his employer. There is no need for to wait for a large tax refund in the spring. Your buyer can enjoy the refund every pay period, when it will do the most good for his budget. |
