Home Builders | Affordability |Cost vs. Convenience
Home Builders:
Home Builders are “cautiously optimistic” says Jerry Howard. Builders are hopeful in regard to the housing markets 2 month upward trend. Yet there is still concern about affordable housing. Especially, when discussing the First-time home buyer segment. First time home buyers need BIG ATTENTION and special programs implements from Congress, to supplement the lack of affordability.
Affordability:
And while affordability might be a HUGE issue, the Law of Supply and Demand remain; and we have yet to meet the housing demand. Which does allude to a strong recovery for the residential real estate arena. Here are a few reasons why:
As rates have risen, so have cash offers. The Mortgage Bankers Association said Wednesday that the average rate for a 30-year, fixed-rate mortgage rose to 6.39% last week.
But a lot of the people buying homes in this market don’t actually need a mortgage. Roughly a third of home sales last year, were all-cash deals, according to Redfin. That’s the highest share since 2014, when the market was still recovering from the subprime mortgage and foreclosure crisis. Cash buyers are institutional investors; people selling in expensive markets, taking their proceeds, and buying in more affordable ones.
Which leads me to last point…..
Cost vs. Convenience | Why is Open Door appealing to Sellers? What consumers should know?
Will consumers choose Convenience over Cost? In some cases, yes; in some no.
Within a few clicks from your phone, you can have a cash offer from Open Door. The appeal to the consumer is efficiency and convenience. No showings, no listing, you move when you want and close when you want. Pretty cool. However, here is what you should know.
If you want to get the most money for your home and have it marketed to the right buyers, you need to hire a traditional real estate agent. As, on average, you will get less for your home utilizing an iBuyer program. OpenDoor can be a good option if you need to sell quickly and you’re willing and able to sell it for lower than the fair market value. Remember, convenience has a price, and this is a “for profit” business.
Piatt’s 2 cents:
Save your money. When in doubt, ask a professional. Always consult your parents. And lastly, come talk to me and Ticor.
