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Home buying has felt like a roller coaster over the past decade. Luckily for you, and your buyers, things are on the upswing. These four trends in home buying have turned what once was a long and painful process back into a much more pleasant experience for you and your clients.
1. 20% Down Isn’t the Rule
For the past few years, lenders have required 20% down. Now that has been relaxed, and if you’re working with first-time buyers, they may even be able to purchase with as little as 3% down.
2. Credit Restrictions Have Lessened
Good credit, bad credit, no credit? Not exactly, but lenders have relaxed their standards slightly, making is easier for your buyers with less-than-perfect credit to get a mortgage without sky-high rates.
3. Cash Is Not Always King
Cash was once considered a done-deal as there was no waiting on a lender for approvals, etc. Now, as long as buyers have pre-approvals and paperwork in order before an offer, they can be just as attractive to a buyer. Your clients should be prepared to pay slightly more than the cash buyer, but a seller will most likely not rule them out.
4. The Seller Doesn't Hold All the Power
Not that long ago inventory was scarce and buyers found themselves fighting over the same properties, driving up the price while getting caught in bidding wars. While home prices are still increasing, the number of properties on the market is also increasing, making it a much more buyer-friendly market.
All in all, it looks like you’ll find yourself a little busier this year as buyers come knocking on your door because finding, and purchasing, their own home has become substantially easier.