Although many in the real estate industry like to pretend that the younger generations are in control of the real estate market it’s not true. Boomers, as usual, are large and in charge.
Take the National Association of Realtors’ (NAR) annual Home Buyer and Seller Generational Trends report, for instance. In the 2015 report, NAR claims that since 32 percent of homebuyers come from the Millennial generation, they comprise the largest pool of homebuyers in today’s real estate market. The fact is, at least according to their report, Baby Boomers comprise 31 percent of today’s homebuyers. If those were election stats we’d say there is no statistical difference, right?
When it comes to sellers, Boomers rule, representing 43 percent of home sellers. Coming in second (and way behind) is Gen X, representing 27 percent of sellers. If you’ll be joining the selling group, the buying group or both, and it’s been awhile since you’ve been in the real estate market, read on for some tips on what to do first.
1. What will you do with your current home?
This is something you should discuss with your real estate agent at the beginning of the process. Will you try a simultaneous closing where you sell the current home while buying the new one and try to close escrow on both the same day? Or do you want the current home sold before finding the new one?
As a matter of fact, there are several ways to deal with the should-I-buy-first-or-sell-first conundrum and we’re happy to walk you through them. It’s important, however, to get clear on which method you’ll use before starting the new home purchase process.
2. Get your Financing in Order
Once you figure out how you’ll deal with the current home you are in a better position to know the type of loan you’ll need. Visit with your lender and lay out your plan. If you like what’s being offered, go for it. If not, shop for another lender.
Remember, the advertised interest rate typically isn’t the whole ball of wax when shopping for a mortgage. The Annual Percentage Rate (APR) reflects the rate with points and fees included and the advertised rate doesn’t, so use the APR when comparing lenders’ offers.
3. Hiring an Agent
I always try to avoid writing blog posts about “how to hire a real estate agent” because they seem so self-serving. Baby Boomers, in my experience, are a different breed of consumer, though and look at customer service differently than the younger generations.
Not only do they look at it differently, we’ve found that they demand that providers meet their higher expectations. Now blanket statements are just plain stupid so know that I’m not referring to every single individual among the millions of folks in this huge generation, but if you are among those that demand a high level of customer service, you need to make it clear to agents as you interview them.
Yes, that’s sad. All real estate agents should provide exemplary customer service, but they don’t. If you have a preferred method of contact (email, text, telephone, etc.), make that clear as well. If you expect a return phone call within a certain time frame, make that one abundantly clear.
Finally, never work with an agent that treats you like a doddering old fool. You’re not, and you should never do business with anyone that feels otherwise.
Now get out there and sell and buy that Madison house!
Posted by Jolenta Averill on