Len and Leslie Marma | Marshfield Real Estate, Scituate Real Estate, Pembroke Real Estate


Buyers may be younger and less affluent than you think

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You might think people who buy vacation homes are older, high-net-worth individuals, but a recent survey from Vacasa proves this is not necessarily the case.

In fact, a number of older Millennials and young Gen Xers are looking to buy vacations homes, drawn to their investment potential, with one quarter of prospective buyers in their 20s and 30s.

 

According to Vacasa’s survey of 721 buyers actively looking to purchase a vacation home, these younger buyers are more likely to be motivated by the idea of owning an investment property, while older prospects are looking to buy a second home for personal use.

Regardless of age, the majority of respondents said they plan to spend less than $400,000 on their purchase.

The survey also revealed that the average prospective buyer is middle- to upper-middle class, with 75% reporting a combined family income of less than $150,000 a year.

Moreover, some vacation home shoppers aren’t looking for just one perfect house, but are actually in the market for several vacation rentals. About 25% of those surveyed said they are looking to make multiple purchases, and half of them already owned at least one other home.

Buyers also aren’t set on a ZIP code. While 31% expressed a preference for an urban property, followed closely by 30% who wanted a beach property, buyers aren’t otherwise too particular, with 65% saying they haven’t decided on an exact city for their vacation rental.

That said, the most popular states for vacation rental purchases are Florida, California, Texas, New York and Colorado.


Harvard study paints picture of the average buyer

young couple computer house

There were 3.1 million first-time homebuyers in 2016 and early 2017, according to a recent study on the state of the nation’s housing market by Harvard’s Joint Center for Housing Studies.

And, these buyers tend to be younger, more diverse and more likely to have children. They are also more likely to purchase smaller homes and spend less money on housing.

 

While a review of these buyers shows that they vary widely in age, household composition and other traits that define their housing needs and preferences, we’ve taken the most common characteristics of buyers in 2017 to create a profile of the average first-time homebuyer.

Here’s a basic profile:

Age: under 35

Ethnicity: white

Marital status: married

Children: yes

Type of property selected: detached, single-family home

Square-footage of property selected: less than 1,500

Average home price: less than $200,000

Harvard’s study also shed light on the housing shortage that is plaguing the market, driving up house prices and rents.

For first-time homebuyers, this means they may have less to choose from, and they may end up paying more for what they get.

“If current housing supply trends persist, house prices and rents will continue to rise at a healthy clip, further limiting the housing options for many,” the report stated. “While demographic trends should support a vibrant housing market over the coming decade, realizing this potential depends heavily on whether the market can provide a broader and more affordable range of housing options for tomorrow’s households.”


The Feeling You Get from Owning Your Home https://www.simplifyingthemarket.com/en/2019/06/05/the-feeling-you-get-from-owning-your-home/?a=28412-23dcd4fcc91efdbe85908cce94fbbd07#HousingMarket #LenandLeslieMarma #MarshfieldRealEstate


The annual rate of home price appreciation falls to a 7-year low https://www.housingwire.com/articles/49250-the-annual-rate-of-home-price-appreciation-falls-to-a-7-year-low#.XPav1B3g9k4.twitter




M Crew, May 16th, 2019

4 Tips for Making a Competitive Offer | MyKCM

So, you’ve been searching for that perfect house to call ‘home,’ and you’ve finally found it! The price is right, and in such a competitive market, you want to make sure you make a good offer so that you can guarantee that your dream of making this house yours comes true!

Below are 4 steps provided by Freddie Mac to help buyers make offers, along with some additional information for your consideration:

1. Determine Your Price

“You’ve found the perfect home and you’re ready to buy. Now what? Your real estate agent will be by your side, helping you determine an offer price that is fair.”

Based on your agent’s experience and key considerations (like similar homes recently sold in the same neighborhood or the condition of the house and what you can afford), your agent will help you to determine the offer that you are going to present.

Getting pre-approved will not only show home-sellers that you are serious about buying, but it will also allow you to make your offer with confidence because you’ll know that you have already been approved for a mortgage in that amount.

2. Submit an Offer

“Once you’ve determined your price, your agent will draw up an offer, or purchase agreement, to submit to the seller’s real estate agent. This offer will include the purchase price and terms and conditions of the purchase.”

Talk with your agent to find out if there are any ways in which you can make your offer stand out in this competitive market! A licensed real estate agent who is active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer.

3. Negotiate the Offer

“Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter.

Each time changes are made through a counteroffer, you or the seller have the option to accept, reject or counter it again. The contract is considered final when both parties sign the written offer.”

If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller or even cancel the contract altogether.

4. Act Fast

The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.

Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as quickly as possible.

Bottom Line

Whether buying your first home or your fifth, having a local real estate professional who is an expert in his or her market on your side is your best bet in making sure the process goes smoothly. Let’s talk about how we can make your dream of homeownership a reality!






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