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Tackling the Down Payment:
The many dimensions of buyer readiness all boil down to two major factors: motivation and cash on hand. Trulia's recently released American Dream Home Survey showed that there areplenty of renters that hope to one-day own a home. Their stats showed just fewer than 60 percent of those surveyed intend on purchasing a home. That means motivation isn’t the primary issue.
So what’s intimidating future clients? The down payment.
When it came down to home buying obstacles, the down payment was the single largest hurdle ownership hopefuls said they are facing. In an era of a fluctuating stock market, high-consumer debt levels, and rising costs to rent, it’s hard for tomorrow’s homeowners to put pennies aside to reach their dream.
So how do Real Estate Agents help the consumer with too little cash on hand?
1) Knowlede of financing
Every buyer’s circumstances, credit history, and resources are different. It pays for an agent to know the government programs and local lenders who provide down-payment assistance. While special financing programs won’t help in every scenario, checking into local and federal options will help inform potential clients of how much work stands between them and the homeownership dream.
2) Being straightforward
Home ownership is a rosy thought for many. However, for an agent one of the greatest responsibilities is to be an advisor. That means being willing to tell buyers the truth. And if home ownership is not within reach right now, be willing to say so and use the opportunity to advise and help clients over the savings and down payment hurdles.
3) Encourage some good ole' fashioned savings
When it comes to ownership, nothing beats preparation. When assistance programs fail, encourage buyers to do things the old fashioned way. That means first figuring out what they can actually afford, and second encouraging clients to come up with a savings plan.
