Recent studies show that only 25% of Americans believe that 2022 is the right time to buy a home. So if you work in the real estate industry, you’ll need to persuade buyers to remain optimistic about the housing market. But why are prospective buyers so pessimistic in the first place?
Generally speaking, we can attribute this sense of hesitation to extremely high housing prices and limited inventory due to supply chain shortages. And right now, potential buyers are frequently forced to engage in bidding wars to get their offer accepted, which further increases the final closing cost.
But, despite the uncertain state of the housing market, there are still plenty of people willing to purchase a home. To capitalize on these clients, real estate agents must work to reassure buyers that they’re making the right choice. So let’s discuss the most common concerns among potential buyers and tips that you can use to help put them at ease when they ask, “Is it a good time to buy a house?”
Concerns for Buyers in an Uncertain Market
High Mortgage Rates
In 2021, mortgage rates were at an all-time low, but economists predict that housing prices will continue in an upward trend throughout the year thanks to skyrocketing inflation and a strengthened employment market. These increasing mortgage rates make it much less affordable for buyers to purchase a home.
Increasing Housing Prices
Housing prices are also increasing, and they are doing so much more quickly than the rising income rate. According to CoreLogic’s Home Price Index, the average price of the American home has risen 18% from October 2020 to October 2021, which is the most significant increase they’ve seen in the 45 years. Furthermore, consumer prices are at the highest levels we’ve seen in 40 years as the result of supply chain issues. For people looking to sell, this is good news. However, first-time homebuyers may be the most hesitant to purchase a house.
Buyers are eager to snatch up homes left and right, but there are simply not enough houses available to reach the current demand. The end result is a nationwide seller’s market, which occurs when there are more buyers than homes available. When there are fewer homes on the market, prospective buyers feel the pressure to settle for a home that may not be up to their standards, especially if it is within their price range. For prospective buyers, options are limited, and deals are closing quickly.
How to Address Buyer Concerns
Remind Them That Real Estate Is a Long-Term Investment
Buyers may be hesitant to complete a purchase in the current market, but remind them to consider a long-term perspective on their investment. Regardless of external factors, the price of real estate will continue to appreciate over time. Typically, people will purchase a residential property, live on it, or rent it. As the home’s property value increases, homebuyers will have equity to leverage later on.
Educate Them About Mortgage Options or Loans
Before showing homes and closing deals, you’ll need to understand each client’s specific financial situation. Prospective buyers should know how much they’re able to put down on a home because this will drastically impact their interest rates. Clients also must understand their debt-to-income ratio and their credit score to know whether or not they qualify for a home loan. Let your clients know that even if their finances aren’t in the best condition, plenty of financing options are still available. For instance, if your client doesn’t have the fund for a large payment or an excellent credit score, government-insured loans are always available.
Don’t Wait for the Perfect Property
In the current economic climate, waiting around for a buyer’s ideal property to become available may not be realistic. There are only a limited number of homes on the market, and it could cost buyers more in the long run. Assure prospective buyers that every home they view will have features they don’t like.
The key here is prioritization. When buyers are in the process of finding the right fit, realtors must understand which qualities buyers are willing to compromise and which they aren’t. Generally, most buyers regret compromising on location over other attributes, but different buyers have different priorities. For example, a couple with pets may prioritize a large yard over having additional square footage. Let your clients know that they’ll be satisfied with their purchase when they’re clear on which qualities are most important to them.
Increase Your Leads with Call Motivated Sellers
There is always a way that you can close a deal, regardless of the current economic climate. After all, shelter is one of the most basic human needs we need to live, and someone is always in the market for a new home.
But the bottom line is that prospective buyers want their needs met for a reasonable price, which is challenging when there are limited housing options and inflated pricing. So when clients inevitably ask, “Is it a good time to buy a house?” use the power of persuasion to reassure them that a home is a worthwhile investment. And remind them that waiting may not help — unfortunately, experts don’t predict that housing prices will drop anytime soon.
First and foremost, you must connect with new leads who are willing to consider a purchase. If you’re ready to find more interested buyers in any housing market, Call Motivated Sellers can help.
We are an American-based real estate cold calling service, complete with a highly skilled sales staff. Our team has years of experience cold calling in the real estate industry, along with access to the best information for buyers, sellers, and agents to help you close more deals. Leave the hard work of vetting your leads to us so that you can focus on showing off your portfolio, closing deals, and increasing profits.
With a steady supply of potential homebuyers referred to your team from Call Motivated Sellers, you can keep your business in steady growth. And getting started is easy — to begin boosting your supply of sales leads, just contact our team today!
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