Real Estate Backstory is your weekly update for real estate news, changes, and trends relevant to the Atlanta area and surrounding markets. Topics covered this week include:
Caution against buyer love letters.
New study that shows a disconnect between what clients and agents are thinking.
70% of people that wanted to buy last year were not successful.
American’s are feeling pessimistic about homeownership.
What is preventing us from pursuing homeownership?
Recent mortgage stats.
Why are listings not selling?
Georgia’s migration trend.
Reasons to purchase a multi-generational home.
The following is a synopsis of the latest episode of “The Real Estate Backstory”. You can watch the video in its entirety below.
The real estate market can be unpredictable and competitive, especially when demand for homes is high. As a result, some buyers and their agents resort to writing love letters to the seller to help make their offer stand out. However, there are risks involved, particularly with violating fair housing laws. In addition, some new studies have revealed expectations and trends in the housing market that buyers and agents should be aware of.
Risks of Buyer Love Letters
Buyer love letters may seem like a sweet gesture to win over the seller, but it can easily violate fair housing laws. Describing personal details of the buyer, such as their family and children, can be seen as discriminatory. Therefore, agents should be cautious about presenting love letters to the seller and ask for their client’s permission before doing so.
Housing Market Trends and Expectations
Studies show that eight out of ten Americans consider buying a home a major priority, but last year, three in ten potential buyers were not successful due to the high demand for homes. Despite this, many prospective buyers still have unrealistic home price expectations. In fact, one in nine Americans plans to buy a home in the next 12 months with a budget of $269,000, which is significantly lower than the average home price of $379,000. Another notable trend is the pessimism that many Americans feel about the housing market, with two-thirds believing that it will crash.
Overcoming Market Pessimism
Despite the pessimistic view of the housing market, buyers must consider that waiting another year to buy could mean losing out on a three to four percent increase in home value. Furthermore, the top three factors that prevent buyers from pursuing homeownership are down payment, not enough income, and credit scores. Mortgage rates, on the other hand, are lower on the list.
Watch the entire video for more information here: