While the real estate industry is wringing their collective hands over how to attract millennials to the market, the baby boomer generation is actively buying and selling homes. The National Association of Realtors is, in large part, responsible for the disregard for the very real impact baby boomers are having on the industry.
The latest Home Buyer and Seller Generational Trends report, for instance, claims that millennials make up the largest pool of homebuyers in the U.S., at 32 percent. What the organization fails to mention, however, is that, despite the baby boomer pool being smaller, they broke it in half in their study, making their numbers appear smaller. If the truth be known, boomers lag millennials in the home-buying market by only 1 percent.
That’s only half the story, however. When it comes to home sellers, baby boomers are large and in charge, representing 43 percent of home sales. If you are a part of these baby boomers group, and it’s been some time since you’ve dealt in real estate, take these three steps first, to ensure a smooth road to the successful sale of your home.
If you’ll be buying another home, planning ahead is imperative. Not only will the loan process be more challenging since you already own one home, if you’ll need a simultaneous close (timing the closing of both homes at the same time), the process becomes even trickier.
The “should I sell or buy first” predicament has several solutions, which I am happy to share with you.
Get the Financing Going for a New Home
Now that you know how you’ll deal with your current home you’re better positioned to determine the loan you’ll need for the new home. It’s time to choose a lender and get professional advice and a loan pre-approval. Most baby boomers have gone through this process before so it shouldn’t be too unfamiliar. However if it has been a long time, please let me know how I can help.
Keep in mind that when comparing mortgage rates, the advertised rate typically doesn’t reflect the rate with fees and points included. Ask for the Annual Percentage Rate and use that to compare loan offers.
Many baby boomers have served in the military and have never used their VA loan. Look into this. There is a common misconception with baby boomers that VA loans can only be used once. This is simply not true. You can obtain a VA loan over and over again so long as you pay off the previous loan.
It is also important to think about your homeowner’s insurance when buying a new home. You can read more about that by clicking on another blog I wrote here that will help when purchasing a new home.
Hire a Real Estate Agent
If you’ll be undertaking two transactions (buying and selling), it’s important to take some time when deciding which agent to hire. Now is not the time to base your decision on familial or friendship ties. These are transactions that can either positively or negatively impact your finances and require the services of an experienced professional.
I understand that baby boomers typically have high expectations of who those they choose to represent them and it’s important that you never compromise that. Sure, all real estate professionals should provide estimable customer service but, sadly, they don’t. With over 14 years of experience in helping many people buy and sell homes, you can be confident that I will represent your interests first and foremost.
Crystal clear communication along every step of the way will be important to you. It is also very important to me. I will ensure you have all the information in a timely matter and you can contact me at anytime.
Finally, I know that baby boomers aren’t a doddering old fools and I hope that you’ll never work with an agent who treats you as such. This is a vibrant and an important time in your life and you should only work with an agent who understands this and does everything possible to assist you, according to your dictates, down the road to your new life. Give me a call and let my experience assist you with a smooth transition.
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