Dream Home Estate https://dreamhomeestate.com/ Dream Home Estate Mon, 06 Feb 2023 06:10:08 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.3 Buyers on a $2,500 budget can now afford a $400,000 home https://dreamhomeestate.com/buyers-on-a-2500-budget-can-now-afford-a-400000home/?utm_source=rss&utm_medium=rss&utm_campaign=buyers-on-a-2500-budget-can-now-afford-a-400000home Mon, 06 Feb 2023 06:05:06 +0000 https://dreamhomeestate.com/buyers-on-a-2500-budget-can-now-afford-a-400000home/ Things are looking up for homebuyers on a budget as mortgage rates fall from their 20-year highs, according to a report published Thursday by Redfin. In these times, double down — on your skills, on your knowledge, on you. Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn […]

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Things are looking up for homebuyers on a budget as mortgage rates fall from their 20-year highs, according to a report published Thursday by Redfin.

In these times, double down — on your skills, on your knowledge, on you. Join us Aug. 8-10 at Inman Connect Las Vegas to lean into the shift and learn from the best. Get your ticket now for the best price.

Things are starting to look up for homebuyers on a budget.

Buyers with a monthly budget of $2,500 can buy a $400,000 home for the first time since September 2022 as mortgage rates fall from their highs in late 2022, according to a report published Thursday by the online brokerage Redfin.

The average daily mortgage rate was 5.99 percent on Feb. 2, according to Mortgage News Daily — the first reading below 6 percent recorded since September. The downward trend in mortgage rates has meant that a buyer with a $2,500 budget can afford to spend roughly $35,000 more on a house now than they could in November when rates peaked at 7 percent.

Homebuyers on that budget still have $95,000 less in buying power than they did about a year ago when rates were at 3.5 percent. But mortgage rates trending downward and bond reserve investors predicting that the most recent interest rate hike from the Federal Reserve could be its last have been enough to give some buyers the confidence to return to the market.

“We expect more homebuyers and sellers to gradually return to the market by springtime, but mixed economic news and mixed reactions from the market mean the recovery will be uneven,” Redfin Economics Research Lead Chen Zhao said in a statement. “The Fed’s interest-rate hike this week, for example, is both promising and disappointing. The Fed hiked rates at a slower pace than last year, which means mortgage rates are unlikely to rise further. But it also signaled ongoing rate increases to fight inflation, which will likely prevent the steep mortgage-rate decline that some optimistic buyers have been waiting for.”

Mortgage purchase applications are up 15 percent from their early November trough but declined 10 percent week over week during the week ending Feb. 2, according to Redfin. Redfin’s in-house measure of housing demand, the Homebuyer Demand Index, reached its highest level since September during the four weeks ending Jan. 29. It was up 5 percent from a month earlier but down 25 percent from a year earlier.

Email Ben Verde

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]]> Happy Halloween? Mortgage Rates Average 6.66% https://dreamhomeestate.com/happy-halloween-mortgage-rates-average-6-66/?utm_source=rss&utm_medium=rss&utm_campaign=happy-halloween-mortgage-rates-average-6-66 Fri, 07 Oct 2022 20:28:04 +0000 https://dreamhomeestate.com/?p=22434 Despite a slight decrease this week in mortgage rates, the average for the 30-year fixed-rate loan remains more than double what it was a year ago, adding hundreds of dollars per month to financing costs for home buyers. This is prompting more buyers to retreat from the market: Mortgage applications to purchase a home are […]

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Despite a slight decrease this week in mortgage rates, the average for the 30-year fixed-rate loan remains more than double what it was a year ago, adding hundreds of dollars per month to financing costs for home buyers. This is prompting more buyers to retreat from the market: Mortgage applications to purchase a home are down 13% week over week and have fallen 37% compared to a year ago, the Mortgage Bankers Association reported this week. “Rates remain quite high compared to just one year ago, meaning housing continues to be more expensive to potential home buyers,” says Sam Khater, Freddie Mac’s chief economist.

Realtor.com® reports that home buyers have lost about $107,000 in buying power this year. That means buyers who budgeted for a $500,000 home at the start of the year may now be able to afford a property worth only $400,000 or less.

For buyers who are able to still financially move forward, more are turning to adjustable-rate mortgages to lock in a lower rate. However, that rate can jump significantly over time. ARM rates are about a percentage point lower than the 30-year fixed-rate mortgage. The share of ARMs was 11.8% of mortgage applications last week, up from around 3% earlier this year, the MBA reports.

Will Higher Rates Spark More Urban Flight?

Home buyers may be tempted to expand their search criteria to find places that offer greater affordability farther away from city centers. Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS®, notes that rural areas, which are seeing migration gains, continue to be a prime target for buyers. “With mortgage rates near 7%, many people are looking for more affordable homes in less dense areas,” Evangelou writes on the Economists’ Outlook blog. In general, she notes, homes are about 50% less expensive in rural areas and about 20% less expensive in the suburbs than in urban centers.

Freddie Mac reports the following national averages for mortgage rates for the week ending Oct. 6:

  • 30-year fixed-rate mortgages: averaged 6.66%, with an average 0.8 point, falling slightly from last week’s 6.70%. Last year at this time, 30-year rates averaged 2.99%.
  • 15-year fixed-rate mortgages: averaged 5.90%, with an average 1 point, dropping from last week’s 5.96% average. A year ago, 15-year rates averaged 2.23%.
  • 5-year hybrid adjustable-rate mortgages: averaged 5.36%, with an average 0.3 point, increasing from last week’s 5.30% average. A year ago, 5-year ARMs averaged 2.52%.

Freddie Mac reports commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.

(Magazine.Realtor)

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]]> Mortgage Rates Inch Closer to 7% https://dreamhomeestate.com/mortgage-rates-inch-closer-to-7/?utm_source=rss&utm_medium=rss&utm_campaign=mortgage-rates-inch-closer-to-7 Thu, 29 Sep 2022 19:56:18 +0000 https://dreamhomeestate.com/?p=22402 Home buyers who waited to buy a home this month compared to last month may have some regrets. Home buying is 12% more expensive than just a month ago. Fast-rising mortgage rates—up one percentage point in September alone—have added an extra $250 more onto monthly mortgage payments over the past month, Nadia Evangelou, senior economist […]

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Home buyers who waited to buy a home this month compared to last month may have some regrets. Home buying is 12% more expensive than just a month ago. Fast-rising mortgage rates—up one percentage point in September alone—have added an extra $250 more onto monthly mortgage payments over the past month, Nadia Evangelou, senior economist and director of forecasting, writes at the National Association of REALTORS® blog.

The higher rates are prompting the housing market to drastically slow: Pending home sales fell 24% last month compared to last year, and existing-home sales were down 20% annually in August.

Freddie Mac reports the 30-year fixed-rate mortgage averaged 6.70% this week. That is up from 3.01% a year ago.

“The uncertainty and volatility in financial markets is heavily impacting mortgage rates,” says Sam Khater, Freddie Mac’s chief economist. He adds that home shoppers would be wise to shop around.

“Our survey indicates that the range of weekly rate quotes for the 30-year fixed-rate mortgage has more than doubled over the last year,” he notes. “This means that for the typical mortgage amount, a borrower who locked-in at the higher end of the range would pay several hundred dollars more than a borrower who locked-in at the lower end of the range. The large dispersion in rates means it has become even more important for home buyers to shop around with different lenders.”

Mortgage Rate Averages For This Week

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 29:

  • 30-year fixed-rate mortgages: averaged 6.70%, with an average 0.9 point, rising from last week’s 6.29% average. Last year at this time, 30-year rates averaged 3.01%.
  • 15-year fixed-rate mortgages: averaged 5.96%, with an average 1.3 point, increasing from last week’s 5.44% average. A year ago, 15-year rates averaged 2.28%.
  • 5-year hybrid adjustable-rate mortgages: averaged 5.30%, with an average 0.4 point, rising from last week’s 4.97% average. A year ago, 5-year ARMs averaged 2.48%.

Freddie mac reports commitment rates with average points to better reflect the total upfront costs of obtaining the mortgage.

(Magazine.Realtor)

 

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]]> FHA Moves to Include On-Time Rental Payments for First-Time Buyers https://dreamhomeestate.com/fha-moves-to-include-on-time-rental-payments-for-first-timebuyers/?utm_source=rss&utm_medium=rss&utm_campaign=fha-moves-to-include-on-time-rental-payments-for-first-timebuyers Wed, 28 Sep 2022 19:44:23 +0000 https://dreamhomeestate.com/?p=22398 The Federal Housing Administration published a letter to lenders on Tuesday urging them to consider including a borrower’s positive rental payment history when applying for FHA-insured financing. The move is believed to be a boost for first-time home buyers to help to improve their credit scores when applying for a mortgage, the memo reads. “If […]

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The Federal Housing Administration published a letter to lenders on Tuesday urging them to consider including a borrower’s positive rental payment history when applying for FHA-insured financing. The move is believed to be a boost for first-time home buyers to help to improve their credit scores when applying for a mortgage, the memo reads.

“If you’re regularly paying your rent on time, that’s a good indication you will also pay your mortgage on time,” says Julia Gordon, Federal Housing commissioner. “We hope that adding this positive factor to all of the characteristics currently considered in an FHA credit evaluation will increase access to affordable FHA-insured mortgages for first-time home buyers.”

The FHA will consider positive rental payment history as the on-time payment of all rental payments over the last 12 months. Lenders originating purchase mortgages for FHA insurance will be required to obtain verification of the borrower’s timely rental payments and indicate it on their TOTAL Mortgage Scorecard, which the FHA uses to evaluate borrower credit history and mortgage application information when underwriting loans.

“This change makes FHA requirements more flexible and can help remove barriers to homeownership, particularly for those with nontraditional credit or thin credit files,” says Julienne Joseph, deputy assistant secretary for single-family housing.

The FHA’s move follows on the heels of an announcement by Experian, one of the main credit bureaus, earlier this month that its Experian Boost program would offer a way for consumers to add qualifying, positive residential rental payments directly to their credit file. Experian’s research has determined that 66% of its consumers will see an instant increase in their FICO score by factoring in on-time rental payment data. The credit bureau said consumers who would see the biggest improvement—of about 14 points—are those with thin credit files or low FICO scores.

In 2021, Freddie Mac announced a new program to help renters build up their credit profiles and help make them more creditworthy. The initiative provides a means for owners or managers of multifamily properties to report on-time rental payments to the three major credit bureaus.

The move was aimed at helping a portion of the more than 45 million U.S. adults who have no credit score.

(Magazine.Realtor)

 

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]]> Existing-Home Sales Slip Again, Yun Blames Mortgage Rates https://dreamhomeestate.com/existing-home-sales-slip-again-yun-blames-mortgagerates/?utm_source=rss&utm_medium=rss&utm_campaign=existing-home-sales-slip-again-yun-blames-mortgagerates Wed, 21 Sep 2022 20:14:00 +0000 https://dreamhomeestate.com/?p=22377 Existing-home sales slipped further in August as economists blame the “housing recession” mostly on higher mortgage rates, though home prices continue rising, according to newly released data from the National Association of REALTORS®. But while existing-home sales, which reflect transactions for single-family homes, townhomes, condos, and co-ops, fell a modest 0.4% month over month in […]

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Existing-home sales slipped further in August as economists blame the “housing recession” mostly on higher mortgage rates, though home prices continue rising, according to newly released data from the National Association of REALTORS®. But while existing-home sales, which reflect transactions for single-family homes, townhomes, condos, and co-ops, fell a modest 0.4% month over month in August, they’re down about 20% compared to a year ago.

“The softness in home sales reflects this year’s escalating mortgage rates,” says NAR Chief Economist Lawrence Yun. “Nonetheless, homeowners are doing well, with near-nonexistent distressed property sales, and home prices are still higher than a year ago.”

Home prices rose 7.7% in August compared to a year ago, according to NAR. The median existing-home sales price for all housing types increased to $389,500, with every major region of the U.S. posting hikes in home prices last month. But August did mark the second consecutive month in which the median sales price dropped from its record high of $413,800 from June. NAR’s report notes that follows a typical seasonal drop in home prices after they peak in early summer.

NAR existing-home sales chart

Here are additional key indicators from NAR’s August housing report:

  • Days on the market: Eighty-one percent of homes were on the market for less than a month. Properties typically remained on the market for 16 days, down from 17 days a year ago.
  • Housing inventory: Fell 1.5% month over month but is unchanged from last year’s levels. Unsold inventory is at a 3.2-month supply at the current sales pace. “Inventory will remain tight in the coming months and even for the next couple of years,” Yun says. “Some homeowners are unwilling to trade up or trade down after locking in historically low mortgage rates in recent years, increasing the need for more new-home construction to boost supply.”
  • All-cash sales: Accounted for about a quarter of transactions, up slightly from 22% a year ago. Individual investors and second-home buyers tend to make up the biggest bulk of cash sales. They purchased 16% of homes, which is up from 14% a year ago.
  • First-time buyers: Comprised 29% of sales, holding steady from last month and a year ago.
  • Distressed sales: Foreclosures and short sales comprised just 1% of sales, continuing a historically low level.

Regional Snapshot

Existing-home sales dropped on an annual basis in all four major regions of the U.S. in August. But month-over-month figures varied.

  • Northeast: Existing-home sales rose 1.6% month over month, reaching an annual rate of 630,000. However, sales in the Northeast are down 13.7% from a year ago. Median price: $413,200, a 1.5% increase from August 2021.
  • Midwest: Sales dropped 3.3% compared to the prior month, reaching an annual rate of 1.16 million. That’s down nearly 16% from August 2021. Median price: $287,900, up 6.6% from last year.
  • South: Existing-home sales held steady month over month but were down 19.3% from a year ago. Sales reached an annual rate of 2.13 million. Median price: $356,000, an increase of 12.4% from August 2021.
  • West: Sales rose 1.1% month over month but are down 29% compared to a year ago. Sales reached an annual rate of 880,000. Median price: $602,900, a 7.1% increase from last year.

(Magazine.Realtor)

 

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]]> Tips for Settling Into a New Home After a Move https://dreamhomeestate.com/tips-for-settling-into-a-new-home-after-a-move/?utm_source=rss&utm_medium=rss&utm_campaign=tips-for-settling-into-a-new-home-after-a-move Thu, 21 Jul 2022 02:34:13 +0000 https://dreamhomeestate.com/?p=22286 Buying a house is a major life milestone and worth celebrating. However, before you can enjoy your new home, you have to move in—which can take some time and effort. This quick guide covers the moving process from start to finish, providing the resources you need to streamline your transition and settle in quickly. Moving […]

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Buying a house is a major life milestone and worth celebrating. However, before you can enjoy your new home, you have to move in—which can take some time and effort. This quick guide covers the moving process from start to finish, providing the resources you need to streamline your transition and settle in quickly.

Moving to Huntington Beach? Contact the professionals at Dream Home Estates today!

Plan in Advance Before Making the Move

Advanced planning will simplify matters on the actual moving day.

If you’re moving out of state, consider financial elements like local property, income, and sales taxes in advance. It’s also a good idea to get pre-approved for a mortgage
in another state when buying property there.
● Hire a reliable moving team to get your belongings from A to B. For example, find out whether they are insured before hiring them.
● Follow best practices for packing your belongings, like decluttering first and setting aside a box of essentials for your first night in your new place.
● If you plan on getting a teaching job at your destination, get started on your Education degree today.

Get Your New Property Move-in Ready

Your new house will likely need a bit of TLC before you can comfortably settle in.

● Find a local handyman to take care of any small fixes needed to make the house more livable.
● Once that’s done, get a professional cleaner to clean the space from top to bottom.
● Find a local utilities provider, ensuring you are getting the best rates by comparing
them online.

Take Care of the Administrative Aspects of Moving to a New Place

Cross these pesky tasks off your to-do list as soon as possible.
● Switch your car’s license and registration to your new state at your local DMV.
● If you have kids, research relevant school districts and enroll them accordingly.
● Look up healthcare providers in your area, so you know where to go in case of an illness.

Make an Effort to Connect Emotionally With Your New Community

Feeling “at home” requires establishing a mental bond with your surroundings.
● Try unique ways to meet your community, like lift sharing and joining supper clubs.
● Join online networks to connect with those around you, like Nextdoor and MyCoop.
Moving to a new house is an exciting prospect. That said, it also requires some organization. Trust the tips above to help you through the process. You can then focus on the fun part—settling into your new place.

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]]> How to Upsize Your Home When Your Business Needs More Space https://dreamhomeestate.com/how-to-upsize-your-home-when-your-business-needs-more-space-2/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-upsize-your-home-when-your-business-needs-more-space-2 Mon, 11 Jul 2022 22:51:10 +0000 https://dreamhomeestate.com/?p=22262 As your home-based business continues to grow, your current living space might start to feel more and more cramped. Your enterprise is thriving, so it’s time to finally have that home office you’ve always dreamed about. Or perhaps you need a dedicated space to meet with clients or potential partners. Whatever your reasons, upsizing your […]

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As your home-based business continues to grow, your current living space might start to feel more and more cramped. Your enterprise is thriving, so it’s time to finally have that home office you’ve always dreamed about. Or perhaps you need a dedicated space to meet with clients or potential partners. Whatever your reasons, upsizing your home does not have to be a difficult or intimidating process. If you keep a few helpful tips in mind, you will soon find yourself living in the perfect space for furthering your entrepreneurial journey.
Value Your Current Home and Form a Budget
Before you can make a big move, you must first determine the sale value of your current home. This will help you determine your budget when you begin hunting for your next house. There are a number of online home value appraisal tools that can give you an approximation of what to expect.
Keep in mind that it can take quite some time to close the deal on your home after going to market. If you are in a hurry to move your business to a larger space, you might have to compromise on your asking price to finalize the sale quickly.
Write a Wishlist and Start Your Research
When you have a budget in mind, you can start searching for a home that matches your Wishlist. For the sake of accommodating your burgeoning business, the number of bedrooms in your dream house is of the utmost importance. You need sufficient space to comfortably satisfy your family while also having a dedicated home office room with plenty of natural lighting. Some websites offer 3D virtual home tours so you can determine if a property’s layout meets your criteria. Some other features you should look for might include:
• Convenient location
• Appealing outdoor space
• Accessibility
Contact a Real Estate Agent and Seek Guidance
You can accomplish a lot of research on your own using free online resources, but a real estate expert from the Dream Home Estate team can be a serious boon when trying to navigate the complexities of homebuying. Your agent can help you understand credit requirements and loan options that you might have overlooked otherwise. Of course, a realtor can also help you track down the perfect home and shed some light on closing costs. Experts list potential closing problems as a major reason to use a real estate agent when buying a home.
Insure Your New Home and Purchase a Warranty
Because buying a bigger house is a large investment, it is extremely important to become educated about insuring your home and the costs involved. Homeowners’ insurance can protect your finances in a number of situations including instances of structural damage or theft, but it does not cover cases of home systems or appliances breaking
down.
A home warranty is an annual renewable contract that provides coverage in the event of damage to your heating, cooling, electrical, or plumbing systems. There are many policy options out there, so take the time to read home warranty reviews to find the right provider for your specific needs.
Upsizing is part of your natural progression as a growing business owner. As your clientele expands and your assets increase, your means and your needs both grow as well. Because your home is your base of operations where you earn your livelihood, it is vital that you spare no effort to find the perfect space to continue fostering your family and your business.

(Cherie Mclaughlin)

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]]> Rapid Rise in Mortgage Rates Stalls https://dreamhomeestate.com/rapid-rise-in-mortgage-rates-stalls/?utm_source=rss&utm_medium=rss&utm_campaign=rapid-rise-in-mortgage-rates-stalls Wed, 06 Jul 2022 04:33:37 +0000 https://dreamhomeestate.com/?p=22246 The quick rise in mortgage rates over the last few weeks is taking a pause. The 30-year fixed-rate mortgage averaged 5.7% this week, dropping from last week’s 5.81%, according to Freddie Mac. Still, rates remain well above where they were a year ago, when they averaged below 3%. Higher rates have been sending shock waves […]

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The quick rise in mortgage rates over the last few weeks is taking a pause. The 30-year fixed-rate mortgage averaged 5.7% this week, dropping from last week’s 5.81%, according to Freddie Mac. Still, rates remain well above where they were a year ago, when they averaged below 3%. Higher rates have been sending shock waves through the housing market, potentially adding hundreds of dollars to monthly mortgage payments and spooking interested home buyers.

Since the beginning of the year, home buying has cost about $800 more every month, Nadia Evangelou, senior economist and director of forecasting at the National Association of REALTORS®, wrote on the association’s blog. The higher mortgage rates have hurt affordability, and fewer middle-income home buyers can now afford to buy homes, Evangelou notes.

“The rapid rise in mortgage rates has finally paused, largely due to the countervailing forces of high inflation and the increasing possibility of an economic recession,” says Sam Khater, Freddie Mac’s chief economist. “This pause in rate activity should help the housing market rebalance from the breakneck growth of a seller’s market to a more normal pace of home price appreciation.”

Freddie Mac reported the following national averages for the week ending June 30:

  • 30-year fixed-rate mortgages: averaged 5.7%, with an average 0.9 point, dropping from last week’s 5.81% average. Last year at this time, 30-year rates averaged 2.98%.
  • 15-year fixed-rate mortgages: averaged 4.83%, with an average 0.9 point, dropping from last week’s 4.92% average. A year ago, 15-year rates averaged 2.26%.
  • 5-year hybrid adjustable-rate mortgages: averaged 4.5% this week, with an average 0.3 point, rising from last week’s 4.41% average. A year ago, 5-year ARMs averaged 2.54%.

Freddie Mac reports commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.

(Magazine.Realtor)

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]]> Mortgage Rates Rise Modestly to 5.81% https://dreamhomeestate.com/mortgage-rates-rise-modestly-to-5-81/?utm_source=rss&utm_medium=rss&utm_campaign=mortgage-rates-rise-modestly-to-5-81 Fri, 24 Jun 2022 19:41:22 +0000 https://dreamhomeestate.com/?p=22200 Mortgage rates inched closer to 6% this week. The 30-year fixed-rate mortgage averaged 5.81%, up modestly from 5.78% last week, according to Freddie Mac. Borrowing costs are mounting higher and higher for potential home buyers, who now find themselves squeezed both financially and by low inventory. “Since the beginning of the year, home buying has […]

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Mortgage rates inched closer to 6% this week. The 30-year fixed-rate mortgage averaged 5.81%, up modestly from 5.78% last week, according to Freddie Mac. Borrowing costs are mounting higher and higher for potential home buyers, who now find themselves squeezed both financially and by low inventory.

“Since the beginning of the year, home buying has cost about $800 more every month,” Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS®, writes on the Economists’ Outlook blog. “These higher mortgage rates hurt affordability, and middle-income home buyers can afford to buy fewer homes. Even though inventory has increased 13% since January, not all home buyers can afford to buy these additional homes. In fact, in order to be able to afford those homes, it appears that buyers need to earn more than $150,000 per year.”

Still, rising rates are tamping down previously frenzied demand, which may be a positive thing for the market. “The combination of rising rates and high home prices is the likely driver of recent declines in existing-home sales,” says Sam Khater, Freddie Mac’s chief economist. “However, in reality, many potential home buyers are still interested in purchasing a home, keeping the market competitive but leveling off the last two years of red-hot activity.”

Freddie Mac reports the following national averages for mortgage rates for the week ending June 23:

  • 30-year fixed-rate mortgages: averaged 5.81% with an average 0.8 point, up from last week’s 5.78%. A year ago, the 30-year fixed-rate mortgage averaged 3.02%.
  • 15-year fixed-rate mortgages: averaged 4.92% with an average 0.9 point, up from last week’s 4.81%. A year ago, the 15-year fixed-rate mortgage averaged 2.34%.
  • 5-year hybrid adjustable-rate mortgages: averaged 4.41% with an average 0.3 point, up from last week’s 4.33%. A year ago, the five-year ARM averaged 2.53%.

Freddie Mac reports commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage.

(Magazine.Realtor)

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]]> Homeowners Skeptical Over iBuyers, But Still Curious https://dreamhomeestate.com/homeowners-skeptical-over-ibuyers-but-still-curious/?utm_source=rss&utm_medium=rss&utm_campaign=homeowners-skeptical-over-ibuyers-but-still-curious Thu, 23 Jun 2022 19:58:07 +0000 https://dreamhomeestate.com/?p=22191 Sixty-six percent of homeowners recently surveyed say they don’t believe iBuyers yield higher sales prices than traditional sales. However, a nearly equal number say they would consider using an iBuyer due to the flexible options for selling, a new survey from Clever Real Estate finds. The number of iBuyer companies and services has grown over […]

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Sixty-six percent of homeowners recently surveyed say they don’t believe iBuyers yield higher sales prices than traditional sales. However, a nearly equal number say they would consider using an iBuyer due to the flexible options for selling, a new survey from Clever Real Estate finds.

The number of iBuyer companies and services has grown over the last few years, offering buyers a way to sell their house quickly by receiving an instant cash offer and setting their closing date.

While survey respondents mostly said they don’t believe iBuyers offer more at closing, they said they would be willing to accept an average of $45,400 less for their home in order to sell it instantly and choose their closing date, the survey finds.

But 72% of homeowners would still want to work with a real estate agent when requesting offers from iBuyers. Some brokerages have added iBuying arms, such as Keller Offers, RedfinNow, RealSure and others, to their companies to allow agents to continue to guide these instant-offer transactions.

Sixty-five percent of homeowners say they would consider selling their home to an iBuyer. Millennial respondents were more open to the idea (72%) versus baby boomers (52%).

That said, even though the iBuyer real estate model is now nearly a decade old, only 27% of about 1,000 homeowners surveyed by Clever Real Estate could correctly define what an iBuyer is. The sales strategy is still relatively uncommon; iBuyers comprised just 1.3% of home sales in 2021.

“The sentiment around iBuyers is complicated because the average American homeowner isn’t completely against them, but also doesn’t know much about them,” the Clever Real Estate survey says.

(Magazine.Realtor)

 

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