The Real Estate market is poised for first time home buyers. Affordability of own home ownership has never been greater and many Renters are now finding that home ownership makes better financial sense.
I found an interesting real estate article where the author shared Millennials are slow to enter the housing market.
The age group of Millennial home buyers is deemd to be the generation of the late 70's early 90's. If this age group doesn't buy, Generation Xers can’t move up, and if they can’t move up, then Baby Boomers can’t downsize. The future of the real estate market remaining stimulated is connected to first time home buyers!
How many times have you heard this phrase from a "youthful" first time home buyer......"Before we make an offer and move forward, we want our parents to see the house".
- Case in point, I had a recent showing on one of my Lake Charles Homes for Sale. The agent called and said her buyers were ready to make an offer and would be sending it to me for $xxx,xxx. Another day passes and no offer arrives. Then I got the call from the Buyer's Realtor stating that the Buyers wanted their parents to see the house before they submitted the offer. After the second showing the Buyer's offer was received and it was $20,000 below list price and $18,000 lower than the offer indicated by the Realtor initially after the first showing!!!
The Buyer's Realtor tried to reason with her buyer's that the offer was low and would probably be rejected. Guess these young Buyers thought Mommy and Daddy had better guidance than the Realtor. Yes, these first time home buyers risked the Seller rejecting the offer (which was the Seller's response to a ridiculous offer).
- Another example...I recently had a newlywed couple who as first time home buyers contacted me to start viewing homes and wanted to take advantage of a down payment assistance financing with a local bank. The clock was ticking because this bond program with down payment assistance is going away in September!
First weekend of viewing homes we found a house that was a good buy and newly listed. I knew it would not last and prepared them that it would probably not last the weekend and recommended a reasonable offer that would include the closing cost assistance. Of course they wanted to think about it.....and after 24 hours they decided they wanted to make an offer. So we did and we then received a counter offer They waited 24 hours to think about the counter and decided to pass on a $115,000 house. They missed out on this house over $2,000 which may have only been $7 increase in their note each month!
One week later the buyers called me to ask if the house was still available. Nope, it went under contract just like I predicted. Second time viewing properties the buyers brought along their mother and their aunt The buyers decided they wanted to move forward with the last house we viewed and their Aunt told them what to offer! The buyers rejected my advice and made a low-ball offer on the house Of course we received a counter. Then 2 days later before signing the counter, I received a text asking if they could show the house to "Daddy". Ultimately, the Buyers listened to Daddy and decided the house was not worth the price of the counter.
Real estate is a buisness transaction.
Purchasing a home is a big step and a major decision. Who is the real buyer You or Your Parents?
Unless Mommy and Daddy are going to be paying your Mortgage Note each month, the home purchase is your decision. Once you decide to move out from under the roof of your parents, you are in control of your own money and finances.
No wonder the figures show Millennials are slow to enter the housing market.....they are still under the thumb of parental influence!
For more information on Lake Charles Real Estate, visit my website. You can search homes for sale in Lake Charles, Louisiana, and view up to date information on Lake Charles Subdivisions, Neighborhoods
If you are planning a move to or from the Lake Charles, LA area, I can help! I am a full time Realtor licensed by the Louisiana Real Estate Commission and am affiliated with:
4410 Nelson Road, Lake Charles, LA, 70605 USA
337-478-1578 or 337-499-9592
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