Home ownership in the U.S.A. remains low even though the real estate market continues an upward climb, and plenty of homes are available to buy and sell. Many people are qualified to buy but are still hesitant to avail themselves of what may be an excellent opportunity. One wonders why these potential homeowners are not participating.
It cannot be that so many people do not want to own a home or are not aware of the value of owning property, because buying a home is well within their reach. What then could be the reason they are hesitating?
1. Fear of inability to secure a loan
Many potential owners have heard that qualifying for a mortgage is so difficult even with good credit, that they have just given up on buying a home. This was recently supported by JP Morgan and Wells Fargo reporting their volume dropped by about 70. Supposedly, credit is becoming easier to obtain at present, although not as easy as in the past. However, other types of loans are increasing as alternate options.
2. Not aware of affordability
Many potential buyers may not realize that home prices are more affordable now, although the news was published quite a bit. If someone compares projected prices into the coming years, this may also foster the fear that homes are not affordable. More importantly, couples or individuals should become aware of how low monthly payments may be at present. Some people may discover they are paying more for rent than they would to own a home.
3. Fear of scams
Mortgage and real estate scams have not gone away. Actually reports indicate many new opportunities have grown around abandoned and vacant homes. Some consumers are wary and do not trust certain sources of ads such as Craigslist and big banks. At present, consumer mindset appears to assume the worst instead of the best and consequently, they are far more cautious. They are doing far more research than they previously did upfront.
4. Unsure of long term residence
In today’s world, business markets are changing rapidly, people are increasingly mobile and this adds up to more uncertainty concerning where jobs will be located in future years and how people will migrate toward new employment. Those facts could make potential home buyers more unsure of what steps to take. They may need to realize that a home purchase now may mean they ability to buy their dream house later when they decide where to settle, due to the build-up of equity. Also, property purchased now can become a vacation or retirement home or a rental unit for extra income.
5. Poor follow-up
The real estate profession as a whole is not known for good customer service in most areas. Despite communication technology, many would-be buyers may just give up because of the difficulty in making connections with a realtor or mortgage lending agency. In the meantime, properties languish on the market and become stigmatized as people believe something is wrong with the house because it appears unwanted.
6. Customer confusion
When too many agencies are shouting for attention, consumers may become confused as to which one is best. If a potential buyer becomes confused, they are paralyzed and unable to make a decision, and sales are lost. Real estate professionals can overcome this by making a personal contact. All of the above reasons may help to answer the question of Why Some Home Buyers Aren?t Buying. A good realtor who takes the time to follow up on leads and explain all aspects of home buying to potential customers can make a fortune in today’s market.