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The combination of low housing inventory, rising home values and higher mortgage interest rates makes the current real estate market extremely challenging for potential buyers. Even with a forecasted cooldown in some cities, it won’t happen fast enough for buyers who feel priced out of the market.
So, what can real estate professionals do to help buyers cope with home prices that are still rising? It’s an excellent time to shift your approach to selling and ensure you have up-to-date knowledge and communication skills to help buyers turn their dreams of homeownership into reality.
Use the following three tips to cultivate existing contacts, sell overlooked listings, and refer buyers to sources that offer various financial assistance. Utilizing one or more of these strategies may dramatically improve your chances of getting qualified buyers in homes that fit their needs and budgets.
Maintain regular contact with potential buyers
If you previously worked with a potential homebuyer who couldn’t qualify for a mortgage or get a purchase offer accepted, maintain a positive relationship with them. You might send helpful emails or call them periodically to check in.
For instance, if a hopeful buyer doesn’t have enough credit or savings for their dream home, refer them to personal finance articles or podcasts with solid tips for boosting credit or sticking to a budget. As their financial situation improves, you’ll be the first agent they think to contact when the time is right to house hunt.
Sell overlooked properties
Sometimes buyers overlook lower-priced homes that need renovation because they don’t know who they’d contact to do the work or how much it would cost. Instead of letting buyers ignore potential gems, be proactive by getting remodeling estimates from several contractors. Ask each for multiple quotes based on doing a little or a lot of renovation, as needed.
If possible, get plans and images of the completed work to help potential buyers visualize the improvements and their lifestyle in the upgraded property. Having a range of estimates for potential buyers to review could make the difference between them passing on a property or making an offer.
Get familiar with down payment assistance
If a potential homebuyer doesn’t have enough savings for a down payment and closing costs, help them find payment assistance programs. Many states, counties and cities offer grants, low-interest loans, deferred-payment loans or forgivable loans to make homeownership more affordable.
Also, some mortgage lenders offer assistance for first-timers who agree to complete a homebuyer education program. Be aware that if you haven’t owned a home in the past three years, you may still qualify as a first-time homebuyer for a primary residence. The assistance can get applied to a conventional mortgage or a government-backed product, such as an FHA, VA or USDA loan. Plus, buyers can use multiple sources of financial assistance.
How to find down payment assistance programs for potential buyers
- Check your city or municipality website and ask local lenders.
- Visit your state’s housing authority website and contact HUD-approved counselors aware of various assistance programs.
- Visit HUD.gov/states to learn more about housing programs that could turn potential buyers into homeowners.
By educating potential buyers and providing current information, you’ll set them up for a successful real estate purchase when the time is right.
Laura Adams is the Senior Real Estate Analyst at Aceable, a digital education platform that exists to provide unparalleled, accredited training and tools, connect with Laura on LinkedIn or Twitter.
