While the real estate industry is wringing their collective hands over how to attract millennials to the market, the 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 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. Truth be known, the boomer generation lag millennials in the home-buying market by only 1 percent.
However, this is only half the story. When it comes to sellers, the baby boomer generation is large and in charge, representing 43 percent of home sales. If you are a boomer, 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. Several factors come into play, the main one being the loan balance on your current mortgage. This will determine if you need to sell your current home before entering into a contract to buy your new one.
The “should I sell or buy first” predicament has several solutions, depending on how you answer the question above. But if you need to sell before buying, or attempt back to back closings, planning ahead and having the right team, anchored by a solid Realtor is a definite must.
If you’ll be buying another home, get the financing going
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.
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.
Choosing the right lender is very important, make sure to compare more than one. Though rates and terms are important in the long run, the mortgage process requires someone whose method of communication works well with yours.
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.
We understand the boomer generation typically has high expectations of those they choose to represent them and it’s important that you never compromise and that you make these expectations clear to any agent you interview. Look for a solid Realtor to quarterback your team through the sales process, a good realtor will coordinate all areas of the purchase to make it as smooth and gentle as possible. Sure, all real estate professionals should provide estimable customer service but, sadly, they don’t. By choosing the correct agent and communicating your expectations, the process, though always emotional, will be smooth.
Finally, we know 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.
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