How much do you know about the Buying Process?

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Buying

First-time, Second-time, Multi-time Buyer

Besides buying a home what is common between all these individuals?  In my opinion, it is likely they all may not fully know or remember what happens during the buying process.  Sure, most know you get an agent and a lender, look for a home, find your dream home, negotiate an offer, and move in.

This is correct, but there are so many other things that go on in each of these stages. I am not going to cover the minutia of the stages, but you and your agent should always review the complete process and talk through current circumstances (both yours and the market).

“Why?”  Well, being an information driven person, let us review some facts:

·       Owner tenure estimated at 13 years (2018)

·       Average age of a first-time buyer 33 (2020)

·       Average lifespan 79yrs (2020)

Using bad math and a little logic to make a point, if you own homes for 46yrs, it is likely you will purchase 3-4 during your lifetime.  In addition, I will argue it is likely the first home’s tenure is closer to 7 years as a lot of change is happening in those early years.  I will also argue the same for the last home, but I can not find data to support this guess.  This leaves 32 years of ownership for those 1-2 homes in the middle.

Okay back to the point, you are likely going to do this 3-4 times in your lifetime!  Yes, lifetime.  I do not know about you, but the first two houses I bought, I had no idea what the process was nor do I remember going through them.  If you ask about my offers or contracts, I vaguely remember how much we paid.  Fortunately for me, I had great real estate agents for both transactions, and I am sure they talked me through all it.

A friend asked what makes me a good agent, and before I responded they said, “It’s because you are good with data.”  My response back was, I think anyone can look at surrounding listings and make a decent guess at what the value of a home should be.  What I think I am good at, is explaining the process and then helping my clients negotiate through it.  My goal is to manage all the stressful components of the process into consumable chunks, so my clients can act with confidence in the decisions they will have to make during it.

With that said, here are a few articles that cover the process in more detail. 

·       Short presentation covering the buying process in detail.

·       National Association of Realtors® flyer about the buying process.

Finally,  I have heard so many people say they had a bad experience with their last agent, which is why they are working with someone different.  Please remember, you are paying your agent and you have the right to switch, even if you are under exclusive agency agreement (contract) with them.  I know it is hard to fire someone, but why work with someone you do not trust or like. 

Real Estate Agents are among the least trusted professionals you will encounter, with only 1 in 4 people having Trust in them.  Knowing this pains me and it upsets me when I hear stories about bad agents.  Help me fix this by not employing them.

Anyway, thanks for your time.  If you’d like to connect or share your thoughts, I can be reached via email at craig@craigtheagent.com.

 

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Additional articles if you are interested:

https://magazine.realtor/daily-news/2019/01/14/homeownership-tenure-at-highest-level-in-18-years?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+DailyRealEstateNews+(Daily+Real+Estate+News)

https://www.prb.org/u-s-homeownership-rates-fall-among-young-adults-african-americans/

https://www.nar.realtor/blogs/economists-outlook/how-long-do-homeowners-stay-in-their-homes

https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers

https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics

https://www.nar.realtor/sites/default/files/documents/2020-generational-trends-report-03-05-2020.pdf