From the desk of
Who is going to buy
my house, or condo you ask?
Call Rick Gomolka to find out
or read below!
What are the demographic changes going on right now that will make all the difference in the world between your property sitting on the market for a long time or selling quickly?
Millennials are now in their 30s. Looks like the pizzazz of city living is fading and now it's time to buy a home … out in the suburbs!
What does this mean? Well there are three types of buyers in this group. It directly correlates to the type of home you have. But there is one thing for certain...
MANY OF THESE HOME BUYER'S HAVE NO TRADES EXPERIANCE! Which means they will pay through the nose to get things fixed since they will be shy on picking up a hammer or paintbrush! We are running out of enough handy work people!
Type 1: Low income: Are using every tool between lotteries for low income housing, to taking classes for down payment grants, to sacrificing on buying tired homes. You might anguish if your offer falls apart unless the buyers are very carefully qualified.
Type 2: Moderate income: They are fighting tooth and nail to come up with the down payment, which means they do not have extra money to fix up your home if there is differed maintenance, cosmetic or otherwise. It's better to push the envelope on price and give the buyer's exactly what they want in a clean ready to move in house and for the buyer to try to get a larger mortgage than the buyers pouring money into your home they don't have. Remember spotless cleaning, paint and hardwood floors go a long way!
Type 3: Financially strong buyers: They are savvy, don't want their time wasted because they know their time is their commodity. They value the agent to do their research for them and bird dog what is out on the market or preview the property and communicate it back to them. Your house should be pre-inspected by an inspector so everything sails through their inspection otherwise you will be negotiated by the Buyer's agent and you will loose equity! It will be cheaper to fix it before the inspection, than pay a premium later.
According to a the National Association of Realtors® report on trends in home buying and selling by generation segmented buyers, 17% of buyers under the age of 35 purchased a city residence, down from 21% a year earlier, so that means 83% of the buyers are looking in the suburbs! This report took housing data from Mid (July) 2014 through end of June 2015 and looked at income data from the end of 2014.
Forecasters say the lackluster growth of Millennials setting up homes in the city may be fading-due to skyrocketing prices in Boston. Suburbs created a strong pull on buyers of all age ranges. About 51% of millennial home buyers gobbled up homes in the suburbs compared with 58% of Generation Xers (ages 36 to 50); 51% of baby boomers ages 51 to 60; 53% of boomers ages 61 to 69; and 42% of the Silent Generation (70 and older).
Millennials make up the largest share of home buyers at 35%, according to the report. That should come as no surprise, given the unprecedented size of their generation (83 million) and the life changes that are motivations for buying a home. Almost 66% of millennial buyers are married, while almost 50% have children living with them. Therefore they probably are in need of more space.
Baby Boomers are moving back into the city. Many are extreme downsizing and buying a place in Boston and Florida! Taking advantage of low rates and trying to figure out where to put the cash from their home they just sold in the burbs! That's why the high rise condos are doing well too!
Investors take note. ALMOST EVERYWHERE in the city in extreme close proximity to public transportation is HOT HOT HOT for renters.