Todays buyers may be more educated than ever, but they still need guidance and support from REALTORS® to help them navigate the buying process.
By Regina Ludes
Darlene Sheets, CRS, with Future Home Realty in Seminole, Florida, recalls working with a client to find a home that was move-in ready. He worked as a building contractor and had renovated his first home. He did not want to update a new house, even though he had the skills. He said hed rather pay more for everything to be done, she recalls.
That mindset is increasingly common in Sheets market, regardless of buyers age and income level. They dont want to do more work after they purchase a home, she says.
According to recent research by the National Association of REALTORS®, 92 percent of homebuyers use the Internet in some way during the home search process, and 43 percent begin their home search by looking at online listings. With so much information available online, many home shoppers know what is available on the market, and have specific ideas about what kind of home they want and where they want to live. They also have strong opinions about what they expect when working with a REALTOR®.
But just because buyers are better educated doesnt mean they are better prepared to deal with the paperwork or negotiate a purchase agreement on their own. REALTORS® who are knowledgeable about the local housing market and are supportive throughout the process can create satisfied customers for the long term.
The Economics Factor
Buyers housing decisions are driven in large part by personal economics, says Sheets. For example, many first-timers would like to buy a home but can only afford one at a lower price point with the lowest possible monthly payment. Many of these young buyers still carry a lot of college debt and dont have a lot of money for housing costs, Sheets explains. Multigenerational households have increased in her market as buyers combine households with other family members to share expenses.
Newly-constructed, eco-friendly communities are cropping up in several Florida markets and appeal to older adults who are concerned about energy efficiency and lower energy costs. Mature clients are more interested in eco-friendly homes because theyre tired of paying $300 for electricity every month, Sheets says. These buyers have already done their homework online and ask a lot of questions, such as How much is air conditioning? How much is the electric bill? I didnt get these types of questions 10 years ago, Sheets says.
Sheets client Nancy Plunkett recently put a deposit on a three-bedroom townhome at a new eco-friendly development called Eco-Village. Like many buyers, Plunkett explored her options online before contacting Sheets, so she had clear ideas about what she wanted in her next home. I wanted to be in a small community that was within walking distance to restaurants and shops, and close to a running trail and the waterfront, she says. The eco-friendly features at Eco-Village also appeal to her desire to live more economically and in an environmentally responsible manner.
Plunkett had interviewed several real estate agents and says many of them lack good listening skills. Often they already have an idea of what is right for you before finding out what you are looking for. She met Sheets through a local running club and appreciates the agents candid, laid-back approach.
I had not bought a home in 25 years so I did not know what to expect until Sheets explained everything to me. She knew what I needed to know before I knew what I needed to know.
{loadposition clientisright1}
{loadposition clientisright2}
Location, Location, Location
Before starting their home search, Luisa Rivera and her husband, another Sheets client, knew they wanted to work with someone they could trust, who would look out for their best interests and who understood the local market where they wanted to buy. It was also important to the couple that Sheets be able to work quickly within a tight deadline since the couples apartment lease was expiring at the end of December 2014. We felt an urgency to get everything done, and I wanted to be sure we had a place to move into, Rivera says.
The couple had two main criteria: first, to stay close to their current location where they were familiar with the local shopping, restaurants and attractions, and where many of their friends lived, and second, to find a home in move-in condition. The second factor proved more difficult because of their budget limitations. Many homes in our price range had outdated bathrooms and kitchens, and the foreclosures were in terrible condition, Rivera says. After six weeks of aggressive house hunting and fighting off a competing bid, the couple closed on a three-bedroom ranch-style home in Largo, Florida, in December.
Looking for Value
Kathy Magliochetti, CRS, with Calcagni Real Estate in Plantsville, Connecticut, says many buyers are looking for the same thing. They expect to have updated baths and kitchens with granite countertops. They want to move in and enjoy their home, and they are willing to pay more for that privilege, Magliochetti says.
Location is an important consideration for many buyers, especially young families who want to move to safe neighborhoods with quality schools for their children. But they dont want to waste their time driving through neighborhoods or visiting open houses, so they search listings on Zillow and Trulia. When they get overwhelmed with information, they look to me to sort through all of that. They need to be updated because the market changes constantly, and they expect me to be on top of things, Magliochetti says. Buyers want to find the best value for their dollar, and they appreciate a real estate agent who can help them do that.
That is especially true for Magliochettis client, Joseph Grippe, an attorney in his 30s who wants to move up to a larger home where he and his wife can raise their family. With that goal in mind, location is a high priority, he says. We know we want to live in the next home for a long time, so we want to find a family-friendly neighborhood that offers good schools and has sidewalks and yards so our kids can play there and be safe.
Since most of his family lives far away, Grippe wants a large home with open space to entertain family members and friends who visit from out of town. Weve looked at about 10 homes so far. While many of them met our criteria, none of them were ideal for us, so we are taking our time to find what we want. We think we can find our ideal home by spring 2015 when more homes come on the market, Grippe says.
Before starting his home search, Grippe says it was important to him to work with a REALTOR® who has a thorough knowledge of the area where he was looking to buy and who could help negotiate the purchase agreement. He appreciates Magliochettis flexibility to meet around his and his wifes busy schedules, and he valued her personal touch and responsiveness when visiting properties. She lets us look around a home first before asking us what we think of it. Only then does she offer her opinion.
Long-term Expectations
Todays buyers expect to live in their homes for a long time, so they search for homes they can grow into, says Judy Reynolds, CRS, with Evergreen Realty in Sterling, Massachusetts. Some buyers appreciate the custom options available with new construction because they can design a home to suit their needs for the long term. One client couple Reynolds worked with recently is having a two-story home built that will contain spacious walk-in closets on both levels positioned one above the other so if the need ever arises, they can install an elevator in those spaces. They wanted to be sure to stay where they were, no matter what, because they didnt plan on moving again, Reynolds says.
Buyers also find it easier and more cost effective to add eco-friendly features, such as solar energy panels, to a custom-built home than retrofit an existing property. Those special features can make the home more appealing to prospective buyers if the owner decides to sell down the road, says Reynolds.
The home-buying process is more complicated and time consuming than it used to be. The financing part can be tortuous with all the paperwork, inspections and negotiations that take place, Reynolds says. It takes a lot of guidance from a REALTOR® to prepare buyers for the bumps along the road.
Find information about the CRS Listings Course at the CRS website.
