In September, the number of homebuyers who purchased real estate in The United States was the highest it has been at since the start of the decade. Although this level of interest in real estate is the highest it has been at, many experts believe that the interest level will remain low as conditions across the country are gradually improving. While homebuyers have always historically tended to take a long time to purchase real estate, the current interest level being experienced now is unprecedented. As such, this report examines the factors which are likely to affect sales volume through the end of the year.
As mentioned above, house buyers are turning to real estate investors for more capital in real estate repairs and maintenance. Recent increases in house buyers buying from real estate investors and builders have resulted in a sharp reduction in house rehab commissions for most house builders in the United States. According to national real estate investors association estimates, house building construction spending has decreased approximately twenty percent over the past five years. As a result, these contractors are finding buyers more appealing due to lower hou se rehab commissions and labor costs. Check out this: davidbuyshouses.com for details on cash home buying
As such, fewer real estate agents are helping clients buy houses. However, recent changes to real estate investing and selling commission laws may make it harder to sell homes under these new commissions. For example, starting in January 2021, sellers will be required to pay a one-time twenty-percent commission fee to their real estate agent of choice instead of paying a fixed percentage of commission for all sell transactions. The purpose of this fee is to encourage sellers to price their houses less than they would without these fees. Currently, only six states (Delaware, Georgia, Minnesota, New Hampshire, Oregon, and Utah) currently have this law in effect.
The decline in house building also affects home repair costs for house buyers. Most real estate investors and home builders have reduced their repair costs due to the decreasing demand for homes. In turn, fewer repairs have been completed resulting in shorter time frames for projects. Consequently, repairs take longer to bring up to code and in some cases, must be continued or the house buyer will not qualify for financing at all. Buyers will find it more attractive to pay cash house buyers' prices for house repairs as a way to reduce their overall house purchase cost.
The final factor affecting house buyers' ability to purchase now is the current state of the national housing market. Since there are more homes on the market than buyers want, sellers are forced to accept less money than their asking price in order to close sales. Additionally, builders are struggling to get rid of unsold homes which have increased their inventory. This means that lenders are now offering higher loan-to-value (LTV) than ever before in order to help sellers cover their closing costs. Buyers will find it more attractive to pay cash house buyers prices than to cover their interest costs with mortgage loans that have increased in recent times. When they choose to foreclose, they will no longer be responsible for financing the increased closing costs that were used to finance the purchase. You can view here for more about home buying.
While the number of distressed properties continues to rise, there has been a marked increase in the number of qualified buyers. This means that the number of properties being offered for sale has increased. As a result, qualified buyers are able to buy more homes. This has created an environment where prices have become competitive. Because of this competitive environment, it is very likely that a cash home buyer will save more money than they will pay for their house purchase when buying today. If you are a distressed home seller, this may be the perfect time for you to contact a cash buyer's agent and start looking for your dream home. You can check out this link: https://edition.cnn.com/2020/03/19/success/real-estate-coronavirus/index.html to get more info on the topic.