Happy National Homeownership Month to all of you! This year has certainly been like no other, but we’re very appreciative of all our great customers. Now, more than ever, the Placer Title Company team is here to be the partner you and your buyers/sellers can trust.
Despite the challenges of COVID-19, there is much optimism nationwide— and in California— that real estate will quickly bounce back. Recently, LendingTree published a survey suggesting prospective homebuyers were more likely to buy a home now than they were before the pandemic started.
That’s the good news. The other part of the survey showed there were plenty of concerns about money, especially among millennials and/or first-time homebuyers. Even before the pandemic, that generation acknowledged being overwhelmed by the homebuying process. That is especially true in California. A recent analysis by the Sacramento Bee found that 40 percent of young adults (aged 21-30) in the area were living with either a parent or grandparent.
That figure equates to nearly 100,000 people. We’re not saying that all those young adults are in the position to buy right now, especially given the last few months, but Placer Title believes it’s our role to make sure that we’re doing everything we can to educate the younger generations on the homebuying process. Even before the pandemic, millennials acknowledged saving for a down payment was a big barrier to their homeownership dreams.
You’re already talking to this generation on social media, so here are three additional tips for how to connect with them. (For starters: Don’t remind them they are already in their 30s.)
They don’t need 20 percent down.
Along with sharing the first-time home buyer programs that are out there, let them know that some down payments can be as low as 3 percent. Nearly three-quarters of millennial home buyers in the Clever Real Estate Survey plan to put down less than the age-old wisdom of 20 percent, but the reality is for buyers under 30, the average down payment is 8 percent.
Understand their preferences might not be your preferences.
Affordability matters to millennials. In addition, what one generation might consider a deal breaker (like purchasing a house near a busy interstate), millennials are more open minded to less than ideal situations.
Walk them through their credit rating.
Sanjiv Das, the CEO of Caliber Home Loans, wrote in Marketwatch earlier this year that millennials might start the homebuying process without understanding their financial history. His company believes helping millennials with financial literacy is key.
Together, we can help buyers of all ages realize the dream of home ownership this month beyond. Please reach out to us anytime you and your customers need a friendly expert to explain the title and escrow process and make sure their closing gets done right.