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Maybe people that have lost jobs since they were pre-approved and failed to tell their mortgage company?
I've been thinking it's mostly job loss related too along with various other financial catastrophes caused by covid. The realtor at one new house we looked at after being relisted said the original buyer couldn't sell their condo in the amount of time stipulated. I think lots of folks are looking for more space right now, so condos might not to be so easy to unload.
Whatever the cause, it must create a real headache for sellers when this happens. Could create a ripple effect too if interferes with the purchase of their next house putting that next seller in the same boat.
I’ve been actively looking for a new house since before the world as we know changed and casually for a lot longer. Something I’ve noticed lately is what seems to a larger than usual amount of homes getting relisted after a sale falling through. Just saw yet another one pop up this morning. It was a “hot home†with lots of interest the first time. Not sure if this is an actual trend or just something unique to the homes I’ve been looking at.
My buyers lost out on a home they really wanted because the buyer that got the home paid WAY OVER listed price.
However, we put in a back up offer. Turns out the first buyer purchased the home sight unseen. When they did get to see it, they didn't like it. Our back up offer was less than the accepted offer but was accepted and so we rolled in to spot #1. Sellers had accepted our back up offer so my buyers were able to get the home.
Two things for buyers to ask...did the buyer actually SEE the home or did they buy, sight unseen? And, will the seller accept a back up offer?
Guarantee you the lenders are doing employment checks right up to closing.
My BIL was to close on his house (seller) and the lender pulled out because the buyer is a contract worker and the contracting company would not guarantee the job due to covid. So BIL had to wait out while the buyer tried his best to work things out. The moment the contract was up, they received a new offer. Hopefully, it will all work out.
BIL was pretty upset with bank because he felt that the pre-approval letter was worthless.
Can some agents here share insight on where buyers are coming from since market still seems so hot even during this pandemic with high unemployment and economic uncertainty. Who's buying the houses? Investors? Out of state transplants? First time home owners? Upgraders?
Can some agents here share insight on where buyers are coming from since market still seems so hot even during this pandemic with high unemployment and economic uncertainty. Who's buying the houses? Investors? Out of state transplants? First time home owners? Upgraders?
Pick an unemployment number. Even if it is 20%, that means there is 80% employment, and many consumers who are willing and able to buy. Even at that, unemployment has hit the lower income workers much harder, at this point, than the professional worker segment.
Economic uncertainty does not change the fact that there are always people whose housing needs change, or who have wants they will pursue.
With 30 year money at <3%, it is conducive to purchase for those who are capable.
Years of living in a sellers' market has provided us with long-term pent up demand among buyers.
"Who's buying the houses? Investors? Out of state transplants? First time home owners? Upgraders?"
IME, fewer investors, but there are some. Otherwise, the other three are in the market.
People are having that baby that means their current home is too small, or want to move for schools, or just want to get out of the apartment.
Can some agents here share insight on where buyers are coming from since market still seems so hot even during this pandemic with high unemployment and economic uncertainty. Who's buying the houses? Investors? Out of state transplants? First time home owners? Upgraders?
In my observation....it is largely people who really felt they needed more space after being in quarantine in their current digs for 3 months. The walls closed in on a lot of folks. Including a great deal of first time buyers who were previously in apartments; shared walls no more!
There's also a pretty strong correlation in people who had the option to work from home and employers/companies that could operate in that way without revenue drops and subsequent layoffs... said correlation also leads to a higher demand for "home offices" in a new home.
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