How will job and income loss affect the Real Estate Market
Job losses and loss of income in general are scary, but they’re real and they’re happening all across the board. In the meantime, there are companies which are hiring, rather than firing.
E-commerce, delivery, shipping and trucking, healthcare of course, grocery stores and those involved in producing and supplying essential goods and others.
When the dust settles, jobs are going to be coming back, surely shuffling around with many career restarts and change of positions. Most jobs will likely be absorbed by a resurgent economy.
The Residential Real Estate Market
In Real Estate this means that many who want or need to buy a home, will have to figure out how to fund a purchase without qualifying for a traditional mortgage for insufficient employment history.
Additionally, if they had reserves and burned through them to get by during these tough times, mortgages requiring a significant downpayment may be out of reach.
Even the modest downpayment requirements of 3.5% of an FHA loan may be tough to meet, especially when it’s on top of all the other criteria of eligibility.
Impact on HomeBuyer Activity
Will this impact the ability to sell? Will the pool of buyers who not only want to buy, but also are able to buy, dry up significantly?
It’s always a matter of price, if the price is appealing enough, then there will always be a buyer.
There may be many more cash investors who are already setting cash aside and quickly liquidating assets, including on the stock market, but soon also bonds, to take advantage of a difficult situation for sellers.
They buy at a discount and never at a premium, so sellers who need to sell may have to take a hit. Not ideal. It may work in extreme circumstances where the property is in physical distress and/or the seller is under intense pressure to dispose of the home and the selling price is not the main priority.
However, there are other options that sellers can entertain, including renting. It could mean income that could cover carrying costs until the market restores to better values, but they would have to be landlords. For good reason, many don’t want to be involved in rentals, nor do we.
Alternatively, they can sell in one of the many more ways that the law and the market allow.
That’s when we come into play, as investors on terms.
Investors on Terms
We use any method which federal, state and local laws and regulations allow to achieve the sellers’ goals by buying the property at full or close to market value.
At the same time we sell the same property primarily on a lease-option or owner financing deal. We therefore allow time for the buyer to get in position to obtain a traditional mortgage or any other way of financing the formal purchase; or we may finance them.
Opportunity for Sellers
Sellers relinquish all responsibilities and headaches from carrying the property to us, they don’t have to sell at a discount and get it done with professionals like us involved. They can move on without any burdensome debt which hits hard month after month. They will have no more worries or miss out on market opportunities.
If sellers want a head start in this fluid market they should get in touch and find out about the details.
Real Estate Agents & Brokers
Agents are also encouraged to reach out and get accustomed to our model; our options would allow agents a powerful marketing tool for all sellers. We have homeselling solutions where there isn’t an easy one, as in a home in preforeclosure.
Listings hard to Sell
We can buy many of the homes that are hard to move. Agents would earn a commission, get credit for a sale, and with little or no work as we can handle the whole transaction.
Guaranteed Brokering Fee
If there’s any doubt that sellers may have issues paying the facilitating agent, we GUARANTEE any shortcoming or the full payment at the closing table. We understand that agents should get paid fairly and timely so we can get generate business and establish a steady relationship.
Sellers, Listing Agents, Buyers’ Agents
So sellers and sellers’ agents, CONTACT US to find out if and what solution we may have for you and your client; buyers’ agents also, if you have a buyers with any lending challenges, especially if they already failed to qualify upon application, ask us how we can make them successful home buyers.
All Over the USA
We team up with other investors on terms like us or agents and brokers when making deals outside of New England. We are therefore not restricted geographically and buy and sell all over the US.
We look forward to getting the ball rolling with anyone who needs to get a deal done!