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Hammer, Nails, First Time Home Buyers!
The National Association of Realtors published a very interesting article earlier this month entitled "First-Time Buyers Aren't Afraid of Renovation." With a title like that I had to explore further because everything I've read up until this moment appears to contradict that statement.
According to the principal economist at Houzz & Home, "younger and cash-constrained first-time buyers are responding to the low inventory of affordable homes by purchasing properties that require more than just cosmetic upgrades." She went on to say, "not surprisingly, we are seeing their spending on home renovations increasing significantly in 2016 and expect this trend to continue through 2017."
They actually provided us a few additional pieces of data to keep in mind, as in what the average remodeler spent in renovating their homes by room:
- Kitchens: $19,100
- Master bathrooms: $11,700
- Living/Family rooms: $5,400
- Master bedroom: $3,400
- Laundry room: $2,800
- Dining room: $2,600
- Guest bedrooms: $1,900
Now THIS IS SOME VALUABLE INFORMATION LADIES AND GENTELMAN. How many times have we come to hear that FTHBs only have enough for the down payment? How often have we heard about the low inventory levels restricting what's available to those same buyers? Well helping these clients find a turnkey property to suit their financial needs can be extremely difficult when you're under the impression that it's the only option available!
But here we are, and statistics are now showing that these FTHB are more comfortable with the idea of spending a sizeable sum of extra money to make their new house a home. Well you know what's great about this newfound discovery? There's a loan product most of your local banks should offer called the 203(k) loan to satisfy this demand exactly! They're not incredibly complex products, but make sure the lender you're working with has thorough understanding for all the nuances associated before referring your FTHB clients.
Renovation loans are fantastic for helping open new doors to homebuyers that wouldn't otherwise be available for them. With this trend expected to continue, the more educated you can get on how they work, the more doors you can open for others that were told they were closed.
The views of this blog, podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.
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By Matt Weaver, Zack LewisThe National Association of Realtors published a very interesting article earlier this month entitled "First-Time Buyers Aren't Afraid of Renovation." With a title like that I had to explore further because everything I've read up until this moment appears to contradict that statement.
According to the principal economist at Houzz & Home, "younger and cash-constrained first-time buyers are responding to the low inventory of affordable homes by purchasing properties that require more than just cosmetic upgrades." She went on to say, "not surprisingly, we are seeing their spending on home renovations increasing significantly in 2016 and expect this trend to continue through 2017."
They actually provided us a few additional pieces of data to keep in mind, as in what the average remodeler spent in renovating their homes by room:
- Kitchens: $19,100
- Master bathrooms: $11,700
- Living/Family rooms: $5,400
- Master bedroom: $3,400
- Laundry room: $2,800
- Dining room: $2,600
- Guest bedrooms: $1,900
Now THIS IS SOME VALUABLE INFORMATION LADIES AND GENTELMAN. How many times have we come to hear that FTHBs only have enough for the down payment? How often have we heard about the low inventory levels restricting what's available to those same buyers? Well helping these clients find a turnkey property to suit their financial needs can be extremely difficult when you're under the impression that it's the only option available!
But here we are, and statistics are now showing that these FTHB are more comfortable with the idea of spending a sizeable sum of extra money to make their new house a home. Well you know what's great about this newfound discovery? There's a loan product most of your local banks should offer called the 203(k) loan to satisfy this demand exactly! They're not incredibly complex products, but make sure the lender you're working with has thorough understanding for all the nuances associated before referring your FTHB clients.
Renovation loans are fantastic for helping open new doors to homebuyers that wouldn't otherwise be available for them. With this trend expected to continue, the more educated you can get on how they work, the more doors you can open for others that were told they were closed.
The views of this blog, podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.