Many people in the United States rent their homes. They may want to buy, but there are challenges. Mostly financial, they have fears. If you are a real estate professional trying to figure out how to turn renters into buyers, you must ease their fears. The Harris Poll recently polled for more information regarding renters. It found that it took an average of 3 years to save for a downpayment to buy a home. However, it also found these fears: the poll found 71 percent of renters have fears about buying. These are the specific fears they found, as written by Florida Realtors:
- The need for a long-term commitment to their partner: 9 percent (20 percent for millennials; 4 percent for adults older than 35)
- Finding out that the home needs repairs: 36 percent
- Paying for the house only to find there’s not enough money left over for other expenses: 35 percent
- The overall financial commitment of homeownership: 35 percent
A tip on how to turn renters into buyers: advise them to save on a monthly basis. On average, the poll found that one quarter of homeowners saved for their downpayment by doing this.
“Homebuyers should work closely with their real estate agent to find properties that aren’t at the top of their budget to keep affordability in check,” says Chris Ling, head of homebuying and mortgages for NerdWallet. “Also, working on a consistent savings plan for a downpayment and closing costs, as well as addressing any outstanding credit issues, will increase homebuyers’ chances of qualifying for better mortgage rates.”
If you are a real estate professional, understanding the fears of renters but also knowing solutions will create more buyers. If you are a renter, expert agents like ours at RE/MAX Paradise can help you make the leap from renting to buying your dream home in Miami. Contact us today!