The profile of today’s renter is changing. With all of the drama in the financial and real estate market over the past few years – upside down homeowners needing to sell, foreclosures at astounding rates, bankruptcy filings increasing, and strategic defaults – the premise that everyone wants to own a home is no longer valid. Homeownership is down to a 10 year low of 62% per a Gallop Poll in April 2012. This leads to the realization that 38% of people need rental units.
So who is today’s renter? Look at your neighbors. That is right. We are seeing the people who traditionally have owned, now opting to rent. In the past 2 years, the renter demographic has significantly changed. Professionals who have good jobs, but either due to, the choice they made to release a home back to a bank, being in over their heads with debt, a forced relocation that caused a hardship, or in some cases – just don’t like being a homeowner. These professional still want the same type of home that they were living in before. They want the same amenities and conveniences; they just want someone else to pay the mortgage.
So what does that mean for investors? If you are looking to purchase real estate for long term holds, we recommend that you purchase newer homes in the best school district you can afford. The newer homes appeal to today’s renter versus the older homes that used to be an investor’s bread and butter inventory. Four or more bedrooms is also a plus as families are getting larger and home office space allows for more flexibility.
Banks are getting smarter about getting the best possible price for their inventory. We are seeing banks offer homes with very low list prices in an effort to bid up the prices with multiple offers. This creates an auction style approach to real estate and should be approached with care. As real estate investors, we make our money on the purchase of the home – so if we over pay for the property, we will feel the effect of that for many years to come. However, in some investors quest to “get a deal”, they will get caught up in the frenzy and not take into account the total cost of ownership for the property.
Interested in finding out how you can make money in real estate investing? Contact Mark Lackey at 404-886-8789 for a free 30 minute phone consultation.
As your Buyer Representative we will:
- We will represent your best interests.
- We will meet with you to review all your needs and provide you with relevant information to help you determine what houses best suits your needs.
- We will use the information that we discussed to narrow down all the possibilities to those that meet your specifications.
- We will provide you with reputable lenders with competitive rates who will work with you to establish your credit and financial criteria to insure that you can afford and purchase your dream home once we find it.
- We establish a timeframe for purchase to make sure that you housing requirements are met.
- We will keep all personal information confidential.
- We will establish our commitment to you in writing through a Buyers Brokerage Agreement that will allow us to represent your interests.
- We will find all available homes that meet your criteria including those that are outside of the Multiple Listing Services (MLS).
- We will help you evaluate the properties to help you make your decision on which one to write an offer.
- We will prepare a competitive market analysis of your selected properties to assist you in making the most favorable offer.
- We will thoroughly explain the Purchase and Sale Agreement so that you have a clear understanding of your obligations and the sellers obligations, review the timing & requirements of the due diligence period, and assist with any special stipulations that will most benefit you.
- We will recommend that you hire a competent home inspector to evaluate the physical structure of the home.
- We will provide you with a list of recommended vendors to assist you with each step of the process including – attorneys, home inspectors, home warranty providers, title companies, repair services, moving services, etc.
- We will help you by reminding you of the critical dates of action items to make sure that the contract is moving forward.
- We will follow up with your lender to make sure that everything is proceeding as planned and confirm with you the funds required for your home purchase.
- We will set up a final walk through of the property right before closing to make sure that the home is in the correct condition before closing.
- We will attend the closing with you to make sure that you are represented in case there is an issue at the closing table.
Want more information about how we can work for you? – Call us today at 404.886.8789 and speak with Mark Lackey about how we can help you achieve your dreams of Home Ownership!