Understanding the Millennial Home Buyer

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Today’s home buyer is very different than even 15 or 20 years ago.  As a home seller or even a real estate agent understanding today’s home buyer is critical in helping to get your home sold.

We are going to talk about one segment of the home buying population, the Millennial home buyer  or generation Y.  The Millennial home buyer is shaping the real estate today and will for years to come.

So why are we talking about the Millennial home buyer?  Millennial home buyers make up the largest segment of the home buying population…. 34%.  They are the first time home buyers out there and potentially the older Millennials may be moving on to their second home purchase.

How the Millennials grew up and what they have gone thru shapes how they buy homes and what they expect in a home.  It is very different than future generations of the Gen Xer’s, the Boomers and The Silent Generation.

Realize Millennials have have bucked the trends and values of past generations.  They continue to stymie advertisers and how best to reach them.   Yet they control  a large percentage of consumer spending,  not only in home purchases but in all areas of consumer spending.

Let’s think a little like a Millennial home buyer to sell to a Millennial home buyer.  Most likely they will be a large population of who is viewing your home.  It makes sense to try and cater to them.

UNDERSTANDING TODAY’S HOME BUYERS AND WHAT THEY WANT AND WHY THEY WANT IT

While we are focused on the Millennial home buyer, don’t discount how some of these points have shaped how other generations buy homes as well.

My mother is a 76 year old from the silent generation.  She is quite the smart phone, texting, googling hipster!

Mom shops with the best of them online, can research everything in a heart beat and needs her smart phone to communicate.  She would rather text than pick up the phone.

Hmmmmm, not unlike a Millennial.

MILLENNIALS HAVE HAD FINANCIAL HURDLES TO JUMP

The Millennials have been sold a bill of goods.  Do anything to go to college, get the degree and you’ll get a great job.  No generation has racked up so much debt so fast.  Many Millennials left college with tens of thousands worth of debt, then they struggled to find a decent job if a job at all!  Many moved back home.

Because of this Millennials are getting married later and having kids later.  The push to own a home is not as great until the family starts to come.

Also gas prices are up, housing affordability is down, wages are down, commuting in urban areas adds hours to your day and commutes are longer to get to the jobs….  On the whole the Millennial generation is working harder for less.

They want turnkey house that are affordable easy and inexpensive to maintain.  They don’ want to spend money on renovations after they buy a house because they don’t have much left!

HOW TECHNOLOGY HAS SHAPED A HOME BUYER’S THINKING

The Millennials grew up with fast changing technology. In 1990 we had only about 15% of the households with a computer, compared to 79% in 2010 to about 83% today.

But don’t forget about the smart phone.  The smart home has put the internet in almost everyone’s hands with some not opting to have a home computer because they can get what they want with a smart phone. The Millennials are the first generation to grow up in the digital age.

Technological advances alone have shaped how all of today’s home buyers search for homes.

  • Millennials want information fast and they know how to get it.  They don’t want to wait and they will move on quickly if they can’t find the information they want.
  • Millenials want a ton of great online pictures of your home as well as including aerial real estate photos and other information.  They do not want to come out from behind the computer until something compels them to do so.  Look at the fall of brick and mortar stores and the rise of Amazon.  Fail to deliver the best you have online and you lost the buyer before they even show up.
  • Millennial home buyers want smart technology in their home.  Everything from lights to HVAC to security systems all controlled by their smart phone.  Heck, door locks now are being controlled by smart phones.
  • Millennials are quick decision makers.  Once they make up their mind they go for it.

THE REALITY TV GENERATION

For good or for bad, networks are all over home design, home buying, house flipping, home renovation with their how to reality TV shows.  But don’t underestimate how this has shaped how today’s home buyers think.

Im sorry, in all the years I have been selling real estate I have never seen an infinity pool with a waterfall, I have only seen one massive patio with living room seating for 12, a massive gas fire pit, 60″ TV and full built in outdoor kitchen with stone counter tops etc…

Many of these TV shows glamorize home ownership and finished renovations.

And I am going to step out further and mention sites like Pinterest and Houzz.  All those beautiful home decor and renovations ideas that many can only dream about.

The reality home shows and home decorating and renovations sites have shaped today’s home buyers with the idea of luxury and perfection.

Expectations have been set.

  • Millennials want updated baths and updated kitchens with all the latest fixture styles.
  • With all the home staging shows and home staging tips with the home flipping shows, home buyers expect a home to be fully prepared and staged…. yes staged, its expected.
  • Millennials want the appearance of luxury and they want it new.  Luxury doesn’t have to come at a steep price they just want the appearance of luxury with a few luxury items and they certainly want it new.

A HOUSE IS A PLACE TO LIVE AND NOT NECESSARILY A HOME

Millennials are less about owning and more about social experiences.  Statistics show that Millennial home ownership is down compared to future generations.

Millennials want to live full happy lives by experiencing life thru experiences rather than ownership.  They feel more connected to friends the community and the world by sharing those experiences. Many have also watched their parents and grandparents work hard and struggle to watch them lose it all in one of the worst recession our country has seen.

You can lose “things” you can’t lose a memory of an experience.

Look at social media.  It allows people to connect.  I myself have connected with people I haven’t seen in 35 years thru Facebook.  People connect on a much broader level and that connection can be worldwide.

Social media connects you with a whole new world of experiences.

  • Millennials want turnkey home that are low maintenance.  They want to spend more time and discretionary income on the experience than pride of ownership.
  • Houses don’t need to be large or be on huge lots, this means less money and time spent on maintenance.
  • Millennials on the whole want to be in urban or suburban areas where they can connect more with the world around them and plug into more activities.
  • This also gives a clue into what Millennials want in a home.  They want open multi purpose living spaces to entertain.  Formal dining rooms are out but large open kitchen/dinging/living are in.  And, don’t forget extending that space to the outdoors with decks and patios.
  • Millennial are far more transient than past generations as well as not being focused on “things”.  They are minimalists when it comes to furnishing and decorating.
  • The fixxer upper is lost on many Millennials as they don’t want to put the time into it. Again its just a place to live and they have other activities they would rather invest their time in. (nor do they have the money)

SUMMARY OF WHAT THE MILLENNIAL HOME BUYER WANTS

While the Millennial generation continues to confuse advertisers, we can at least get some insight into the Millennial home buyer.  Don’t underestimate the buying power of this generation and the fact that they want to buy houses.

First, you need to take the time to present your home in it’s best possible light starting with the decluttering of your home as well as the depersonalization of your home.

From there, you need to discuss with your REALTOR any minor and upgrades that should or could be done to make your home more compelling to the Millennial buyer.  Don’t overlooking staging your home as that is what is expected from the new generation of home buyers.

The closer you get to perfection the better.

The Millennial home shopper are expert online shoppers.  Your house must be in perfect order before even marketing your home.  Your homes online persona is critical in capturing a Millennials attention.

But, whatever drives the Millennials today can change as they age and their priorities may change.  Remember the oldest Millennial was born in 1980.

Get your home millennial ready now!

 

House Price versus Interest Rate

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Want to know how important your interest rate is on your purchasing power?? Well check this out! Don’t worry about the purchase price. Stay on top of your interest rate. .5% will make a huge difference on your monthly payment and what you end up paying over your loan period.

How Much Do You Lose in Sales Price With Each .50% Interest Rate Hike?

Let’s now compare that home at $240,000 if rates went up 1/2 point and you wanted to keep your payment the same. The amortization of most mortgages is for 30 years.

  • $240,000 x 80% at 4.5% interest equals a payment of $972.84
  • $226,260 X 80% at 5.0% interest equals a payment of $971.65
  • $214,062 X 80% at 5.5% interest equals a payment of $972.34
  • $202,500 X 80% at 6.0% interest equals a payment of $971.27
  • $192,188 X 80% at 6.5% interest equals a payment of $971.80

You can see that a 2% increase in an interest rate would lose you about $50,000 of purchasing power in this price range. If you doubled the sales price, you would lose about 100,000 of purchasing power for a 2% spread in interest.

This is why interest rates play a huge factor for many first-time home buyers. If you are stretched too close to the top end of your price point and rates go up, you might not be able to buy that dream home you want because you will no longer qualify for that sales price. And, just so you know, making a lowball offer is not always the answer.

Call me today so I can give you a private tour and show you the inside of all the homes for sale that meet your criteria in Washington County in less than two hours! I can show you any home for sale in the St George area listed by any company anywhere in the city. Then you don’t have to keep searching for open houses on the weekend. We can go anytime you want. Let’s get you out there.

Contact me and I can help get you fully qualified because when you find that perfect home in southern Utah you will want to be ready to write the offer on your new home. You do not want to lose your dream home because someone had a strong qualification letter from their lender showing that they are capable of purchasing the home. Contact me and I can help direct you to the lender that will do the best job for your particular situation.

Zillow or Realtor’s website?

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Hey folks…welcome back! I keep getting asked why so many St George Utah and surrounding Washington County real estate is sold but still showing up as available on sites like Zillow and the plethora of like sites. Well sites like Zillow and Trulia are packed with tons of information but lacking in basic knowledge. Great for fun but not so great for actually trying to purchase a home, At least in our current real estate market. Realtors, like myself, provide what’s known as a IDX link for FREE, Twenty Four hours a day seven days a week! My FREE to you IDX feed is from the same company that we use as agents in Washington county so you get information as quickly as I do. Every internet site gets its information from the same company you and I do. that is my commitment to you. Get you as accurate and reliable information as quickly as possible. No middle person, delays or overlays. Just reliable accurate St George real estate information from your mobile devices and desktops. Call me today so I can give you a private tour and show you the inside of all the homes for sale that meet your criteria in Washington County in less than two hours! I can show you any home for sale in the St George area listed by any company anywhere in the city. Then you don’t have to keep searching for open houses on the weekend. We can go anytime you want. Let’s get you out there.
Contact me and I can help get you fully qualified because when you find that perfect home in southern Utah you will want to be ready to write the offer on your new home. You do not want to lose your dream home because someone had a strong qualification letter from their lender showing that they are capable of purchasing the home. Contact me and I can help direct you to the lender that will do the best job for your particular situation.

 

What to expect from a powerful St George Buyers agent

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Okay so you are ready to buy or are you just starting the process of purchasing St George real estate? Is your time valuable? Have you been qualified by a professional and competent mortgage lender? Preferably a local lender, and i can help you with that. They know our market and are aware of all the money and assistance that local government is offering. Check this link for more information! St. George Utah Mortgage Lenders

I need information to make the best use of your time and money. Locating and purchasing a home is a big deal and for me to deliver the highest level of service I will need to know and verify certain information. If this is a long term project I am here to help too. The listings I provide on my website are from ALL the Realtors on our Washington County Board of Realtors.

Every single one of my clients works off different timelines and budgets. That’s why there is no one single strategy that fits all the wants and needs of every client. With all the information I can initiate a proven strategy to meet your goals. And have some fun in the process!

Let me take a minute and share with you how i do business. I always arrange a meet and greet at my office in St George and go over your wants and needs. i also want make sure that your lender has made sure you won’t be disappointed! Many of my clients are out of the area so in lieu of an office visit I will be happy to arrange a phone consultation.

FAQ about our buyer/broker agreement…..

‘I know you want to show me homes, but why do I need to sign a broker’s agreement?’

“We’d never ask you to sign anything that had no benefit to you,”

“But it sounds like you might have a concern.”

“If there was a benefit to signing it and working with an agent, would you do it?”

“Do you only want to look at places that are active on the market, or do you want to see all of them? Including ones that tried to sell or didn’t, or maybe the for sale by owner [FSBO], or pocket listings.

“We don’t want to lock you into anything; we can cancel it if we’re not getting along or something doesn’t work out, but I want to open up all the homes possible to you. The agreement means that I understand that you commit to working with me to find you a home, and I’m going to owe you work and respect.”

Why Sign a Buyer’s Agency Agreement ASAP?

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When I am asked ‘I know you want to show me homes, but why do I need to sign a buyer/broker’s agreement?’

My answer is always the same. “I would never ask you to sign anything that had no benefit to you,”  “But it sounds like you might have a concern.

“If there was a benefit to signing it and working with an agent, would you do it?” I added. “Do you only want to look at places that are active on the market, or do you want to see all of them? Including ones that tried to sell or didn’t, or maybe the for sale by owner [FSBO], or pocket listings.

“We don’t want to lock you into anything; we can cancel it if we’re not getting along or something doesn’t work out, but I want to open up all the homes possible to you. The agreement means that I understand that you commit to working with me to find you a home, and I’m going to owe you work and respect.”

And there is lots to show that is not just “on the MLS”. So let’s make the best use of your time and my knowledge!

Call me today so I can give you a private tour and show you the inside of all the homes for sale that meet your criteria in Washington County in less than two hours! I can show you any home for sale in the St George area listed by any company anywhere in the city. Then you don’t have to keep searching for open houses on the weekend. We can go anytime you want. Let’s get you out there.

Contact me and I can help get you fully qualified because when you find that perfect home in southern Utah you will want to be ready to write the offer on your new home. You do not want to lose your dream home because someone had a strong qualification letter from their lender showing that they are capable of purchasing the home. Contact me and I can help direct you to the lender that will do the best job for your particular situation.

St George real estate Seller’s Market?

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I hope to shout we are! The only thing keeping us from exploding are the lessons learned from the last St George Utah real estate boom.  I have to share an interesting email from a potential real estate investor. He wanted to look at only foreclosure fixer upper St George real estate.  I said a unicorn would be easier to find…we had three foreclosures on our MLS two days ago! The good news you won’t have to pay more than appraised value and the positive appreciation means you start building equity immediately. On some some 4 to 6 month out new construction build jobs in St George your home really gains value in the short time it takes to complete the build and you move in. You paid  six months earlier values!! A good Realtor will help you maximize your buying power even in a sellers market. A buyer will be up against multiple offer and final and best scenarios. You can keep that to a minimum with a great Realtor in your corner.

With all that being said I have managed to get some clients into homes with closing costs paid including getting their earnest money back! If you are patient there are possibilities.

Call me today so I can give you a private tour and show you the inside of all the homes for sale that meet your criteria in Washington County in less than two hours! I can show you any home for sale in the St George area listed by any company anywhere in the city. Then you don’t have to keep searching for open houses on the weekend. We can go anytime you want. Let’s get you out there.

Contact me and I can help get you fully qualified because when you find that perfect home in southern Utah you will want to be ready to write the offer on your new home. You do not want to lose your dream home because someone had a strong qualification letter from their lender showing that they are capable of purchasing the home. Contact me and I can help direct you to the lender that will do the best job for your particular situation.

Difference in Mortgage Lenders

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If you think all St George mortgage lenders are close to the same take a minute and read my post and you may be surprised. It has literally taken my years to find a lender or a small handful of lenders here in Southern Utah that are truly capable of getting the job done. On top of the basic ability and skill sets to get the job done there is this little known factor of overlays. Yes overlays. An overlay can and quite frequently keeps St George home buyers from buying a home or makers in difficult to impossible to obtain the loan. This leads to a major disappointment for all parties.
A great Realtor can and will make sure you are aided by competent St George mortgage lender with a proven track record of accomplishing the task.

So what is an overlay you ask? Well here is a simple definition…One important concept you should familiarize yourself with is the “lender overlay,” which is essentially an expanded guideline (or set of guidelines) on top of what Fannie Mae, Freddie Mac, or the FHA/VA will allow.” There are literally hundreds of overlays required by individual banks and lenders throughout the country. I have listed a ew examples right here.

They range from credit score (most common), to max loan-to-value, to max debt-to-income ratio, and much more. For instance, a streamline refinance may have no appraisal or credit score requirement, but a specific lender may want a certain minimum score and an appraisal. Additionally, the guidelines may indicate that you can get a new mortgage just days after a short sale if you remained current on payments, but most lenders will impose overlays to deny you.Lenders may also restrict the type of loan you can select, such as an adjustable-rate mortgage in certain situations.And even those nifty solar panels on the roof could present a problem if the lender doesn’t want to deal with the associated solar panel lease.In every situation, the lender is looking to mitigate risk to ensure loan quality is upheld and maintained.

So why would you want to go through a southern Utah mortgage lender that wants to burden you with unnecessary add ons? You don’t want that…do you? the great news is I can be your advocate and help eliminate most of the risks.

Call me today so I can give you a private tour and show you the inside of all the homes for sale that meet your criteria in Washington County in less than two hours! I can show you any home for sale in the St George area listed by any company anywhere in the city. Then you don’t have to keep searching for open houses on the weekend. We can go anytime you want. Let’s get you out there.

Contact me and I can help get you fully qualified because when you find that perfect home in southern Utah you will want to be ready to write the offer on your new home. You do not want to lose your dream home because someone had a strong qualification letter from their lender showing that they are capable of purchasing the home. Contact me and I can help direct you to the lender that will do the best job for your particular situation.

Showing Homes in St George Utah-What really happens

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Have you ever wondered what goes on when you contact a St George Realtor and want to look at homes. Well I have some answers and you may be surprised. First off your Realtor will ask you questions about your wants and needs and then a great Realtor will make sure you can actually pull the trigger once a home is identified. As your Realtor I go right to work to make sure the best use of your time and my time is maximized. I start by narrowing the search! Then I may even do a drive by or preview the homes before I waste any of your time. I want to make sure we hit the nail on the head. I may take hours calling agents and homeowners to set, coordinate, and schedule appointments. In almost all cases homeowners will need to make sure their home is presentable and in great showing condition. Then they must vacate the home to allow the potential buyer the freedom to examine the home with no pressure. In some instances when a seller has a family they will need to pack the kids and leave for an hour or so. I am sure you can appreciate the energy and time spent by all up to this point. I may ask you questions about each home to prepare to give feedback to the homeowners or sellers agent. Depending on my buyers requirements it may take hours of searching and many miles of driving to make sure a outstanding job is done. As a Realtor I need to make sure for everyones benefit that my clients/buyers are fully qualified and ready to make the move! As a realtor I can safely say we spend hours behind the scenes before offers are written, prices are negotiated and you take ownership of your new home.  Another important step is getting the agency agreement signed allowing your Realtor to represent and act as your advocate. As your St George Realtor I need to know before I  share my years of experience, skills and spend hours setting appointments, driving around and screening homes that my time is also spent wisely. It’s not uncommon for your Realtor to spend hundreds of dollars in fuel and vehicle maintenance with one client. So please understand it is important for us to work as team to make sure that this is all possible. I promise you will be glad I do ask questions yourself.  ask the questions when I ask them. And please never hesitate to. Keeps disappointment to a minimum. I have great lenders that can help you and I hit the bulls eye! So to access my years of experience, skill sets and training I will ask you to sign a buyers agency agreement before we look at any homes for sale in St George Utah. So take advantage of my experience and let’s get signed up and start looking! You will be glad you did!!! Allow me to earn your business.

Thank you so much and have a great day!

Walter

Things to do in Southern Utah

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Where do you or I start. We have so much to be thankful for. Living in Southern Utah is just plain awesome. We are so close to several National Parks. Enough to keep a person busy for years! Golfing year around. River running, both some of the worlds finest river running. From flat water to white water this part of the world has it all. It isn’t all in our county or even the state of Utah…but it is all very very close. We have world class hiking and biking in our backyard. If you ride a motorcycle on the backroads or dirt roads you won’t find better riding than our corner of the world. When you come visit Even if you are looking to buy or sell St George Utah real estate take the time to smell the roses. We have something here for everyone at every age. Best part we are a year around outdoor lifestyle corner of the world. You will find lots of sunshine and clear blue skies almost every single day of the year. We are close enough to Las Vegas to head down for a quick visit round trip in one day or spend the night and enjoy one of the spectacular shows only found in Las Vegas! Or go the other direction to Escalante and points north. There is no wrong way to trip around this corner of the world. If you haven’t visited us in a bit you will be pleasantly surprised. The university is growing and so is the rest of the county. All in a very positive and exciting way.  Sign up for my monthly email letter and I promise to keep you up to speed on cool stuff down here. Or visit my St George Events page for a list of fun things to do. Have a great 2017…hope to see you all this year!

Craftsman Style Homes for Sale

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Craftsman style homes for sale in St George Utah can be hard to find under normal search parameters. That’s where I come in to the rescue. I have access to that information and where to find them. They are available, just need to dig them out. Craftsman style homes have not been in high demand here in the St George area. However it seems they are gaining popularity and builders have elevations that cover the craftsman style home.

There are some fantastic floor plans and elevations as well as locations to build your St George craftsman style home. I look forward to helping you make the best the use of your time and money! Well to southern Utah…come and take a look at what we have to offer. You will not be disappointed in our awesome southern Utah lifestyle!

Call me today so I can give you a private tour and show you the inside of all the homes for sale that meet your criteria in Washington County in less than two hours! I can show you any home for sale in the St George area listed by any company anywhere in the city. Then you don’t have to keep searching for open houses on the weekend. We can go anytime you want. Let’s get you out there.

Contact me and I can help get you fully qualified because when you find that perfect home in southern Utah you will want to be ready to write the offer on your new home. You do not want to lose your dream home because someone had a strong qualification letter from their lender showing that they are capable of purchasing the home. Contact me and I can help direct you to the lender that will do the best job for your particular situation.