This WSJ article outlines how hard it is becoming to get a mortgage.
“The down payments demanded by banks to buy homes have ballooned since the housing bust, forcing many people to rethink what they can afford and potentially shrinking the pool of eligible buyers.”
It may have an effect on the inspection business to a small degree, but it will be much better for the future economy.
It will also create a glut of saleable homes and remain a buyer’s market for some time. With more sophistcated buyer’s, as a rule.
Equalizing the market–home prices had skyrocketed to an unbelievable level.
Jae I think you are correct on all points…
Used house salesmen of the preceding decade were spoiled by commissions of tens of thousands of dollars that were paid to them for doing nothing more than planting a sign with their name on it in the front yard.
Now, they have to sell houses. Most are finding other work. Those who are replacing them will be better for the skills they will develop in a tougher market. Homes will still sell…and people will still buy them…but there will be less room for arrogance and a stronger need for effort.
Tougher mortgages will increase the caliber of the buyer who will be looking harder at his investment…which is where we come in.
I’m looking forward to it.
Ditto. Remember, it is the agent that controls the sale process, and should promote the best to their client, including hiring the best inspector, lender, appraiser, repair person, etc.
But are they? I hope buyers will become smarter, and sound out an agent who is not doing them right.
Most of the buyers I have dealt with use the internet to find their hirelings.
In the past many buyers called me because I wasn’t on the Realtors list of “preferred inspectors”.
Then the buyer referred me…