New Home Buyers are Strapped for Cash

New Home Buyers are Strapped for Cash

Devin JamesPro Member
Developer · Orlando, FL · Member since 2018 · 502 posts · 306 votes

We've sold 65+ homes and the biggest request we get from our Buyers is help with closing costs.

Most of our deals we're providing anywhere between $5K-$10K to help Buyers offset the cash requirement to purchase a home.

Even in today’s "high" interest rate environment, many Buyers prioritize closing cost assistance over an interest rate buydown.

This speaks volumes about the challenges Buyers are facing when it comes to saving enough cash to purchase a home.

It’s a reminder that understanding what Buyers need most is key to creating deals that work for everyone.

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  • Investor · Hendersonville, NC · Member since 2016 · 498 posts · 285 votes
    1y

    @Devin James I definitely agree with your main point. And it's very pertinent to today's environment because it doesn't look like interest rates will be coming down much, if at all this year.

  • Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    1y

    There are several lenders who offer low/no closing cost options for first time homebuyers. Some costs are eliminated (such as 'soft charges') while others are accounted for in the interest rate.  And, it's amazing how many closing costs are junk fees that we as investors need to pushback on paying for ourselves and our clients. There simply are too many people attempted to get their hands in our pockets.  The industry is long overdue for an overhaul.  

  • Devin JamesPro Member
    OP
    Developer · Orlando, FL · Member since 2018 · 502 posts · 306 votes
    1y
    Quote from @Patricia Steiner:

    There are several lenders who offer low/no closing cost options for first time homebuyers. Some costs are eliminated (such as 'soft charges') while others are accounted for in the interest rate.  And, it's amazing how many closing costs are junk fees that we as investors need to pushback on paying for ourselves and our clients. There simply are too many people attempted to get their hands in our pockets.  The industry is long overdue for an overhaul.  


     Interesting perspective

    Any examples of the junk fees you see? We may need to switch lenders.

    Definitely too many hands in our pockets...

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