Understanding the Other Side
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With the Memorial Day Weekend in our rear-view mirror, people are thinking “summer.” Through the mainstream press we hear about first time home buyers, buyers of 2^nd homes, older people obtaining reverse mortgages… but what about “first time sellers”? Orion’s brokers are seeing the housing market heating up in many areas, especially as the weather improves, and buyers complain that there are too few properties to purchase, prices are high, rates are low and demand is rabid. So, what is stopping an owner from selling their house today and moving on to the next one?
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Experienced brokers know that a high-cost transaction can be very intimidating for a first timer, especially in a market such as this one. Borrowers in the future are educating themselves about the process so that they can approach selling their house with confidence. Sellers should investigate what they can afford once they sell their current home, or if it is possible for them to purchase without having first sold: buying power. A good broker will walk them through the steps and options. Many people discover that they can qualify to make a step up in housing without having their current home sold, which gives them a lot more flexibility because they can buy before they sell.
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From Selling Strategy to Buying Power: How Brokers Help First-Time Sellers Succeed

Brokers can also inform the seller of the costs of obtaining a new home loan, what programs are available, a general timeline, what is required for underwriting, and common mistakes that are made. These include unrealistic expectations, trying to obtain new credit cards or debt prior to buying another home, and so on.
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Once a potential seller understands their buying power and the process, they should meet with a real estate agent for the selling side and the buying side to determine a pricing strategy for selling and a timing strategy for buying. They should know what their buying power will obtain, and study communities where they are likely to purchase. The listing agent for a house will tell the owners to clean up, spruce up, and stage the house for sale, give the first-time seller a timeline, and discuss the possibility of renting after a house is sold. Inventory is tight in many areas, so if a buyer falls in love with a house they will work with the seller’s timeframe.

Although Orion’s brokers work primarily with clients seeking to finance a home’s purchase, or refinance their existing debt, Orion and our brokers understand the psychology of sellers. There are many components of the process for both buyers and sellers that can be “win win” and in no way adversarial. It is worth having a discussion!

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