Today’s Buyer Vs. The Buyer Of The Early 2000’s
We are beginning to hear the glimmer’s of hope of a booming real estate market. While we all desire a vibrant economy, many of us fear the pains of the last 5 years. For those who were around to experience and participate in the foolishness of the home buying boom in the early 2000’s, the current excitement in no way feels comparable. So what has changed in the buyer of then and now? Here are a few of my thoughts…
The Buyer Of The Early 2000’s…
- Didn’t care about the condition of the home (PROOF– most were willing to waive the home inspection).
- Didn’t care about the appraised value (PROOF- most were willing to pay way above asking price believing it would be worth more in a short amount of time).
- Was not concerned with financing (PROOF- do you really need any? Stated Income & No Doc Loans were the order of the day)
- Purchased for the short term. Many buyers in the early 2000’s were only considering purchasing homes and holding them for a short time like an investor.
- Today’s buyer is concerned with the home’s condition. (Proof- buyers today RARELY EVER waive the home inspection contingency- even when the home is sold as-is).
- Today’s buyer is concerned with the appraisal. (Even cash buyers use appraisal contingencies on properties ensuring they are not over paying for a home).
- Today’s buyer is concerned about financing. (While myth’s run rampant regarding financing… Lending restrictions are very tight to ensure that buyers are well qualified to purchase a home in today’s market).
- Today’s buyer purchases for longer periods of time in mind. (Buyers today are not buying and planning on flipping the home for a profit in the short term. While they may not plan to stay for an extended amount of time, they have no inflated ideas about where the market will be in 2-3 years).