Why Buyers are Highly Motivated to take Advantage of these Opportunities
I have been sitting face to face with home buyers for many years. I can tell you what their concerns are and how the HERE opportunity is something that will be of tremendous interest to them.
Payment:
They are very concerned about the affordability of a home. The payments can be very intimidating. An option that can lower their utility costs more than it increases their house payment is something that is very appealing to them since it helps alleviate part of this cash flow concern.
Cash Investment:
Not only do they have to come up with the money for the Down Payment and Closing Costs, but they have to do this at a time when they are making this major commitment and already feeling very anxious about it. If anything, they would really like to have more cash on hand not less at this time. A program that results in them being able to replenish all, or part,of their cash investment is extremely appealing.
Major Expenses related to owning a home:
One of the most appealing aspects of the Energy Efficient Mortgage for my clients has clearly been the ability to avoid a potentially financially devastating event. One of the biggest fears for home buyers is a major repair coming up that they were not prepared to address. Of these, the single biggest item that they worry about is the HVAC system. When they are buying a 25 year old house with the original unit they are very concerned about what they are going to do when it fails. The opportunity to include the full cost of having a brand new system with a warranty on it is very reassuring.
Pride of Ownership:
You cannot understate the value to a homebuyer of making a major and tangible improvement on the house they are buying from an emotional investment standpoint. I am not a psychologist, but I can tell you from personal observation that people have a very different feeling about the house they bought when it has the windows they upgraded or the HVAC unit they had installed. In a strange way it really seems to make them feel connected to the house. I would love to see a study of the impact this has on defaults. I am pretty sure that people would be very shocked to discover how much more reluctant owners are to walk away from a house they have initiated improvements and alterations on.
Sacramento 1st DBA Comstock Mortgage – Lic : 01390474
Kevin Nunn – NMLS 305826 / DRE 01158674
