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How To Convince The Most Skeptical Person To Buy Their First House

        

If you want a great marketing message that you can put out to your audiences today. I'm going to give you one right now.

And it's not from me. It actually comes from the NAR Economist Blog. If you haven't checked that out, check it out. I pull a lot of data out of there all the time.

But they had this great example of how much equity someone would have built up over a 30 year period.

And so they took an average home price and they went back 30 years ago and said, what was the average home price? What would be your guess?

The average home price 30 years ago was $103,333 — an odd number, but that's what it was.

Then they took somebody that put 10% down back then, had an average payment based on the interest rates at the time, and figured out how much equity they would have built up through equity appreciation and paying off their mortgage.

So what would they end up with net worth today just from their house?

The answer is $349,000.

But not all areas are created equal, right? So that's for the entire country. Some areas of the country had far greater numbers. Where I just taught in Anaheim, California, their number was over a million dollars!

If you look at San Jose, California, it's $1.6 million. In San Francisco, it's $1.3 million.

So if somebody bought a home 30 years ago, that's how much they would have accumulated in wealth.

It's a great lesson for people that are on the fence about buying.

We're seeing less first time home buyers coming to market now, and we need to encourage them it's still a great time to buy.

By the way, the interest rates 30 years ago in 1991 was 10.375%. And I was actually one of those people. I bought my first home in the early 90s and I paid 10.5% interest and I was happy to get it because it had been 11% the month before.

So for me, I was super excited about 10.5%. Can you imagine?

But giving people lessons about what they can do and how they can build that equity is so important.

I hope that helps you today. Have a good day. Good selling.

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