Okay guys, you've heard me talk about forbearance. I'm going to give you another opportunity within this market that you're all going to want to take advantage of right now.
So we know right now there's 1.86 million homes that are in forbearance. It's about 3.5% of all the mortgages in America.
So when you look at that number, it sounds like a scary number. But 87% of those folks have 10% or more equity.
Now, here is the kicker behind that:
The 12-month period of time that the CARES Act provided is coming to an end for a lot of people. Hundreds of thousands of these properties are now having their forbearance ending.
And this is starting really at scale in September when 450,000 of these homeowners are now going to be at the end of their forbearance period.
Now here's the good news:
87% of those folks have 10% or more equity because we've had such a massive equity buildup over the past 12 months. So they can actually sell....
What percentage of Americans would you guess paid off their home?
Think about that for a second: Completely own their home, free and clear.
In other words, when you're driving down the street in your neighborhood, out of 10 homes, how many people have paid their home off and outright own it?
Would it be 2 homes, 3 homes, 4 homes?
The answer is 38% of Americans have paid off their home in full, which is absolutely amazing.
The equity for homes in America is off the charts. It's incredible. So that's good.
Now, why do I bring this up?
The reason I bring it up is because people that have equity in their home actually have a huge, powerful advantage when it comes to moving up to their dream home.
And here's why:
They can actually do something that a lot of sellers can't. They could go buy a home and finance their second home (what they're going to buy next). And they won't have two mortgages.
So they have no pressure on themselves when it...
Sometimes a seller will say to you, "Well, just sell it to a cash buyer. I don't want to deal with financing."
Have you heard that? We all have from time to time. When you have a seller say that to you, you need to arm yourself with good information so you counter that. And help them understand that the market isn't comprised of a ton of cash buyers.
The good news is that there are more cash buyers that there has been. We've seen a huge uptake in cash buyers. But the current number as of today, in all across the country, is that 25% of the sales done in the country are now cash buyers.
But what's the reverse of that number? The reverse of that number is 75% of the sales are not cash sales. So they're involving some level of financing. Which means that when we list a property, we have to sell it four times in order to create a sale.
We have to sell it to the market, to get them excited about that listing. That's creating that...
Jim would like to talk to you about your real estate business with a complimentary 30 minute coaching session.
During the call be prepared to discuss - Your goals for the next twelve months. Your time management and priority management strategies. Your willingness to change and adapt to a changing market landscape, and your biggest choke points - what's really holding you back
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