Prepping your Pipeline of Spring Buyers for Homeownership

Prepping your Pipeline of Spring Buyers for Homeownership

The homebuying market calmed down in the last year, but it still poses plenty of challenges for buyers.

For example, while prices stabilize, interest rates and inflation continue to climb. And though the competition for available homes subsided some, U.S. housing inventory dropped to an all-time low just a year ago.

Plus, we’re still emerging from a novel pandemic, which caused instability and uncertainty for just about everyone. 

The takeaway? This spring, encouraging your prospective homebuyer customers to educate themselves before starting the process is as important as ever. That education will provide the tools and know-how to get off on the right foot, giving buyers confidence and setting them up for long-term success

The 2023 homebuyer profile

To better understand the educational needs of homebuyers this year, let’s examine their current profile.

For starters, the challenges in the market impacted the share of first-time homebuyers. Just 26% of buyers were first-time homebuyers in 2022, a record low and down from 34% the year before, according to the National Association of Realtors.  

Buyers are also taking the homebuying plunge later than ever. The typical first-time homebuyer is 36 years old while the average repeat buyer is 59 years old — both record highs.

And while the share of white (88%) and Hispanic (8%) homebuyers rose, the percentage of Black (3%) and other racial and ethnic groups declined — indicating that some demographics are disproportionately served in their homebuying journey.

Homebuying still too expensive for many 

Despite the stabilization of sales prices, homebuyers still face a difficult financial climate.

The median U.S. home sale price was $388,472 as of December, up 1.3% from the year before. While that isn’t a drastic year-over-year hike, it doesn’t mean buying a home is suddenly affordable for everyone.

For starters, the median U.S. monthly rent ($1,978) is 43.8% of the estimated median U.S. income ($54,132). Factor in an inflation rate of 6.5%, and a median student debt of $28,000 for nearly half of younger millennials, and it’s no surprise that saving for a down payment is the most difficult part of homebuying for many first-time homebuyers. 

Homebuyers seek help through the process

Along with saving for a down payment, filling out the many complicated forms trips homebuyers up, too. Paperwork is the most difficult step of the homebuying process for 18% of all buyers and 20% of younger millennials.

But to their credit, buyers seek help to navigate the journey, getting their information primarily from real estate agents. Eighty-six percent of homebuyers work with agents, from whom they seek guidance for aspects like finding the right home and negotiating sales terms and prices.

They also need financial assistance, as 97% of first-time buyers finance their home purchases with an average down payment of 6% from their own pockets.  

How homebuyer education can help

Framework homebuyer education preps homebuyers for the entire home buying process starting from the very beginning. Before buyers begin their journey, they’ll learn how to save for a down payment, shop for a mortgage, and interview and choose a real estate agent. 

It teaches the potential pitfalls involved in buying a home, preventing headaches for agents and mortgage loan officers, and delves into home maintenance, equity, and refinancing. 

Additional curriculum topics include:

• Down payment assistance programs
• Fixing credit
• Determining price range
• Finding the best interest rate
• Home maintenance

In fact, our data shows that buyers who take the Framework course before buying a home are twice as likely to feel prepared for the process.

More benefits of the Framework course

While some homebuyer education programs require in-person classes, Framework is taken completely online and can be accessed via a desktop computer, tablet or smartphone. It fits neatly into the typical home search process, for which 96% of homebuyers use online tools.

Additionally, the Framework course:

• Meets National Industry Standards for Homeownership Education and Counseling
• Costs just $75, while many other courses cost around $100
• Is completed in just 4-6 hours
• Counts toward many mortgage products, grants, and down payment assistance, and first-time homebuyer programs

Homebuyers still face a challenging market this spring, and homebuyer education is the best way to prepare for the road ahead.

There’s a reason why 97% of our course takers would recommend Framework to family and friends who are thinking of buying a home. It covers every step of the journey, from prepping for the process to living in their new home.