You want to buy a house. But you can’t. Or it’s just really, really hard. If that sentence made you wince, you’re not alone, and neither are your buyers. Helping buyers who can’t afford a house yet has become one of the most common, and most delicate, parts of a real estate agent’s job right now.
The math has changed. Back in the 60s, 70s, and 80s, a 20% down payment on a $20,000 to $40,000 house was normal. Now that down payment number is close to what a whole starter home used to cost. One of us started selling real estate in 2005, when the average sale price was around $110,000. The median price in our market today is closer to $300,000, and rates are nowhere near where they were then either.
Why Your Buyer’s Pre-Approval Isn’t the Full Picture
Getting approved for a number doesn’t mean that number makes sense for someone’s life. We’ve both had buyers send over a pre-approval letter that technically qualifies them for a house, only to realize the monthly note is more than they can actually stomach. That’s why the buyer consultation has to go beyond what are you approved for and into what are you comfortable paying.
Why One Lender Isn’t Enough
Grant programs, zip code specific programs, and niche loans, like a 100% financing option for doctors carrying heavy student debt, exist, but they change constantly, and not every lender offers or advertises them the same way. If you’re only working with one go to lender, you might be missing options that could actually get a buyer into a home. It’s worth reaching out to a few lenders and simply asking what specialized programs they have available right now.
Credit Re-Scores Can Change the Whole Plan
Sometimes a buyer isn’t ready today, and that’s okay, as long as they have a plan. A lender can run a credit re-score, showing a buyer exactly how paying down a specific balance would shift their score, and in turn, their rate. That kind of clarity turns I don’t know if I can buy into here’s what I need to do and when.
Why You Have to See the House Yourself
It’s tempting, especially when you’re busy, to let someone else handle a showing. But when it comes to writing an offer, you need to see the house with your own eyes. We’ve both learned this the hard way with buyers who ended up stuck with issues, like flood zones, rising insurance, or structural problems, that surfaced years later at resale. Some of those problems can’t be fixed, no matter how much a buyer loves the floor plan.
Helping Buyers Who Can’t Afford a House Yet, Without Losing Them
Not every buyer is ready today. But that doesn’t mean the conversation ends. Sending a congrats on your pre-approval email that sets expectations, staying in touch as they browse listings online, and being honest about what the market will and won’t give them keeps buyers moving forward instead of giving up entirely.
Want more of the real, unfiltered version of these conversations? Listen to the full episode, and come hang out with other agents working through the same thing inside the Hustle Humbly Community.
Leave us a review at RateThisPodcast.com/HustleHumbly
Get your FREE Database Template
Submit your topic ideas and toasts to Team@HustleHumblyPodcast.com.
Music:
Straight A’s by Connor Price
The Good Life by Summer Kennedy
Be The One by Matrika
