One of the key demographics in the world of real estate that is rarely spoken of is the boomerang buyer. This is a term that applies to the people who have gone through either a previous bankruptcy, short sale or foreclosure because of the past housing crises. These are also the individuals who have been saving up their money for years for a down payment on a home once again and who have patiently waited out the required lender expiration date in order to once again attempt to qualify for a home mortgage. Realtors everywhere are starting to open their doors for people who are once again venturing out as buyers after experiencing a major financial loss.
The profile for a typical boomerang buyer can range in age from 35 to 64, with the majority being in their 40’s and 50’s. It has been calculated that over 2 million householders lost their homes during and after the 2009 recession. Although previously hesitant to throw their proverbial hats back into the ring, economists are now speculating that this community of potential buyers will be so impactful that it will actively drive the next phase of the housing recovery effort. This is a big change from declaring millennials and first-time buyers as being the guiding force behind real estate profitability in recent years. The potential for wealth in selling to boomerang buyers is enormous.
There are several reasons that a boom like this one is taking place right now. One issue is that enough time has finally passed for peoples’ credit reports to start returning to a more desirable number. In addition, depending on the method that each person lost their home, the waiting period for home mortgages applications has expired. This includes all the variations, from three years for short sales, to seven years in cases of bankruptcy.
People who are in this demographic are a wise crowd. They have already lost their home(s) and they are very familiar with the entire process. Because of this, they are a more savvy clientele. They know what they are looking for and they especially know which pitfalls to avoid this time around. Advertisers often like to focus on millennials and first-time buyers, so boomerang buyers also tend to feel neglected. Brokers should expect them to do their due diligence and seek out a realtor/bank who caters to their needs, whether it be on-brand advertising or a low-interest, flexible loaning opportunity.