Women Home Buyers: Breaking the Gender Gap
The real estate market is a fascinating place, and it is constantly changing. In recent years, women have been playing a larger role in the housing market. However, there are still some areas where women are lagging behind men. One of these areas is home buying. In this blog post, we will take a closer look at women home buyers and the gender gap in the real estate market . We will also discuss some of the reasons for this gap and possible solutions.
In recent years, the housing market has undergone dramatic changes. The gender gap between men and women who buy homes has greatly narrowed, and women are now outpacing men in buying new homes across the United States. Women make up nearly two-thirds of all first-time home buyers, and that number is expected to continue growing as more young women enter the workforce—and into the homeownership market.
Why single women own more homes but get lower returns than single men
Single women accounted for 22% of all home buyers in 2020, while single men accounted for 9% only. This was according to the housing trends report of the National Association of Realtors. Surprisingly, a Yale study showed that single women spend around 2% more to buy a house and that they sell it for 2% less.
Although 2% may seem small, when you consider the cost of a mortgage, a single woman is losing an average of $1,600 annually compared to single men in similar houses. Researchers found that the gap in size is dependent on how long you have lived in the house, and the gap decreases the longer you stay.
The 2% trend had an additional flaw. The discrepancy was less when single women purchased from and sold to other women.
Divorce can have an impact on the number of houses single women own. This is because they often get the house in divorce settlements. Many other factors could explain why women are buying more homes than men. Women are more likely to earn college degrees and take less risk in making money-making decisions.
Why single women's housing is paid more and sold for less
A few factors could explain this gap. These standout factors include the negotiation process, market timing, as well as potential attachments to a property.
While some studies show that women are less likely to negotiate than men, a more recent study that examined salary negotiations revealed that while women "ask" for the same amount as their male counterparts, they don't receive as much. In bargaining situations, some prejudices and social perceptions against women might be involved.
These issues could be more complicated for women of color . It is more difficult for women to have the information they need and to be better negotiators than their male counterparts to get their desired results.
Although biases can cost women more money when buying a house, some steps can be taken to help single female buyers overcome these prejudices in their bargaining.
Yale's study found that single men's market timing was better than single women's approach which plays an important role in investment return. Statista shows that single-mother households are 368% more common as compared to single-father ones. You may not be able to negotiate a better deal if you add children to your market timing mix.
Not Seeing True Value
It's possible that women need to work harder than men to achieve the same results, or they may need to do more research to seem as knowledgeable. This is hard to say. Although situations can change from one case to the next, you will likely see better results if you are better prepared and have more confidence.
10 Tips for Single Women in Housing and Finance
While we can't influence the thoughts and actions of others, there are some things women can do that will improve their bargaining skills and make home-buying more enjoyable.
Here are 10 more tips for repeat and first-time buyers to help close the gender gap in housing and be better homeowners.
Know your rights. You can recognize discriminatory or shady practices by researching your rights as a homeowner or buyer. The U.S. Department of Housing and Urban Development (HUD) offers a vast network of information and assistance regarding housing.
Increase your credit score. Obtaining the best mortgage rates is crucial to getting the highest return on your investment. You need a good credit score to get the best mortgage rates.
Get professional advice. Talk to a mortgage specialist. Even those with a good knowledge of home buying can benefit from the latest trends and insider tips that experts can offer.
Compare sales figures and stats to determine the property's value. You can start by looking at similar homes in your neighborhood. Other indicators such as the unemployment rate and growth in the area can be used to determine a home's worth. These numbers will show you the potential investment of your home.
Consider special loans with low-interest rates. Take advantage of other resources and programs to get the best mortgage deal. You have many downpayment assistance options, including grants and loans with low or no interest.
Get to know the motivation of the seller. This will help you not only find a better negotiating strategy but also establish a personal connection. You can conduct a public record search or check if the current owner is a mortgagee.
It is crucial to have an expert inspect your home. It is important to have any potential purchase checked because it's easy to lose your investment if you don't have a home inspection. You can use the home inspection report as a bargaining tool.
Show that you are a serious buyer. You could offer large earnest cash money, or attach a preapproval note to your bid.
Try different negotiation strategies to get the best deal. You should tailor the tactic that you choose to use to your market, your property, and the seller's circumstances. Ask your real estate agent for their experiences and any suggestions.
Be patient and understand when to walk away from a deal. Finding a home can be exhausting, but you must remain positive even when things don’t go as planned. You can manage your expectations and deal with disappointments positively.
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