A boomerang buyer is a buyer who lost their home in the housing crisis of 2007-2014 and can now purchase again. They may have been renting either due to financial reasons or were hesitant about buying again.
When serving a boomerang buyer, there are several things you should keep in mind to reach out to this demographic and help them find a home:
They Feel Forgotten By The Housing Market
Because boomerang buyers have typically seen less targeting than Millenials and Boomers, they may feel forgotten by the housing market. By focusing on this demographic, you will be showing them that you take their home search seriously.
They Have Been Renting Their Homes
Boomerang buyers will most likely have been renting since foreclosing on their old homes and are saving up to buy again. Or are maybe never planning to buy again. When marketing your real estate services, target areas like condos and apartments. Point out the advantages of buying over renting, such as home equity and tax benefits from paying on a mortgage.
They Have To Reestablish Their Credit
Boomerang buyers may have to reestablish their credit. After foreclosure on a home, their credit will have taken a hit, and it takes time for it to recover. Foreclosures remain on a credit report for seven years from the date of the first missed mortgage payment that led to the event.
If your client is still working on reestablishing their credit, let them know of different programs like FHA and USDA loans that can be forgiving of a below-average credit. Boomerang buyers will have to take homebuyer classes, but the extra effort will be worth it.
Boomerang buyers should also slowly build up their credit again through:
- Paying all bills on time
- Opening a secured credit card
- Checking their credit report for errors
They Are Very Aware Of Their Budget
Because of the previous financial crisis, boomerang buyers are very conscious of their budget. Take the time to make your client feel comfortable with the process of purchasing again. When searching for homes, keep their budget well in mind and talk to them about the different homebuyer programs, as well as low downpayment options.