What Every First-Time Home Buyer Needs to Know – Zach Peck
On this episode of The Closing Table, we sat down with Zach Peck!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Zach Peck…
The conversation starts with a this or that icebreaker on cash, credit, conventional loans, and more. Zach then talked about making the decision to join his father’s real estate business, and over the course of 11 years, he has experienced both pros and cons of working with family. On the positive side, Jeff’s relationship with his father has grown stronger and he found it helpful to learn the business from someone he trusted. Starting with a small company after graduating from college, they worked their way up from the bottom.
Moving on to the current market status in the Greater Lansing Area, Zach explains that the housing market has seen some appreciation since being tracked in 1978, growing at a rate of 4% a year. However, in 2020 the market got ahead of that trend, and in 2021 and 2022, the appreciation rate has slowed down to 2-2.5%. Based on this, it could be said that Lansing is currently overpriced by 4-7%. Nevertheless, Zach believes that Lansing is still a great place to live, with a median home price of 179k compared to other cities where the median price is 400k. Thus, he considers it to still be an affordable place to live considering the prices and the quality of life. Although the market has experienced a correction in the last 7 months and may continue to do so for a month or two, he doesn’t foresee it crashing any further.
When it comes to the real estate market in Lansing, MI, seasonal fluctuations are common. Zach shares that the last fall and winter seasons saw seasonality return to the market, which is historically normal. Although in 2020 and 2021, the market was continuously moving without experiencing the usual seasonality. When it comes to selling, fall and winter can be beneficial in terms of competition, while summer and spring provide more choices for homebuyers.
Kevin then asked Zach about sellers being required to provide a disclosure statement to buyers that lists any known defects or issues with the property. Zach explains that this is one of the leading causes of liabilities for sellers. He emphasizes the value of disclosing everything to realtors and buyers and notes that they can assist in making the situation better. The two then walked about appraisals and inspections where Zach explains whether or not someone should utilize various sources for these. He notes that the only time a person would be required to get more than one appraisal is for houses that have been flipped, especially if the flipping happened in 6 months or less, in which case two appraisals are required.
Next, Kevin shares some facts on how houses in Ingham, Clinton, and Eaton Counties, the median year a home was built is 1975. When it comes to their clients’ preferences for newer or older homes, Zach shares that they have a mix of both. Some people prefer the charm of an older home, while others prefer the customization of a newer home. He also talked about how over 80% of their yearly business consists of repeat and referral clients. He explains that they incentivize clients to not only choose to work with them again but also refer them to others by following up and hosting client appreciation events throughout the year to stay in touch with their clients.
The conversation wraps up with the two discussing the common struggles of first-time homebuyers, Zach notes that there are two things they struggle with the most: not knowing the process in general and being nervous to reach out to agents in fear of being sold. He shares how their team approaches these situations, especially for buyers who are not yet ready to buy.
Check out Zach Peck:
https://www.facebook.com/zach.peck.58
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