Shay Study Finds Kamala Harris’s Housing Plan Could Help First-Time Homebuyers Save Thousands
Oct 16, 2024
For many first-time homebuyers, the biggest hurdle to purchasing a home is the large upfront cash needed for down payments and closing costs. But a new analysis by Shay, a self-representation platform for homebuyers, suggests that Kamala Harris’s proposed housing plan could significantly reduce these cash needs.
Shay’s Survey Results: Cash Needs Reduced by 33%
Shay recently conducted an analysis using its housing calculator, which shows that under Harris’s housing plan, first-time homebuyers could reduce their cash needs by an average of 33%. The plan, announced by the Harris campaign, includes $25,000 in down payment assistance for qualified buyers who have paid their rent on time for the past two years. Although some details of the plan are still emerging, the potential savings for buyers are clear.
How First-Time Homebuyers Benefit
Shay’s closing cost estimator, released earlier this month, has been a useful tool for homebuyers to calculate their closing costs and explore how the Harris plan might impact them. The estimator takes into account factors like down payments, closing fees, and buyer agent fees, and it helps homebuyers gauge their eligibility based on current campaign details. According to Shay’s data from the calculator, first-time buyers reduced their estimated cash needs by an average of 33%. And for those who opted to self-represent, the savings were even higher—an impressive 40% reduction in required cash.
“First-time homebuyers stand to gain significantly from this program,” said Peter Jeffrey, CEO and Founder of Shay. “The down payment assistance would drastically reduce the amount of cash many buyers need upfront, which is one of the biggest barriers for those trying to enter the housing market.”
Self-Representation: An Even Bigger Savings Opportunity
Shay’s analysis also revealed that homebuyers who chose to represent themselves instead of using a real estate agent saved more on closing costs. Those who self-represented saw an average 40% reduction in cash needs, compared to 29% savings for buyers who used a realtor. As real estate agent commissions are a large part of the closing costs, self-representation is emerging as an appealing option for buyers looking to cut costs.
“Self-representation is a great option for cost-conscious homebuyers,” Jeffrey added. “Platforms like Shay provide the tools and guidance needed to navigate the complex homebuying process, without the high fees of a traditional real estate agent.”
What Does the Future Hold?
While the Harris plan could provide much-needed relief for first-time buyers, some details are still unknown. Shay advises users to be aware of potential second-order effects, like changes in housing prices, that could arise as more details of the plan are unveiled.
If you’re a first-time homebuyer curious about how this program might impact your costs, you can use Shay’s closing cost calculator to estimate your potential savings. Visit getshay.com/kamala to learn more.