Who Will Buy in 2009?

I attended a home buying seminar this weekend and had an opportunity to speak with a lender. He owns his own bank and has 10 loan officers. I asked him where he thought the business would be next year. His answer was very definitive: first time home buyers and investors. The inventory will be about 50% foreclosures, at least in Maryland/DC/Northern Virginia market. First timers and investors are poised to take advantage of this inventory.

First time homebuyers? But we thought there were no options for this buyer because all the money had dried up. We were wrong. What we found out at the seminar is that there is still a very robust source of money for the first time homebuyer...some of it income driven, some of it credit driven. If you want to sell houses next year, now is the time to learn about all of the loans and grants that are available through the states, counties, cities, rural areas, etc. Research the CDA programs- Community Development Assistance - programs in your area.

There are Federal Grants that are income-based that need not be paid back if the homeowner resides in the home for five years. There are tax credits and other incentives, and yes, there is even a way to get 100% financing. Now is the time to talk to LOTS of GOOD lenders. Each banking institution has different program availability, so do your homework. I have some names I am happy to share if you need some recommendations.

Then, learn what is involved in selling/buying foreclosed/REO properties. Certainly your buyers will be wanting the best deals in town, and those will be foreclosures. Gather around you good lenders, title attorneys and home repair/remodeling contractors. Did you know that some foreclosures are in such bad shape, they cannot qualify for an FHA loan...BUT they qualify for construction loans?

Our world is changing every day. It is hard to keep up. Hopefully your broker is getting you up to date information and training so you are equipped to take on the opportunities of 2009. There will be business next year, but you have to know how to get it. Look for training and get as much as you can.