At the same time that Nevada is again leading the pack in foreclosures, existing home sales have increased 68% through April of this year. Prices are down 43%. It's a good time for people to buy affordable housing. Now more than ever before, this a time for Realtors® to educate buyers as to what is affordable and to discern who is likely to be a "healthy" buyer vs. and "unhealthy" one. More foreclosures are on the way due to sometimes careless lending in the past; as Realtors®, we want sales that will result in long-term homeownership, not foreclosure in 12 -24 months.
According to Devin Reiss, Realtor® and president of the Home Builders' Research, a Las Vegas company, "The key to understanding the foreclosure crisis in Nevada is the ability to distinguish between a healthy and unhealthy homebuyer. In order to re-establish homeownership, we have to stabilize the market by avoiding situations with a high risk of foreclosure."
Healthy home buyers are well informed about what is involved in buying a home. They have a stable income and buy something that they can make on the payments on, even if circumstances change slightly. Even if they pay no more than they would to rent, home owners have additional costs for repairs, maintenance, lawn care, etc. They understand the seriousness of making the mortgage payments on time.
Unhealthy home buyers may cut it so close that a minor change in life events would render them unable to pay. Often, they enjoy a lifestyle above their means and may want a house to match. Many "unhealthy" buyers don't understand their financing or the seriousness of the commitment they make when buying a home.
No sales person, Realtors® included, want to turn away a person who wants to be a homeowner. In the past, we may have encouraged marginal buyers to stretch to buy homes they might not be able to afford for the long run. Now, a responsible agent may encourage an unprepared buyer to wait 6-12 months before buying, look at least costly properties, or know the questions to ask the lender.
As Reiss notes, "The Realtor is not providing the loan, so they don't ask all the personal finance questions, but they make you aware of the loan itself so you know what to ask your lender and you're not going into it in the dark. The quicker we can get back on our feet with healthy homebuyers moving into these foreclosed homes, the better off our communities and economy will be."
Nest time, we will share with you the results of an interesting study on foreclosures done by the national Association of Realtors. In the mean time, if you are in the market for an affordable home, we can help you. Looking to buy or sell your home? Call us!
N & Y Team
Nebi Adhanom Direct: (702) 277-9922
Yonas Woldu Direct: (702) 236-8997
Fax: 702-898-9738
www.VegasRealProperty.com
Click here to get a market snapshot of your home value!
;)
;)
