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The Seduction Of The First Time Buyer

goldman

"All that glitters is not gold,
Often have you heard that told:
Many a man his life hath sold,
But my outside to behold:Gilded
tombs do worms enfold. (II.7)" Shakespeare-Merchant of Venice

Well...we've gone and done it! We've created the monster.....we've succeeded in convincing the First Time Home Buyer that it is a Buyers' Market......HA!!

Seduced by the prices and the promise of a bargain they are seeking out "the pie in the sky"

They eagerly go on line,every day, pulling up picture after picture of the "perfect house"....It has granite counter-tops, walk-in closets, hardwood floors and on and on. But somehow they miss the phrase "Subject to Third Party Approval". Or worse yet..... the word Foreclosure.

OK...you say...so we give them "the talk" We explain about endless waiting that doesn't always end positively, neglected systems that will add $$ to the cost, one sided terms that put them at risk (not to mention little recourse.)

So armed with info off they go ...brave settlers like the Homesteaders of old...off to settle new uncharted territory.

Ahh....but wait! Now there is more! New obstacles are blocking the way...

Lenders terms

Mortgage Insurance Companys with hands outstreached

Clue Reports

Declining Markets

Appraisal,appraisals,appraisals

Yup....it's a Buyers' Market....HA!!

~~~~~~~~~

Concord NH Area Realtor

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Joan Mirantz - Joni is a Realtor® with Keeler Family Realtors, a locally owned, Customer Service oriented Firm.
Joan Publishes a monthly Newsletter "Food For Thought" under the pen name Realtor Sherpa.
(Joan also answers to Miz Maven and Miss Joni.)

Joan works in Buyer and Seller Representation with concentrations in the Merrimack Valley Area and towns surrounding Concord NH - the Capital City.
"I love what I do, and it shows in how I do it"

www.yourrealtor.biz

Posted by Joan Mirantz- Concord New Hampshire Realtor on 07/23/2009 03:00 PM

Comments (56)

Buyers Market in the ActiveRain Channel

buyers market, short sales, foreclosures

Originally posted at: Concord NH~Joni~Merrimack County : The Seduction Of The First Time Buyer

This post has been included in New Hampshire Information
Post is included in group: Short Sale Specialists & Pre-Foreclosure Education
Post is included in group: Realtors®
Post is included in group: New Hampshire - Real Estate and Life in The Granite State!
Post is included in group: Internet Empowered Consumer

56 Comments on The Seduction Of The First Time Buyer

JUL

It WAS a buyer's market.

Up until about 6 months ago.

The tide has officially changed.

With some advice of some friends on AR, we have determined that we are in a LENDERS' MARKET.

ANd then the buyers think that they can buy $500k houses for $200k and get the seller to rebuild the house, pay all the closing costs, and and and.....

Lenn,

I so agree that it is indeed a LENDER'S MARKET. Buyers and sellers have to sit and wait for the phone/email to ring.

Hi Joni... Very well stated! Congrats on the Gold Star! :)

Ralph...things haven't quite done an about face here on the East Coast....but we are settling towards the middle!

Well said Lenn- Lenders Market- very true

Hi Lenn....yup I think that blog of Williams....said it all!

Lise.....LOL

Thanks Steve,

That will certainly lure me back....LOL

Hey I talk to you on FaceBook all the time and you never answer!!(sob)

Joni - it's always a challenge to try to educate buyers ... especially first time buyers. These folks are being 'coached' by the mainstream media, their neighbors, their families, their co-workers ... heck! even the cashier at the grocery. The saddest part is they are not truly listening to the professionals.

So ... they find 'the' house, they write an offer, they tell all their friends and families they are about to be homeowners ... and then the wait begins. Days, weeks, even months pass and no response from the lenders. The buyers are blaming the agent for not speeding things along, the bank is blaming the agent for something ... anything ... and what should be a joyous event becomes an absolute nightmare,

The only thing to do, IMO, is to absolutely haunt these loss mitigation departments. Become the only voice they can remember hearing all day, every day. Perhaps if they get tired enough of it they will respond .. or not. You may just wind up in voice mail hell.

There is no simple answer. We can only pray.

Joni, What a welcome face to see on the dashboard! Your post is so true and it doesn't seem long ago that it WAS a buyers market. So many people are not aware of all the obstacles now that are preventing sales--this post is an excellent wake up call.

It was William Johnson. Right you are. I couldn't remember who. Thanks.

Nice post Joan, although I do have to follow suit and go along with Lenn on this one. It is DEFINITELY a lender's market in my area, and a buyer's nightmare! But what a great biz to be in, eh?

Lenn, I agree, it is a lenders' market. I spent the morning in a wonderful class with Gee Dunston telling us all about the new Fannie Mae, Freddie Mac guidelines. Made me want to cry. Great class but wow...scary.

I must go read a few pages of "The Energy Bus" right now before I get depressed.

A new take on our "Buyers Market," I like it. A Lenders Market - Yes that's it, I just hadn't come up with calling it that yet!

Joan, Buyers Market??? It's been a buyers market for years!! I think much of the public already knows this with plummeting house values...

Joan, I believe our first time home buyers market is in process of a shift! Young couples and others, frustrated with all of the oh.. that's under agreement, oh.. that's a short sale.. oh.. your bank won't finance this property.. and on it goes!

Joan, first time home buyers are wonderful to work with, but have a vision of buying for 50% off. The words "buyers market" doesn't mean they can steal the home, just buy for less than what the home was worth in previous years.

Very funny. Buyer's market unless they want a good home that is well priced and then it is a seller's market.

Hi Joni,
It so good to see you back and what a way to make your reappearance! A great post.

It isn't a buyers market here in Metro Detroit Michigan, it is a lenders market if you are buying a metro Detroit foreclosure.

Our market in SW VA is not as bad as some of you have....our problem is that buyers think that they can buy homes for 20-30 percent off when our actual sales are running 96% sale to list.

There are so many variables out there today it's enough to make one's head spin...and spin...and spin...

Hi Joan, Congratulations on this great feature. And thank you so very much for your wonderful personal note about Tinker. You are so darn sweet and a wonderful friend. Many thanks Joan.

Hi Joan~ I love the term posted here that is is a "Lender's Market" Gosh, that is a good one! Welcome back!

In the lower price ranges, it's not a buyers' market here in Orange County, and I warn my buyers from the beginning to expect to make several very competitive offers before having one accepted and then expect to wait months for the banks' decision.

JUL

I hear ya on the buyers that bring to (y)our attention the house that is PERFECT only to note is a short sale, and odds are . . . it won't even close (let along to them!) But, I don't mind foreclosures as much as I mind short sales. Thankfully, this short selling cycle will have an end and the glut will either be our of inventory . . . or back in again as a foreclosure. In time, those will be gone too! Back to normalcy?

it is not a buyer's market. .not a seller's market . .it's a REALTOR's MARKET!

Joan, I'm so happy to see you featured! Congratulations! Great post and well deserved!

Great post! My how things change so quickly.

Hi Joan -- Glad to see you are BACK... and FEATURED!. I think you have a good handle on this New Hampshire market ... and William's post was so accurate... it is a "lenders market".. Where were they when we needed them?

I agree the lenders seem to have the upper hand. But I guess they have to. First time buyers should be advised to of the process before getting any surprises at the closing.

Hi Joan,

Congrats on your featured post today. It's right on.... I love the saying, "alll that glitter is not gold.... " so true.

Patricia Aulson/portsmouth nh real estate

Hi Joni - oh, well, at least the buyers are back out!

It's great that the Buyers are back in the game, a good sign for things to come. I do agree, they think they can buy for 10 cents on the dollar, and they need a dose of "reality". Loads of inventory, but so may strings attached to finally getting it to close. A challenge to agents for sure, but a test to seperate the "men from the boys" (or the "women form the girls")

Re-educating buyers is the hardest part of my job. First time, move up, investors, what ever. They all think they can through in some low ball offer and walk away with it.

The streets are paved with gold! See it in the buyers eyes! I'm with a few others, it's a Lenders market!

I find that the "talk" does not stick.

CarolS...Hi Buddy-nightmare is the key word-the fun is disappearing!

Hi Carole...good to see you too! Trying to get back in the swing!

Jean....I'm personally starting to think this has been the Banks call from the beginning.

Denise....see above answer!

Hi Gary....they seem to be stabilizing here!

Lori....I really feel for them!

Kay....so true!

Bob....nail on the head

Hey Cynthia...you still look the same!LOL

Russ...they pretty much call the shots everywhere!

Chris....no wonder no one can figure it out-especislly a first timer!

William....Huggs

Thanks Vickie!...everyone has given me such a warm welcome back!

Christine....a new "breed" of Buyer is evolving!

Carla....normalcy??? I'd forgotten!

Fernando...Lord, You sound like my Broker!

Hi Sharon....long time so see!!

Thanks Kim

Hi Joan....we need to catch up!

Bryan....unfortunately it seems to go in one ear and out the other!

Hi Pat...hope all is going well out your way!!

Hey Brian...yup....till they get slapped down a few times!!

Deborah....I think you just came up with a Blog Post!

Gene...It's universal!!

Lyn....unfortunately that's true!

Dianne....you noticed that too! Third time never fails!

Unfortunately a lot of these first time home buyers, and non-first time home buyers for that matter, are just giving up and opting to rent. If the lenders don't watch it they could end up losing this once enthusiastic bunch and having an s-load of properties on their hands again. Don't get me started either on the underwriters. Seems they make up new rules by the day. Good post and best of luck.

First time buyers are the most important cog in the machine. If they don't, or can't buy, the next level can't buy and so on...which is why it all happened to start with.

Keep it affordable for the first time and entry level buyer and all will be much smoother sailing. When a seller needs to sell they need to sell at whatever the market will allow...the same isn't true for buyers...they can buy either when they can afford it or when they so desire to. In our area, now is a good time to!

I just had the following question proposed to me with a request to write a response for the California Association of Realtors monthly publication, which I just finished and sent off moments ago. Then, I check my email and there is THIS post from AR pops up...so interesting!

The question to me was:

"How have you convinced an on-the-fence, first-time buyer that now is an opportune time to purchase a home?"

The following is my Response to CAR:

I have to admit, like many Realtors out there in the midst of this short sale and foreclosure market that we find ourselves in currently, I do see a few very good buys from time to time.

Personally, I know of several potential first time home-buyers who are chomping at the bit to plunge into the wonderful world of home ownership. It's nice to see that sort of enthusiasm, especially during such unstable economic times.

However, I must admit that I have NOT convinced any of these on-the-fence first-time buyers to purchase property, I don't think it's ethical to "Convince" these folks to purchase homes in a climate where we see so many properties still declining in value.

Now, I understand that this philosophy may not find me popular among other Realtors at the moment, but I feel that we have a fiduciary responsibility to a first-time home buyer to educate them about the possibilities and consequences of a further declining marketplace. Everyone seems to want to get the contract signed and get the buyer in escrow, but first, I hope each of us has taken time to fully explain to our first-time buyers the cons associated with today's marketplace, as well as the loudly touted pros of home ownership with regards to the current economic climate here in California.

The vast majority of first-time home buyers have worked hard and struggled to save their pennies for a down payment and closing costs, and we have to take a step back and realize that this is hard earned currency, even more difficult to have saved during this financial crises and it is not just some monopoly money that grows on someones tree in the back yard.

Everyone has the right to own a home if they can afford to own a home, they also have the right to be educated and well informed by their Realtor that this "Marketplace" is just that...a marketplace. I've watched prices skyrocket over the years, I think we may be entering into a different kind of world when the real estate market does make it's long awaited comeback from the dark abyss that it has entered in to these past years.

I have to say that when I saw a condominium that sold in 2005 for $359,000 come on the market, now rolled back to a sweetheart of a deal a few months back at just $148,000...I thought THAT must have been the deal of the century. Then...the next one was sold for $139,500, then another one went for $128,000, and now all the way down to $119,900. I could not imagine that that condominium would have ever fallen below the $148,000 mark, especially in such a brief period of time.

We all want real estate prices to stabilize, and I believe that will happen...in time.

Still, in the meantime, lets not spent too much time trying to "Convince" these tender folks into spending their dollars just yet. And let's not forget that sometimes there just happens to be a pretty nice view from up there on that fence sitting position.

Broker-Granny

www.ActiveSunshine.com

JUL

Buyer's are competing way too much now for this to be a true buyer's market, especially here in Beaumont, California, were REOs (the only game in town, it seems) are slim, prices are baited, and properties get consumed instantly by a buyer/piranha frenzy.

Jerry...I think we all feel the pain! We are the ones out there trying to heal the wounds....the rest are a voice mailbox in that deep dark hole!

Mike....it really is just common sense isn't it? When did the "powers that be " lose that sense?

Carol....Your response would make a heck of a good Post!!

T & D...it would appear we haveonly substituted one monster for another!!

Just like all good housing data is local, local, local so the market local, local, local. Granted, the 'sellers market' of yesteryear has gone the way of the dodo bird but in our neck of the woods where folks reguarly leave, come back and leave again the market is simply the market.

I like your style,

Michael

Why thank you Michael...a true Southern Gentleman!

I think many first time home buyers think they can get the perfect house for cheap but after going through the process, reality hits. The market is really changing here and sellers are not giving as much as they used to.

JUL

Patricia....this appears to be one of those pendulum swinging situations....I agree. I think Sellers are starting to feel bruised and are fighting back!

JUL

Hey Joan: Great post. We have a buyer who has entered into a deal with that "third party" and so far things are going okay. The first time home buyers are so excited about their tax credit, but they don't see the time is flying and soon they might just be out of luck, especially if they want to try that one last short sale . . .

AUG

Hi all. I have enjoyed greatly the second blooming... suddenly you find - at the age of 50, say - that a whole new life has opened before you. I am from Herzegovina and learning to speak English, give true I wrote the following sentence: "The minute hand features the piston cup." Regards :( Kaniel.

AUG

Joan the prices are lower than before, however, it seems that the Sellers have many more options than the Buyers do.

AUG

Mark...I definately agree...the Buyers are handcuffed by all the new rules, regulations, requirements and restrictions....it's a maze of confusion!

SEP

Congratulations on a job well done. Thanks. I am from Nigeria and learning to read in English, tell me right I wrote the following sentence: "Better than provillus, changes itching american, natural or parasiticidal symptom are most away maintained." Regards :P Raul.

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