surveyBefore the home buyers tax credit was extended through April, 2010 and expanded to include more buyers, a survey by move.com indicated that only 1 in 20 people surveyed said they would buy a house next year.  Why?  The top reason was that they felt that home prices had hit bottom.  This was more important than bargain priced foreclosures, concerns about interest rates, and the pool of available homes.

This revelation feeds into our ongoing discussion of glass half empty/glass half full approach to real estate.  Of course, the number of people who might say they are planning to buy might increase in view of the credit, the responses indicate people are concerned about economic stability in our recession-prone world.  It remains our challenge to seek out qualified buyers who might be in a position to buy in the right circumstances. 

Some people with credit problems might be interested but will not qualify for the best rates.  We can increase our sales among this group by encouraging them to clean up their credit report, directing them to an affordable home, and directing them to a lender who can help them.

Some of us focus more on the credit-stable buyer who can afford a pricey house, but millions of solid Americans with "issues" need our services too.

Commitment:  I will look for ways to beat the 1 in 20 statistic and increase my business.

Deadline: _________________

Bob Corcoran

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19 Comments on Survey Says: Only 1 in 20 Respondents Say They Will Buy Next Year

NOV
16

Interesting survey. Most of the buyers in the DC metro are waiting for more inventory since they get out bided very time unless they have more cash or can pay a premium.

 

3:10pm • #1
212,451 Points 3 Featured Posts Localism Sponsor

Hi Bob ~ I saw that in the paper and was initially taken aback. Then I realized that I had no idea what the "typical" percentage was so I wasn't going to worry until I did.  Do you know what that percentage usually runs?

Liz

4:36pm • #2

Apparently in this survey,2/3 were already homeowners & 1/3 were renters.  I am unsure if this survey was  ever conducted prior to this year but previous surveys were done in March and June, 2009 offered similar results within a point or two.

5:44pm • #3
NOV
17
173,918 Points 3 Featured Posts Outside Blog

The operative words are directing to affordable home and lender who can help them.

8:56am • #4
211,044 Points 1 Featured Post

I didn't think this sounded so bad....thinking about my neighborhood. 2 streets of single loaded streets has over the 20 people (households) in this statistic. If 1 house wanted to sell.....that seems like a lot to me.

9:05am • #5

One in 20 sounds really good to me!! :)  I heard a statistic that you have to knock on 100 doors before you get one potential client.  I think the media presents a gloomy picture which at times discourages people from moving.  It is our job to educate, and let people know about their available choices!!

9:35am • #6

Even with the high number of foreclosures we have here inventory is down allowing fewer choices.  Also due to high unemployment some buyers can not buy right now.  And again many of my potential buyers credit is to low to qualify. 

10:31am • #7
231,182 Points 1 Featured Post Localism Sponsor Outside Blog Hit Router

There are a lot of factors.  Uncertainty about the future and the economy is the main one.

11:12am • #8

Actually, I agree with your comments. One in 20 isn't too bad.  The question - unanswered in the survey & perhaps unasked - is how many would buy if economic factors were different?  That's something we have to figure out in our local market.  Since the tax credi passed it will be interesting to see if the % of interested home buyers changes by the time the net phase of this survey is conducted.

11:20am • #9
Outside Blog

Interesting thought, but is 1 in 20 more or less than in previous years?  Is that weighted for areas of the country that are hard hit (Detroit) or still having sales increases and appreciation (Houston TX)?   Its an interesting media statistic that really doesn't touch on most of our varied markets throughout the country.

12:51pm • #10
218,404 Points 14 Featured Posts Outside Blog

Hi Bob.  If one out of twenty people that I market to move, I will be a rich man.

My guess is over the last 4 years, the annual move percentage has probably been less than 5%...

Thanks so much for writing,

Ken

1:00pm • #11

Bob,

You and your colleagues make valid points. Why not keep your less than perfect credit clients for yourself and in three to six months I can permanently delete over 70% of derogatory items from a clients credit report. Now you have a qualified home buyer.

We are an attorney owned company, we are registered with the State of Texas Secretary of State and we are bonded. We also have the only true money back guarantee; 100% money back guarantee minus $50 for each account permanently deleted.

Let me increase your percentage of sales in 2010.

Luis Madrid

National Consultant

RCS Credit Solutions

214-628-8511 Office

214-679-8577 Cellular

2:55pm • #12

1 in 20?  A light at the end of the tunnel... LOL  

10:19pm • #13
Outside Blog

1 in 20 sounds a little low to me, but considering how bad it has been, maybe not so bad.

11:45pm • #14

There are a lot of unanswered questions about this survey I mentioned. One in 20 could be great, could need improvement.  The point is, the percentage should go up with the credit.

Some clients who can't buy today may be good candidates later.

11:55pm • #15
NOV
18
301,823 Points Outside Blog

Bob, good food for thought. Need to work on my marketing plan. I will use the 20:1 ratio. I would like it lower but...

10:52am • #16
NOV
19
4 Featured Posts

I'll keep my focus on the buyer(s) looking to buy 20 homes.. ;)

7:27am • #17

Frank, now that the credit as passed, the ratio may change.

Paul, 20 homes? sounds like you work the investor market. In Vegsa, I guess that's the right approach.

Good luck to you both.

9:16am • #18
226,201 Points 2 Featured Posts Outside Blog

Good point.  I don't hold much stock in a survey by Move.com but I do believe what people were waiting for the bottom.  Now there, credit clean up should be a priority.  In fact this year, I have made it a rule not to list anything over 400K as it is just not selling.  Another shift has been toward first time buyers.

11:23am • #19

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Bob Corcoran

Swansea, IL

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