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3 Compelling Reasons for Jumping off the Fence and Buying a Home

By
Real Estate Broker/Owner with Golden Girls with SW Desert Homes BR564219000

3 Compelling Reasons for Jumping off the Fence and Buying a Home

There are many reasons why a buyer might be “sitting on the fence” regarding a home purchase.  In the past three months I’ve heard comments like,
     “An aging family member has been ill and if something happened during escrow..."  (That was 5 months ago and now they could have been all moved in and moving on with life)
     I had a heart attack last spring and I’m worried the stress of moving might be too much for me...
     I just was hoping not to spend that much… (in looking at a $340,000 house with all of their criteria, and they are pre-approved for $410,000)
     I….(fill in your own examples here)

Two birds sitting on a fence

SOMETIMES, there are counter “arguments” to helping your clients to make a decision.  Today I received this first thought in an email from my favorite mortgage officer:

The emotional persuasion:
“I once heard a pilot say that he'd rather be on the ground wishing he was in the air...than in the air, wishing he was on the ground. And similarly, it sure is a better feeling to be in the home of your dreams at a great interest rate, even if rates or prices dip slightly from present levels...than to have sat on the sidelines during this truly remarkable time, and watch home prices and home loan rates drift higher – which they inevitably will – and know that you missed the opportunity of a lifetime!”

Convincing ready, willing, and able, first-time home buyers:
Most have heard the argument about renting is wasted money.  However, recent events have proven that home ownership can sometimes be a poor investment of money as well.  So, buying a home is a hugely important financial decision.  But, isn’t a first time homebuyer’s decision to purchase a LIFE investment? Some things are more important than economic recession:  Privacy, garage parking, outdoor space to enjoy at leisure, space to raise a family, etc.  These are things that a home can provide..

The analytical argument:
“Rates have edged up a bit this week and I know there are buyers still hoping rates will go lower.  I’m not saying rates won’t drop, but what people don’t realize is that rates can go up REALLY fast.  The chart below shows that on a $100,000 loan you lose $22k for every 1% the interest rate goes up.  WOW!  That’s a great reason for your clients to buy a home as soon as possible.

finance chart with mortgage rates

(2011 Mortgage Rate Predictions Chart provided by Dan Rawitch)

Arguments, scripts, compelling reasons, examples -- whatever vernacular you use in working with your home-buyers,  the fact remains that we sometimes lose ready, willing and able buyers by not presenting reasons why they shouldn't procrastinate, and why buying right now might be their BEST decision.  As agents, it's up to us to provide our clients with the best information we can, in the most honest way we can, with their needs foremost.

If at that point they still choose to stay on their fence, it's time for us as agents to move on to the next pasture.

 

Posted by

If I can assist you in your home buying or selling in Marana, Tucson, Oro Valley, or Vail, please don't hesitate to call me!  Email at Cara@SWDeserthomes.com

Cara Marcelle Mancuso, Golden Girls with SW Desert Homes

520-909-2988   

Regarding the material posted in my blog postings, All listing information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independently verified.

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Comments (5)

Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

All very good reasons for home ownership.  People need to think of reasons why rather than why not  when contemplating home-ownership.  In the long run everything points towards that end.

Nov 18, 2010 07:37 AM
Mike McCann Nebraska Land Broker
Mike McCann - Broker, Mach1 Realty Farm & Commercial Land Broker-Auctioneer Serving Nebraska - Kearney, NE
Farm & Commercial Property For Sale 308-627-3700

Great blog and logical comments....just be careful when you jump off the fence so you don't turn an ankle!! Might I also add...you can paint without getting permission on the inside and I quite frankly do not know how people live without a garage...I am not certain I could in our climate.

Nov 18, 2010 02:51 PM
Don Wixom
RE/MAX Executives Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

Cara, this is a great chart and excellent information for buyers to make a decision to buy a house in this most affordable time in decades!

Nov 18, 2010 03:35 PM
Cara Marcelle Mancuso
Golden Girls with SW Desert Homes - Tucson, AZ
Call a Marana neighbor, I'm THERE!

Exactly Jane...why, instead of why not?

Mike - good to see you.  I guess my biggest compelling reason for wanting my own home would be NO SHARED walls!!!  :)

Don - thanks!  Thought it was important to hit all the visuals - photos, charts, and hopefully compelling points!

Nov 18, 2010 03:49 PM
Petra Norris
Lakeland Real Estate Group, Inc. - Lakeland, FL
Realtor, Lakeland FL Homes for Sale

Cara - great points about home ownership. Although I will tell a buyer it is not a great time to buy, when the finances are not right and employment unstable.  On the other hand, there are some great mortgage programs such as VA and HUD which allow for 100% financing. 

Nov 18, 2010 10:36 PM