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)
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.
(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.
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