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Has October and Fed Rate Cut Brought The Buyers Back?

By
Real Estate Agent with RE/MAX Elite

Historically October sees an increase in sales in the Middle Tennessee area. This year we sure need it.

Has it happened?

Well yes, in a manner of speaking. Not like previous years, but in the last 2 weeks there has been a definite surge in activity. yay, right? Maybe. While there have been a couple of good clients pop up I have seen a lot of sub prime, hard to get approved or can't approve must wait loans come in as well. The return of contingent upon sale of home has also been marked here. I have several "clients" who have been trying to get approved and it is just not working. I know they are frustrated, possibly with me as well, I will not show property until a lender tells me they are good to go. Why set themselves up to get their hearts set on something only to be shot down when they don't qualify, as well as the time and expense I incur. I have had several become very offended when I told them to speak with a lender prior to viewing homes. In the middle to higher end the return has been more marked. Sellers seem to be "getting it" and negotiating more. Some buyers seem to think that a "buyers market" simply means that asking for the moon will result in aquiring it. Not so in my experience. Although sellers are more liable to negotiate in the current market temprature, it is not a fire sale. Reasonable offers and requests should still be the path to choose, you may someday be wearing the shoe on the other foot!

 

Vanessa Stalets
RE/MAX Elite
615-957-6333
615-661-4400
http://www.vanessastalets.com

 

Comments(1)

Matt Heaton
Timu Corp - CEO, ActiveRain - Co-founder - Bothell, WA
Problem is the FED rate cut had the opposite effect on mortage rates that many people assume.  Since the cut mortgage rates have actually risen, they are more closely tied to 10 year treasury yields than the FED funds rate.
Oct 09, 2007 10:05 AM