I know the media has a way of blowing things out of proportion for us in the real estate industry. When they preach it is a good time to buy, buyers go nuts. When they say don't buy now, nobody wants to buy. However, I have to say I have come across some amazing deals in this crazy market and buyers say they want to wait. Wait for what? Wait for the market to be a seller's market again? Wait until the house you can actually afford this minute is no longer affordable or available? Are you crazy?
One home I know of has come down $250,000 (from closed comps-owners owe little) and the sellers have to sell! No it is not a foreclosure, short sale, but a divorce sale! NO dealing with the nightmare bank tactics. These homes are upgraded, beach close locations, that are most certainly a sweet buy. They will bounce back, because they are located by the beach, along with up and coming Pacific City and The Strand.
Do the media care what they are doing to the economy? Do they realize they can throw us into a recession just by what they write and report? Who puts their money right back into the economy? People who work in the real estate industry are a large contributor to our economy. Who do they think buy the nice cars, buy homes in a profession they are exposed to on a daily basis, wine and dine their clients, promote mass marking campaigns, spend money on mailers, giveaways, business cards, notepads, and the list goes on and on. If no one is making money in the real estate industry, a good proportion of economy spending halts. All I can say is it is going to be a tight holiday this year for many people. Stores no doubt are going to feel the crunch. Agents have even gone so far as discussing a movement not to advertise in the newspapers. Why should we give them our money to help them promote negative real estate?
Then when the market turns around, the media will write about it start another wave movement that could change the real estate industry to a seller's market overnight. Only then my buyers wouldn't be able to afford what they can now!
How do you get buyers to realize this is a great time to buy?
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Noelle,
Good post. I think if a buyer purchased the home that is $250,000 lower now than it was when it first came on the market when it was at full price they would probably be very unhappy with their agent. The market is still dropping and buyers are nervous. I would do a market study on the area they want to buy in and if it looks like a buying opportunity the facts will show that to them. I would also tell them no one can time the market and if you can buy a home in 2007 at 2005 prices it's a good thing. I feel your pain. I'm in San Diego and I have seen homes drop dramatically too. I'm thinking this down turn still has some legs. I'm positive but gosh darn I'm honest. The news is just doing their job - use it to your favor.
Mike Lewis