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Good Market?Bad Market? Hell, it's your Market!

Drives me up a wall.

On one side of the fence, we have the drones that parrot the soundbites created by the bobbleheads at the National Association of Realtors. "Everything is beautiful. This is a great time to buy a home. Investing in real estate is a winning strategy."

Those folks need to play the knock-knock game..

You know....knock knock....who's there?....real estate investors......real estate investors who?.....real estate investors that have lost their collective ass in the market over the last two years!!!!!

The folks hanging around a Metro stop holding a styrofoam cup and cardboard sign know that prices have collapsed in the DC area. The vast majority of people that purchased a home in the last two years bought it for more than it could sell for today.

For them....the real estate market sucks!

Hello.................they are only a portion of the market. If they can afford their mortgage, they eventually will see their equity increase. So, today it sucks but the future is brighter.

That must mean that the market is great for buyers, or does it?

FICO is a nasty little four letter acronym that will define just how good the market is for anyone thinking of buying. Your credit score will open one of many doors when seeking a loan. Instead of the price is right (although, that fits) the answer will relate to the interest rate located behind your door.

How about this for a qualifier....It is a great time to buy if you have saved enough money to put 10% down and your credit score is high enough to make the best rates available to you. Change any of those qualifiers and the market turns sour faster than a glass of milk sitting in the desert sun all day.

How do you know? Well, you don't. When you don't know the answer, it is time to speak with an expert.

The naked realtor stands ready to answer your questions. All the wisdom of the talking heads will be set aside and your personal situation will be analyzed. It could be your time. And then again, it may be time to slip back into the cave and hibernate until your situation is more favorable.

Send me a note....click here I will make time for you.

Posted by John MacArthur on 02/14/2008 03:51 PM

Comments (18)

bad market, buying, good market, naked realtor, selling

This post has been included in Maryland Information Montgomery County, MD Information

18 Comments on Good Market?Bad Market? Hell, it's your Market!

FEB

2008

Absolutely honest and to the point. It may not be a good market for everyone but for some it could be a winner.

John, Great post! So true. It puts things on the line and tells people where they have to be.

Great article John. I love straight talk.

I saw that (*^%$&* NAR ad yesterday and all I could think is that it is designed to send buyers to agents to seek good investments. Geez.

John - Well put, no bells or whistles or fancy fine print....just the truth. If people don't appreciate that, they may need to go looking for a clue.

John, the tragic element of the human mind is the propensity to generalize. We want so much to have stuff fit into a tidy box. Sometimes the most honest answer is "It depends."

I'm with you. Every buyer's situation is unique. It just doesn't make for sexy advertising.

Cindy - You are so close, on a warm afternoon I smell your perfume in the breeze. You know that our market is not neighborhood to neighborhood. Our market is literally house to house. Each holds it's own set of circumstances.

Marc - It seem wiser to share that individual facts do not match up with the generic overview. The truth, like the market, is good or bad depending on each person's unique situation.

Lenn - I am convinced that the double speak we are subjected to daily is generated by a much younger crowd. As you become seasoned, tasting one year and then another, you have little patience for those that use so many words the truth is hidden and even less patience for those that refuse to tell the entire story.

Jason - I have little talent for the placement of bells and whistles will be forever beyond my reach. I was proud that I got one little clip art in place. I really wanted to keep it simple and easy to read. The truth should never be a rose among thorns. It is better presented as a flower in a bud vase.

Andrew - Sex sells. We educate, translate, negotiate and sometimes pontificate. If we slow down, smile, and just tell the truth, we can toss the tidy box and open the door to all possibilities.

Straight forward and to the point. Well done, J Mac! Too many folks with 500 credit scores were able to buy homes in the past and all of their friends and family still think they can today - people need to realize that we are shifting back to a NORMAL lending market where you actually have to be able to make your payments! Gee...what a concept.

Interesting point about the 10% down. I am still seeing quite a bit of 100% financing, but I am on the selling side, so I don't really pay attention to the rate. Could be good; could be bad.

Lisa - Reality is only a slap in the face for some. Others sit back, out of what they fear is harms way. A normal market is chock full of qualified people. The proof is in the pudding. Well, for me the proof is in the gumbo but that is another story.

Kevin - Even on your side of the table, you have to be aware of how strong that 100% might be. Then again, your market is another world away.

I nearly choked on a green bean the other night at dinner when a NAR commercial aired touting RE as the best investment people can make in their lives. I don't remember the exact numbers they used as ROI but it was foolish.

That "collective asses" line you used in this blog should be a tag! Loved it.

John - good point - and I always call the lender, not that it really does anymore that make me feel a little better. Knock on wood, they have all closed. So far.