All the media 'gloom and doom' hype overlooks the obvious. While the market is not the strong seller's market that we have experienced over the past 5 years, it is a GREAT MARKET FOR BUYERS! Consider the following:
- Interest Rates are about where they were in 2000 when the boom began - 30 year lows at that point
- Builders have excess inventory locally and in most other markets which leads to their offering tremendous incentives
- Excess inventory in New Construction means existing sales are taking longer, making sellers more open to negotiation
- The Flippers are gone
- Flippers who got caught with inventory are extremely motivated.
Then there is the so-called mortgage meltdown in subprime that has earned its own logo on CNN. Consider the following for buyer with less than perfect credit:
- More inventory means more rentals. A good REALTOR(R) can negotiate a Lease/Option in many cases
- Banks, such as Bank of America with its Community Lending program are stepping up to the plate with loans for first- times that have relaxed underwriting standards
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- FHA is moving to fill the sub prime void
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- Sellers will be more willing to carry a second trust to get their home sold
The bottom line is that buyers need a highly skilled professional now, more than ever. REALTORS(r) who have been 'order takers' for the past few years are going to have to sharpen their negotiation skills or find another line of work. Buyers could end up leaving money on the table without strong representation who can think outside the financial box.
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