Attention Home Buyers: It seems like all the home buyers I have dealt with lately are talking out of both sides of their mouth. They say, "Yes we want to buy" but when we find a home meeting their criteria They cannot do it. The reluctance is due to: A.) Scared of the ecomony and/or B.) Have a house to sell and are not willing to take a loss on the Selling end but DO expect a DEAL on the buying end or C.) Want to "WAIT AND SEE" if rates drop or a better house comes on the market. I do not understand this thinking....IT IS A BUYERS MARKET!!! WHAT ARE YOU WAITING FOR???
I have come to the conclusion that this thought pattern really isn't their fault. I blame it on negative press and it is my job as a Top agent to help buyers understand what is happening and why they feel this way.
So, here goes. First let's address A. Scared of the ecomony. Rightfully so. If your job is unstable, I would consider not buying right now. So, stop looking at houses, save for your downpayment and when the time is right, you will be MORE prepared that you are today. I think back to when I bought my first home. (1986) The interest rate on my first home was 16.75%. I was 26, a newlywed and expecting a baby. We had to put 5%-10% down. My husband was in an appointed position and could loose his job without notice. The situation 20 years ago is not so different than today. However, interest rates are much lower now but the cost of living is higher too. We took a risk back in 1985 and lived in our home for 19 years. We were lucky enough to stay in our home long enough that the equity allowed us to buy a larger home and still keep our payments within a reasonable level.
Which brings me to B.) The buyer has a house to sell and are not willing to take a loss on the Selling end but DO expect a DEAL on the buying end. Here is a hard dose of reality. That's not going to happen BUT the good news is you will be better off today then I was when I bought and sold in 2005. It was a SELLERS MARKET just a couple of years ago. If you are planning to sell and buy a more expensive home you will most likely be ahead!! For example: Your home is on the market for $100,000 and you take 10% loss and sell for 90,000. Your loss is: $10,000. BUT, you buy a $200,000 house for $180,000 or a 10% reduction you save: $20,000. All of your friends who paid premium prices in 2000-2006 are now seeing home values drop. But Real Estate is a long term investment. If you are a seller and NOT buying a larger home but want something smaller wait until the market works to your advantage. Because this Buyer Trend will end.
C.) Want to "WAIT AND SEE" if rates drop or a better house comes on the market. These are the buyers that drive me crazy. ARE YOU KINDING ME??? IF YOU FIND WHAT YOU WANT, BUY IT FOR CRYING OUT LOUD. HERE'S WHY. Everyone knows we are in a Buyers Market so home prices are at a low point. Some buyers have told me thank you for opening my eyes because 6 months ago, they could not afford the house they bought. BUT no one will know when it will end. AND it will and it's coming!!! No one knows when. So, I ask you. What are you waiting for? That lower rate may not come and the better house you thought you wanted is now out of your price range.
Once the market begins to show signs of recovery the home prices will start going back up and so will interest rates. So, I say to buyers who can buy and are ready, willing and able. Get off the fence, find an agent that knows your market and buy now.
One more comment: IF you need help finding an agent, it would be my pleasure to assist in that process. Who better to find a good agent but another agent!!! It's just one of my services I offer to anyone in any state. I can find you an agent you will be happy with. CALL ME: Becky Burghart 785) 640-8811 or email me for help. becky@beckyburghart.com and if you are looking in the Topeka KS area we are the 6th MOST Afforable housing in the National, check out my website: www.beckyburghart.com
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