1) The Media
The media focus is politically charged as we approach the November elections. The media focus has been on the fact that the economy has rebounded yet. The television news, interviews, political ads and commentary are confusing for buyers. The fact is that today’s economic conditions are offering buyers interest rates around 4% for a 30 year fixed rate mortgage. That buying power is huge for today’s homebuyers.
2) Waiting for the Market to Hit Bottom
Talk about a double-dip recession has scared some homebuyers that they might purchase a home today and it will go down in value. Real estate is local so having information on the local market will give buyers the information they need to know. If buyers wait for major media to tell them that the US housing market is rebounding, they will miss the bottom by 6 months. Housing market data is usually reported by quarter and the release of that information takes a few weeks after the quarter has ended.
3) Waiting for a Good Deal
“Deal” is a nasty 4-letter word. But homebuyers think in a buyer’s market they are supposed to get a good deal. Is a good deal getting the lowest price per square foot in the neighborhood? Or is it getting a 5 year old house with new stainless steel appliances, custom blinds and window treatments and a fenced backyard at $20,000 below what the seller has put into the house? Buyers generally do not want to do any work to the house so a good deal to buyers right now is move-in condition and upgrades. Buyers want granite countertops, hardwood floors and no wallpaper or custom paint. Buyers tell me they want be able to move in, make their mortgage payment and live their lives without having any huge projects or expenses ahead of them. They have to go to work to pay for the mortgage and that takes up plenty of their time.
Coming up - Reasons 4-6 Why Home Buyers Are Sitting on the Fence
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