There is a lot of talk this weekend on a national level of the possibilites of a rate cut by the Fed on Tuesday. There is also a lot of talk of Government intervention into this whole sub-prime lending mess. As a Real Estate Agent and business owner in Shreveport Louisiana I have some mixed emotions about both. First and foremost, I belive that a correction in the market is good for the strong Realtor and for the wise investor. I am not in favor of a rate cut! A few years ago, money was hard to find, but deals were easy to find, so a wise real estate investor could make some serious money. Secondly, is it really good for America for people that have no business buying homes getting into special progams that promote home ownership? What are people learning when they own rather than rent a home? What we are seeing is that they are learning they made a giant mistake!!! Landlords serve a great service...when things go wrong they are there to repair them. The sub-prime market...people buying homes that do not have the credit or history that proves wise money management in my humble opinion shoud go away. My daddy taught me that if it seems too good to be true it probably is...and we do not need the government to intervene with our tax dollars.
As real estate agents we owe it to our community to not sell homes to people that cannot afford to buy them. I am so tired of getting offers where the seller pays the down payment, the closing cost, the prepaids, everything. Why is the buyer buying a home??? I think we as agents, both Real Estate and Mortgage lenders have become focused on our commission, our own greed, and we are doing our clients a dis-service. I have felt no greater joy to meet with a first time home buyer, explain that they need to spend 6 months getting their finances in order and then sell them a home 6 months later. I can also say that I know that unless an unforseen event occurs in that family, they will never have to face losing the house!
In my opinion, we need to focus on the client...not the rates...not the newest programs...not the work-arounds...but really focus on the what is best for the client.