Why are you still on the fence?

By
Real Estate Agent with Realty Pros & Assoc.

Still on the fence?  Time to get off it!  Now is the time to buy!  Not in the past 20 years has housing affordability been better than it is now.  The combination of historically low interest rates, a large inventory of homes to choose from and affordable home prices makes this the market to jump in to.

As it currently stands, prices for homes and rates are still low, and are only expected to rise. Those of you that have been waiting will already be paying more.  Effective April 18, for those planning to use FHA financing to buy a home, Annual Insurance Premiums have increased by .25%. That means a loan at $250,000 just increased by $52.08 per month.  Couple that with the fact that we are indeed seeing pricing increases in many areas, many buyers could be paying more than if they hadn't waited as long.

Sellers are motivated.  Many homes have been on the market for months because of current market conditions. Sellers are eager to finally make a sale, and this means they are likely to approach what they may not consider the "perfect" offer with a more favorable attitude. We are seeing more willingness to negotiate price, as well as other aspects of negotiations such as closing date or throwing in a few extras like appliances, certain repairs or contributions toward closing costs.  You're also unlikely to end up in a bidding war that could drive up the price or make you completely lose out on a home that has really caught your eye. However, be cautious, as we are seeing the return of multiple offers - another sign of an upward swing and yet another reason to get moving!

For those interested in a new builder home, take advantage of the perks!  Home builders are competing with the resale market and are offering incentives to potential buyers to reduce their inventory of unsold new homes.  Cash for furniture, free refrigerators, washers, dryers, these are just some of the things we're seeing.

Also keep in mind that the government is even now reviewing down payment lending requirements.  Congress is working on legislation to define rules for a Qualified Residential Mortgage which includes provisions that would require 20% down payments on new loans.  This rule does not apply to Fannie and Freddie loans, however, there has been much talk of doing away with Fannie & Freddie, which currently constitute 90% of the loan market.

Another good sign is the fact that investors are jumping in to the market again with both feet.  Short sales and foreclosures are great deals and rental prices are increasing.

In my area of Volusia County Florida (Daytona Beach, Ormond Beach, Port Orange, Ponce Inlet), where we have been hard hit by short sales and foreclosures, I have recently had several of my buyers lose out on properties they had an interest in because they waited too long to make a move.  Multiple offers are cropping up and sellers are being extremely receptive to the offers coming in.

So Mr. & Ms. Buyer - time to come off the fence now!

Comments (12)

Jason Frey
PureWest, Inc. - Livingston, MT

Caryn - great post.  Now, if we could broadcast this across all the popular media channels..... 
Hope all is well in sunny Florida.

All best,
Jason Frey

May 25, 2011 09:28 AM
Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

Great post you are right now is the time to buy awesome rates and plenty of inventory to choose from.

May 25, 2011 09:38 AM
Caryn Baker
Realty Pros & Assoc. - Ormond Beach, FL

Jason - you're not kidding.  So much gloom & doom in the news.  Unfortunatley, they don't seem to perpetuate the type of news they should.

Pat - thanks so much fellow Floridian!

May 25, 2011 09:46 AM
Sarasota & Manatee Counties FL
SaraMana Properties - QuickFreeMLS.com - Bradenton, FL
QuickFreeMLS.com - Listings In Paradise

Why am I on the fence? Because the post is stuck in my . . . ;-)

May 25, 2011 10:55 AM
Barbara Altieri
Better Homes and Gardens RE Shore and Country Properties - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

Caryn -- Welcome to AR? You will certainly learn a LOT here and enjoy many benefits.  You're absolutely right in your post. If the buyer has the money, then this is quite an opportunity to buy.  Low prices, low interest rates and good inventory....many will look back at this time and be sorry they didn't act.  BTW, how is Broadwater doing?  I own property there.

May 26, 2011 04:26 AM
Caryn Baker
Realty Pros & Assoc. - Ormond Beach, FL

John - too funny!  I'm betting a lot of people have been on the fence so long they're "stuck" too!

May 26, 2011 04:33 AM
Caryn Baker
Realty Pros & Assoc. - Ormond Beach, FL

Barbara - thanks so much. I'm definately enjoying AR, it's a great resource.  Broadwater is a great area, not a lot of turnover. Last sold was a REO in 9/2010. Currently 3 SF actives, 1 being a SS. 1 active lot at 1 Broadriver for $315k. Last sold lot @ 2 Broadriver (REO) for $189.9k, 8/2010. Are you planning on keeping your lot & building here for your retirement?

May 26, 2011 04:46 AM
Barbara Altieri
Better Homes and Gardens RE Shore and Country Properties - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

Caryn -- Thanks for the info! Maybe we can talk offline at some point. I am thinking of doing an exchange so I don't get killed on capital gains. I LOVE it there, but don't think I want to build a huge house at this point. I own a beautiful, flat 1 acre lot on Broadriver. Maybe something down by or on the beach would be better for us.

May 26, 2011 05:00 AM
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Caryn, very good post. I also can't understand what Buyers are waiting for these days. It's time to buy!

May 28, 2011 10:09 AM
Caryn Baker
Realty Pros & Assoc. - Ormond Beach, FL

Hi Connie - well that makes two of us!  Hopefully reality will start to sink in soon & the buying will begin!

May 31, 2011 05:38 AM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

They are saying that if the government changes the down payment requirements for loans that it would cut about 3/4 of today's qualified buyers out of the market. Don't be one of the ones left renting because of another persons decision about if you can qualify to buy a home.

May 31, 2011 07:22 PM
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

I'm pleased to say I've had several of my confirmed "fence sitters" hop off and write offers during the past couple weeks.  Good sign buyer confidence is on the rise.

Jul 05, 2011 04:11 PM