I AM IN NO RUSH

By
Real Estate Agent with EXIT Realty- Massachusetts Short Sales & Residential Sales

Just got off the phone with a home buyer.  Its a lower end, low money down first time home buyer, limited funds, limited options.  But it is totally doable. That's fine, I love first time home buyers.  The buyer expressed the desire for a home for his growing family.  There really was't anything he was interested in and he finished the conversation with:

I am in no rush,  I will wait for the right home.  I don't care if it takes two years.

So what you are really telling me Mr HomeBuyer:

  1. I am not a serious buyer.
  2. I have no idea what I am talking about and am in serious need of professional help (REALTOR that is not a psychologist!) But you need to realize you need help before one can help you.

Mr Home Buyer here is the grim reality.  You do care if it takes two years, you desperately care!

You wait for the right home and your dream of home ownership will dwindle away until you can afford nothing.

This is currently what is happenning in most market across the country.

  1. Home prices are appreciating, so conservatively every year that goes buy you are losing 3% of your buying power.
  2. Realistically, mortgage interest rates are still at a historic low.  They can not go down, they can only go up from here.  As the economy improves interest rates will rise... its a fact.

Let me lay that out.  For every 1/8 of a point mortgage rates go up you add $8 to your payment or you lose $1500 in buying power.  So an 1/8 of a point in interest rate rise on a 300,000 just caused you to 1.5% in buying power.

So an 1/8 of a point not a big deal but did you know interest rate rose approxiamately 1 percentage point in about a month this spring?

That translates into either an extra $64 a month in mortgage payment or a loss of $12,000 in buying power, over 10 %of your purchasing power.

So Mr Buyer,  what makes you think if you can't find a condo for $100,000 that works for you now, that you are going to find something for $100,000 next year when you lost $15,000 in buying power or worse yet $20,000?

Here is my advice to you if you are committed to buy. 

  1. Revaluate your commitment to buy.  Is it truly the right time and circumstances?
  2. Put a plan in place.  What I tell buyers if they are truly committed to buying a home, is we will have you in a home in 3 to five months.  And for most buyers that holds true.
  3. If you have looked at 15-25 homes and nothing works.... it probably doesnt exist.  It is time to revaluate your expectations.
  4. Find a buyers agent who can help you with your expectations, manage reality and find the best home you can afford!

______________________________________________________________________________________

Kevin Vitali has been working with many happy home buyers for over 12 years and can bring the experience of 100's of closing to your transaction.  Kevin is a Buyer's Agent that covers most of Essex County and Morthern Middlesex County in Massachusetts. 

Kevin Vitali - EXIT Group One Real Estate

978-360-0422

 

 

 

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Rainmaker
671,942
Kathy Stoltman
Rockwood Realty - Ventura, CA
Ventura County Real Estate Consultant 805-746-1793

Kevin, when I hear those words from a buyer, it translates into "I am not buying".  Love your response.

Nov 09, 2013 01:13 AM #1
Rainer
296,591
Clay R. Seay
Florida Homes Realty & Mortgage - Saint Augustine, FL

Kevin, yes, un-motivated Buyers are not really Buyers, they are Lookers at best. They will Look and Look but not SEE the opportunity when it arises. Great financial points about the future value of money and inflation impacts on buying power.

Nov 09, 2013 01:36 AM #2
Rainmaker
178,681
Kevin Vitali
EXIT Realty- Massachusetts Short Sales & Residential Sales - Tewksbury, MA
Helping Massachusetts Home Buyers and Home Sellers

Kathy yes propably not a motivated buyer.

Clay-  Here in Massachusetts most real estate market indicates a shrinking dollar ahead for home buyers.  Those who can't make a move may find themselves left behind.

Nov 09, 2013 03:01 AM #3
Anonymous
Bob Gordon

How do we soften our response to these buyers so that we assist them without scarying them away? I know it is frustrating. I agree - interest rates are going to surge, possibly Monday because of all the good economic data this weekend. And our market, Boulder/Denver is on fire. Case Shilling Index shows us way up. The vibe on the street - low to no inventory, values climbing daily.  How do we convey this to the buyer that honestly doesn't understand the market without coming off negatively?

Nov 09, 2013 03:23 AM #4
Rainmaker
178,681
Kevin Vitali
EXIT Realty- Massachusetts Short Sales & Residential Sales - Tewksbury, MA
Helping Massachusetts Home Buyers and Home Sellers

Bob- Market data....

Unfortunately, this is the buyer who has chosen not to work with an agent and will flounder indefinitely.  I have worked with many of these buyers who have eventually come to me through referrals from past clients or other real estate professionals.  They flounder they get frustrated.

I pull them into the office, have a frank discussion, show them market data and sometimes I also like to show solds in their price range so they can get an idea of what has sold.   Heres a perfect example.... this happenned this summer.   Client was so adamant about wanting a minimum one acre in two specific communities.  Showed them a years worth of solds in the two communities in their price range.  Not one home even came close to one acre.   Most were down in the 10-12,000 sq foot range.   Showed them the details and asked them if they thought that a minimum one acre lot size was realistic and would help them acheive their housing goals.

This can work but you can't do it in a quickly appreciating market, because the sold houses will look better then whats out there.

I will be honest with you, how soft do you need to be?  I am a very to the point person. I do talk to my clients in this way.  In the end my honesty will help them achieve their goals in timely manner.  Many will appreciate it, if it is delivered in a manner that projects honesty and a true caring of their best interest.  Some won't and those are the ones that only want to hear what they want to hear and will run you around for ever.

I have learned several things over the years.  If you can provide data before a client actually needs it and you can provide it in written form it is far more believable to the buyer.  If they are in the thick of it they wont believe it.  A pre buyer consultation can help set a lot of expectations.

Nov 09, 2013 04:03 AM #5
Ambassador
1,584,261
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

Sometimes we hear those words from sellers too.  Translates to my motivation is so low it cannot be measured.  :)

Nov 09, 2013 07:06 AM #6
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Rainmaker
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Kevin Vitali

Helping Massachusetts Home Buyers and Home Sellers
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