Attention Buyers...Motivations and Myths (Part 1 of 2)

By
Real Estate Agent with Keller Williams Realty

 This portion provides you 3 common myths buyers have in a buyers market. I would like to provide what I call the Top 13 Reasons people are motivated to buy a home. I also provide you with 3 common myths buyers have in a buyers market. Motivations Top 13 Reasons People are motivated to buy a Home

1. Relocation – A buyer might be relocating, due to work or other changes

2. Dissatisfaction – The neighborhood has changed “for the worse,” living with in-laws or other family, too far from schools or work, in run down or high-rent properties

3. Positive life changes – marriage, baby, promotion

4. Negative life changes – death in the family, divorce

5. New job or promotion – relocating, moving up or moving closer to the job

6. Lost job or income – buyer has to sell their current home and downsize

7. Second Home – for retirement or vacation

8. Retirement – need to sell current home and downsize

9. Previous home sold – highly motivated to have stable shelter for family

10. Inheritance or new money (lottery, stocks, etc) – first home, move up buyer

11. Lease ending – may be ready to own home, build equity and future nest egg

12. Investment – looking for additional income stream and/or tax write-offs

13. Move up buyers – ready to move to a better home, closer to work, better school or district

Myths

Most Home Buyers (or even potential buyers) must wrestle with 3 key myths:

Myth 1 – “I can take my time, because I have ALL of these choices of homes on the market.”

Reality – The truth is buyers do not have time to wait and decide on the best properties, because demand for the best properties is always high and the best properties sell fast and sell at or close to full market value in every market.

Result – Buyers who wait will end up with second tier (2nd, 3rd best on list, etc.) homes.

Myth 2 – “Prices or Interest Rates may go down even further”

Reality – Increases in interest rates can and do negate decreases in purchase price. On the other hand, rates could drop further, increasing your purchase power.

Result – Your monthly bottom line could either increase or decrease. What is the unknown worth to you?

Myth 3 – “There are no benefits to signing a buyer representation agreement.”

Reality – If you sign an agreement, you are assured of a 100% commitment from the agent. I am not only your Realtor and Consultant, but your Ambassador, your advocate.

Result – You have someone else looking for and after you and your family’s best interest and with the ability to negotiate on your behalf, a professional, fiduciary relationship of genuine trust with someone (not just an order taker or chauffer) and another set of eyes scanning the inventory based on your needs and wants.

Stephen Adams is a Realtor and Consultant with Keller Williams Realty in Leesburg. He is a member of the Loudoun Chamber of Commerce His web-site is www.NewPhaseRealty.com “Guiding Your New Phase of Living” E-mail address Stephen@NewPhaseRealty.com Office address – 50 Catoctin Cir, NE #101, Leesburg, VA 20176 Office phone # 703-669-0099 Direct# 703-608-0090 Fax # 703-669-4104

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Rainer
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Elizabeth Ward Small
REALTOR & CEO The 3B Method Seminars - Burlington, NC

Then there is the myth that you can offer 20% of the listing price and expect a legitimate counter offer! I know in our market, houses are still selling reasonably close to market value.

Jun 19, 2008 06:46 AM #1
Rainer
8,325
Stephen Adams
Keller Williams Realty - Leesburg, VA

Liz, yes, many investors out there looking for "steals", not "deals". Wish I could say the same about our market here in Northern VA.

Jun 19, 2008 04:01 PM #2
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Rainer
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Stephen Adams

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