THERE HAS NEVER BEEN A BETTER TIME TO BUY!

By
Real Estate Agent with REALTY WORLD MID ATLANTIC

All the media 'gloom and doom' hype overlooks the obvious. While the market is not the strong seller's market that we have experienced over the past 5 years, it is a GREAT MARKET FOR BUYERS! Consider the following:

 

  • Interest Rates are about where they were in 2000 when the boom began - 30 year lows at that point
  • Builders have excess inventory locally and in most other markets which leads to their offering tremendous incentives
  • Excess inventory in New Construction means existing sales are taking longer, making sellers more open to negotiation
  • The Flippers are gone
  • Flippers who got caught with inventory are extremely motivated. 

 

Then there is the so-called mortgage meltdown in subprime that has earned its own logo on CNN. Consider the following for buyer with less than perfect credit:

  • More inventory means more rentals. A good REALTOR(R) can negotiate a Lease/Option in many cases
  • Banks, such as Bank of America with its Community Lending program are stepping up to the plate with loans for first- times  that have relaxed underwriting standards
  •  
  • FHA is moving to fill the sub prime void 
  •  
  • Sellers will be more willing to carry a second trust to get their home sold
The bottom line is that buyers need a highly skilled professional now, more than ever. REALTORS(r) who have been 'order takers' for the past few years are going to have to sharpen their negotiation skills or find another line of work. Buyers could end up leaving money on the table without strong representation who can think outside the financial box.

Comments (5)

Bob Force (REALTORĀ®)
Weichert Realtors - Aspen Hill - Mount Airy, MD
The FORCE in Maryland Real Estate
Gregg:
I agree with every thing you said.  I have been working with a Customer Builder who just yesterday had me put two of his homes on the market for rent as well as for sale, two big homes in Rockville.
Apr 19, 2007 05:32 AM
Tchaka Owen
Galleria International Realty - Hollywood, FL

Well, that's a very large statement.  I could easily argue that there have been better times to buy.  Keep in mind that real estate is local.

- Tchaka 

Apr 22, 2007 08:07 PM
Endea Thibodeaux
Tarver Realty Group - Washington, DC
CLHMS, RECS
Best Buyers Market in 7 years was my recent blog.  This is really an apathetic market do to media ranting and ravings.
Apr 29, 2007 01:56 PM
Ellen Crawford
Maximum One Executive REALTORSĀ® - Alpharetta, GA
Alpharetta Real Estate Agents & Alpharetta REALTOR
I agree fully!  The rates are great!
Apr 30, 2007 05:17 AM
FRANK LL0SA Esq.- Northern Virginia Broker .:. FranklyRealty.com
Northern Virginia Homes - FRANKLY REAL ESTATE Inc - Arlington, VA

I disagree. I don't ever think it is the job of a Realtor to say that "Now is the time to buy."

What are you going to tell a client if they bought a place and suddenly lose $50,000 because the market keeps heading downward. Sure you can say "wait it out," or "so sorry, you never know."

I instead like to say: "Buyer's Market?" Still, No Such Thing As a "Good Deal"

Frank 

 

May 16, 2007 06:27 AM