What to tell a buyer when they say "i should wait to buy"

Debbie-I tell my buyers that they are recieving a $7500 Tax Credit for purchasing NOW, the best fixed interest rates in history, the bottom market prices. I also ask directly, what would it take for you to purchase now? I think saying "we will wait" means a lot more than the simple answer. You need to dig deep into those answers. Sit down up front and ask them what is their timeline and what is it based on? They need more urgency instilled in them. They also haven't seen a home they love yet to spur enough motivation. Are your clients working with your finance person to assist you in motivating and creating urgency? Just a few friendly suggestions, although I am sure you may be already doing some of these things.

FYI-This is coming from a mortgage finance gal who does work weekends! Great job Debbie!

I try to explain to them that interest rates are stillnear historical lows and that money is still available for qualified buyers. I also try to explain to them that if they wait too late for the market to turn, they will again be competing with other buyers for that perfect home that they have fallen in love with. Now is the time to negotiate a great deal when the buyer is in the drivers seat.

If the reason your buyers want to wait is because they are worried prices will continue to drop I would let them know that as home prices drop...interest rates tend to go up. A 1% increase in interest rates will negate a 10% drop in home prices.

It's all relative...

In my opinion, it's always the right time if they need a place to live and plan on staying for at least seven years. Unfortunately, too many people look at real estate as an investment rather than as a home and a place to store their junk and raise their families. They look at the value of their home and think they've lost money. It's all paper, folks! You paid $20,000 for a $200,000 home that is now worth $180,000. You have lost absolutely no money!

My grandparents lived in their home for 67 years, I think it was, and my mom's been in her home for 34 years. My generation and those behind me don't seem to do that. I've had to move a couple of times with my husband, but otherwise I tend to stay put, whereas my friends are in and out every two years or so.

I feel sorry for people losing their homes in foreclosure, but in many cases they haven't lost a penny. The bank has. They got 105% financing with no down payment, so all they did was pay $2,000 a month to rent the house for a couple of years. Well, they would have done the same if they had rented instead of buying a house with nothing down, 105% financing, and an ARM.

If someone tells me they want to wait to buy, I ask what their reason is.  If they need to get their credit in order and pay off debts, then they should wait. Interest rates are great right now and there is plenty of great inventory.  It really is a great time to buy.