Real Estate Agent with Pacific Coast Real Estate Group

I understand that people are very scared about the financial future of our country and many more are also fearful of their own job security. Just by watching some TV in the evening, reading any newspaper or going on line to read the news can make you very nervous.

Nevertheless, not everybody is having a hard time. Many lucky people have secured jobs and have many opportunities where they work, for advancing to better positions and higher salary.

Many potential First time Buyers on this lucky path are waiting to buy. What is their explanation? I have asked a few clients in this position, and their reply is almost the same; either expecting prices to go down further or finding a steal. Some of these Buyers have a family or are starting one, and their long term plans are to purchase a home where they can raise their families. They don't want to rent any more.

I am sure they have heard this explanation from their Realtors or from friends or relatives. If you are planning to stay in your new home for a few years, you should let go of your fears or trying to find a  steal. Finding the super buy can take time. You can do that later. Life is long and full of surprises.

Lets assume that you really like a home you found that is priced at $ 500,000. You have been pre-qualified for a 96.5% FHA loan. You can afford to make the monthly payments and still have enough money to take care of all your other regular and some not so regular expenses. You have a fairly secure job, have good credit and make enough money to be approved for the loan. Your explanation for waiting is that you believe that homes are going to be going down further. Maybe in your mind you are sure that this home that you like might be reduced $ 50,000 and you will be able to buy it for $ 450,000 instead of $ 500,000. Let me tell you, $ 50,000 is a huge price reduction in this price range; especially since Sellers are pricing their homes at their lowest levels because they are competing with foreclosures and short sales.

The variables in betting on the future are many and if you need a home you should rely on the present. Interest rates might be going up, the home that you really like might get sold, prices might level off and start going up, and many other scenarios.  Is it really worth playing Russian Roulette with your future for the minimal savings per month?  After all, you are planning to keep your new home for a few years.

The market has never been better. Surplus inventories. Low, low prices. Incredible low interest rates. What are you waiting for?




Comments (4)

Gerry Khatchikian
Red Lodge, MT


Nice post.  I wish more buyers (including first time buyers) decide to get off the fence they are sitting on and act on the message conveyed in this post.

Gerry's AR signature

Mar 02, 2009 03:53 PM
Isaac Bensussen
Pacific Coast Real Estate Group - La Jolla, CA

Thanks Gerry. At least 5 of my posts deal with trying to get Buyers to move when everything points to their benefit. Interest rates, prices and now Tax Benefits. In California, besides of the regular $8000 tax break there is a new $ 10,000 State tax benefit if you buy a new home. So, if a Buyer in California decides to buy a new home they can have an $ 18,000 tax benefit. I believe the $ 10,000 California tax break you don't even have to be a first time Buyer.  


Mar 03, 2009 02:22 AM
Dawn Isenhower
Sibcy Cline Realtors - Milford, OH

I wrote a similar post a few months ago, but it did not drive the point home the way that yours does. Thank you for the great post. I think people are missing out on wonderful opportunities while they search for "the bottom."

Mar 14, 2009 04:30 AM
Isaac Bensussen
Pacific Coast Real Estate Group - La Jolla, CA

Hi Dawn

A lot of the few blogs that I am able to write deal with the fact that it is always a good time to buy when prices are low and interest rates are also very low. I am not even taking into consideration the fact that there is a lot to choose. Thanks


Mar 16, 2009 12:13 PM