Please help me; I seem to be a bit confused
and frustrated. Whatâ€™s the problem Tim? Well Doc; Iâ€™ve been selling real estate
since 1984 when mortgage interest rates were at 12% and buyers were buying homes
even though it was costing them a ridiculous amount of money just to borrow
$100,000 or $1,028 per month to be exact. Today a buyer can borrow $228,000 at
3.5% with the same monthly payment compared to borrowing $100,000 at 12%, thatâ€™s
an increase in their purchasing power by $128,000. Ok so whatâ€™s your point Tim?
My point Doc is this, weâ€™ve had the largest down-turn in real estate values ever
combined with the lowest interest rates ever and buyers still appear to be very
comfortable just sitting on the fence, why? Itâ€™s the fear factor Tim, and what
fear factor are you referring to Doc? The fear factor is this; buyers are afraid
if they buy a home today thereâ€™s a very good chance it will be worth far less
than a year from now and that has a psychological effect on their decision
making. So the buyers fear factor is actually mind set related? Yes, thatâ€™s
exactly right Tim. Ok Doc in your opinion what do you think it will take to
change the buyerâ€™s frame of mind or mind set thus removing the fear factor from
the equation in their decision to purchase a home? Positive reinforcement from
the powers that be would be a good start. Can you elaborate? Certainly, what I
mean is this; for years now buyers have been overwhelmed with negative
reinforcement coming from all different sources; the media, economists,
financial institutions, population in general and yes even the real estate
community that home values are heading south deep into the abyss never to
return. This is a big reason why buyers are reluctant to get off the fence.
So whatâ€™s the solution Doc? The solution is simple;
itâ€™s all about the real estate community providing the knowledge needed, the
positive reinforcement warranted and the resolve to move onward so that buyerâ€™s
once again will see the vision, fulfill the dreams and understand the value
proposition that home ownership in America is and always will be one of the
safest and rewarding long term investments an individual or family can make.
Remember there is no better time to buy a home than right now, the affordability
factor has never been better. Itâ€™s time for you to invest and, â€œOwn a Piece of
Happy House Hunting!