John and Vivianne
Bill wrote: "....and there was a confidence our government was making wise decision"
The public perception and reality often travel different routes.
There was a greater confidence when folks were spending like crazy people. By the way, the correction we are experiencing today was not result of WISDOM FROM OUR LEADERS but from natural, although brutal, market correction. The wisdom of our leaders allowed Bank of America to corrupt Moody's. And very little has changed since.
As we all know, the public is swayed easily through fear and doom & gloom messages. There seems to be an insatiable appetite for such toxic consumption. However, each and every one of us can choose to be servants of such sources or decide to invest the time, energy and intellectual resources to give the rest of the story. Not propagate the story but give the report on what is happening where you are located.
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I have had a couple clients wait on some homes thinking they could wait a few weeks or months to see if price reduction would take place, only to see the listing go under contract quickly. I guess with the talk that the the bottom has not yet come and belief that interest rates will get even lower seem
Sometime the best lessons are learned the hard way.
JOAN LORBERBAUM MOORE
Broker Associate, GRI
9858 Clint Moore Road
Boca Raton, FL 33496
In Los Angeles, no..I have buyers. I just don't have enough homes on the market besides short-sales to look at.That's my main problem. I do think the sellers are waiting out the market for better times in order to sell for a higher price.
I find it interesting - almost hilarious - that you wrote that during the *boom* years people felt confident that government was making *wise* decisions ...... when quite the opposite is true. The reason the entire country went through the HORRIFIC housing industry crash is BECAUSE the government was making the WRONG decisions during those years: de-regulating the lending industry, allowing the subprime loans, packaging the good and the bed loans and selling to the investors.... the list goes on.
The point is that NOW is a GOOD market because finally we are getting back to the NORMAL, to what it should be IF the government did NOT make so many WRONG decisions.
It is a case by case basis, however, once my buyers are commited to finding a home, there is nothing to stop them. Usually after the first time seeing homes, they get the fever and aggressively start moving towards closing on a home.
Without a doubt, some are still waiting but waiting for different reasons. When availability, price, and interest rates are optimal it would be fair to assume that there could be something else that is causing the road block......
Six or seven years ago when people were purchasing property almost "blindly" at inflated prices it was a different time....people were working, the economy was strong and there was a confidence our government was making wise decisions....it's probably best to not overlook these factors when trying to get a grasp on the theory of "fence sitting."
In other areas, you have those who have listened to the real wealth builders and are taking action. Some who want to act but are so underfunded they can't get into the game where they need to be. Then you have the home buyer, the one you are speaking of, looking for GUARANTEES!
These risk adverse buyers will drive you crazy. They make low ball offers and fret that they will lose the money they paid for an inspection. They have a tendency to create their own crisis.
For many waiting buyers it is crucially important to understand why they are buying. I find they are easily moved off the fence when you can show them safety nets in the case they hit a speed bump or two in the coming years. Those who are risk adverse are seeking assurance. Find their value center and build the assurance they need. The two assurances most easily created are:
1. Instant equity
2. P&I alternative payment options. (self financed)
Those seeking guarantees need to incubate a while longer and perhaps will buy when the see prices rolling skyward again.
Best of success in 2012
ReMax Realtec Group
Palm Harbor, FL
727. 420. 4041
Once the glut of foreclosures gets filtered through, supply and demand should be in better balance and we can begins to see small gains in the market. We are seeing this already in some locations.
It is my own feeling that loans will be hard to get as long as interest rates remain low. What incentive is there to loan money like it is now? A few years ago, you could get a mortgage as long as you had a pulse, and we all know where that led us. Now the pendulum has swung too far in the other direction. But it will return.
I do two things to help buyers make a good decision. First, I show how it's cheaper to buy than rent (if it applies and very often it does). And second, we look for homes to do 203k renovations on. That way they get a discount on a home and have it completely renovated. That is exciting and helps them move forward.