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Andrew Malik, Real Estate Pro in Cherry HIll, NJ

Do you think more people will choose to rent or purchase in 2013?

Asked by Andrew Malik, Cherry HIll, NJ Tue Feb 5, 2013

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Thanks to home prices still being attractive and low interest rates buyer confidence is back and more people are feeling good about buying a home again. I think & hope it will continue to be a very good year for home sales. There will still be a need for rentals , especially with so many displaced families from the hurricane , and distressed sellers .coming out of short sales.
0 votes Thank Flag Link Wed Feb 6, 2013
With proper education of financial options, this question can be a positive one. There are so many programs out there to help people buy homes, regardless of their credit: Private money, NACA, Lease Buy Back Options, FHA, Owner Financing (as Bill Eckler mentioned).

One of the problems I see is that Loan Officers (LO) are being hired to take loan applications and their knowledge of underwriting guidelines is less than par. The last company I worked for, the loan officers would come to me asking me about FHA guidelines. As many times as I told them to look it up, they'd still come back asking the same questions. It amazed me how many buyer's they turned down because they didn't know how to think outside the box. They are the people that need to be educated in order to educate buyer's.

Taking it a step further, the loan officer is trying to survive after having his/her income slashed by 75% or more and with the refinance still booming, many don't have time to study guidelines (poor excuse). That same company that I used to work for refused to let me read the lender guidelines telling me I didn't need to know that information. All I needed to know was the rate and the customer information.

This is probably the reason why buyer's get near the closing date and the loan falls apart. Some LO's are too afraid to call the Realtor and the buyer and say that they screwed up. It only takes one time for a buyer to lose the house before a hundred people know about it.

Imagine if that loan officer had studied the guidelines and coached the buyer how to better themselves to buy that house. Then perhaps, your questions would be, "How many more houses will be bought over those rented?"
0 votes Thank Flag Link Tue Feb 5, 2013
Andrew,

I think it can depend on where you are located. Right now our market is hot and we are seeing an increase in home sales. We don't have that many rental properties in town and if and when they come on the market, they do rent pretty quickly but the majority of people looking to move into Fairfield are looking to buy. With that being said, I've definitely seen a rise in people looking to rent with option to buy, not really in Fairfield, but in other areas.
0 votes Thank Flag Link Tue Feb 5, 2013
I don't think many first time home buyers have a choice. It's been very tough out there here in the SF Bay area, low inventory, low interest rates, and all time high rentals.
0 votes Thank Flag Link Tue Feb 5, 2013
Very interesting question.....

IMO, there are so many people that have had their credit "destroyed" by hard times that rental numbers will continue to increase. Just look at the postings on this site. So many people are seeking alternative means of buying....owner financing, lease options, etc. Also view the number of posts in which people are questioning whether or not they can qualify to rent because of their credit, foreclosure, short sale, eviction, etc.

Don't get me wrong....the market will continue to strengthen and buyers that have been waiting for better times WILL finally purchase but there will still be a lot of formerly good risk people that will have to wait for their personal recovery to happen.

It's a darn shame....

Bill
0 votes Thank Flag Link Tue Feb 5, 2013
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