Good Morning,

Last week when I doing a door knocking in my Farm Area the guy approach me
and told me that I always in that area so my response to him is you what that is
good question when I work to this area I know exactly what to tell my client if the
asking some property in this area. I know every ling in this area waht is available
and pending, cancell or off the market. After 3 days there was a listing in the area
and Iam doing a door knocking suddenly he approach me again telling that I want
make an offer on that property... So from then I am working with this buyer..

Hi Dennis,
as RE Pros, we are here to educate our clients, give them as much market information as we possibly can, advise them to get good financial advice and talk to a reputable lender... We should make sure that our
clients our buyers or investors do buy because they always wanted to buy, and they are financially in a solid situation, i.e. can afford the monthly fixed expenses and the ones they may come up (repairs, upgrades etc.)

So given all these facts, the best time to buy for a buyer who can afford to buy is in a buyers market, i.e. when there are more properties on the market than ready and willing and qualified buyers, so that the buyers, not only have a lot to select from, but also can negotiate very good sale prices and terms.....

And I am not sure why you are so .....................not sure what word to use in response to your first initial statement, remember it is OUR money we are using not YOURS......... Do you really think RE pros do not
know that? The statement that it is a good time to buy, if it is the right time for the buyer and given all the above stated facts, then a Realtor is right to say it is a good time to buy for a qualified buyer in a Buyers MARket~! Should everybody try to buy, of course not!

Take care!
Edith Karoline YourRealtor4Life! and your Chicago City and Northern Illinois Expert
International real estate and relocation services too!
Working always in the very BEST interest of her clients....
EdithSellsHomes@gmail.com

Dennis
I just had buyers close on a property yesterday. They were paying 750.00 a month to rent a 2 bed condo. Their payment on their 3 bedroom home is 670.00 a month. They brought 1755.00 to closing to purchase the home. We (the government) are going to be giving them 8000.00 when they file their taxes so they get an increase in their savings acount of 6245.00
For them it was a great time to buy! Everyones circumstances are different so it is hard to give a pat answer but for a lot of people the time is now.

It's a good time to buy because it's a buyers market. With the number of short sales and foreclosures out there and the record low interest rates the time to purchsae a home couldn't be better - if your financially ready for it.

A home purchase is a GIANT step for some people. Don't buy just to buy and don't buy more than you can afford. Only you know your budget (income and expenses). If you don't have a down payment, you're in fear of losing a job or you have poor credit, this may not be the time for you.

If you follow the adage "Buy low, sell high" then you should ask your realtor to produce the reports about a particular property in specific locations.

However, another adage still holds true: "Location, location, location."

Classic example:

LOW PRICE: Detroit, MI's median home sale is $7.500. Now, that's low, especially for a city that used to be one of the largest cities in the U.S.

LOCATION: But is this where you want to invest or live? And if you are into flipping houses, how soon can you get your money's worth?

Even in Detroit, astute investors have to invest more cash into making the homes habitable. Many of them are planning to rent out the properties for a few years, knowing that they won't be able to get their money's worth for a while.

Where I am, in the East Bay of California, the prices have really come down. Even in premier cities like Piedmont, Berkeley, Alameda, we are seeing lower prices --- by as much as 20% from 2-years ago. We are also seeing less than a month's worth of inventory. Why? For these reasons:

1. First time home buyer tax credit
2. Historically low interest rates
3. Lower home prices

Realtors look at our inventory, at our median prices, at the various housing stimulus programs. Although low inventories (like less than 6 months inventory) tend to veer towards a Seller's market, the fact that the prices are much lower than they were before is enough to get buyers to strive to buy...and this time, for the right reasons.

Right now in the East Bay area certain towns and neighborhoods are very active and getting multiple offers. It depends on price range. Under $500K is doing quite well with buyers taking advantage of low interest rates and lower prices. It is still active under $800K but when you get above $1m it is a different story. The activity drops off and properties stay on the market longer. Buyers who can afford to buy and are in the market for a home look at this as a great opportunity. They are buying with caution and are looking at a purchase of a home to live in and enjoy for years to come. They understand that you don't get rich quick in real estate.

If interest rates increase, home values will plunge not increase or stay the same. would you rather purchase a home at a lower price and higher interest rates, or a higher price and lower interest rates? in comparison with high price/low interest rates, the lower price/high interest rate will have reduced property taxes and the ability to refinance at a lower rate is much more likely. Not a good time to buy in my opinion. San Ramon has another 18-24 months of falling prices.

No one will know when prices have hit bottom until prices begin to increase and then the bottom has already passed. We are all effected by declining markets either through income or the value of our own property(s).

The real estate market is changing again, as it does and will continue to do so. I was taught to see it as circular like a clock; not up or down like a ladder. As a matter of fact I teach a workshop called, the right time to buy emphasizing how it is always a good market; it just depends on what is the right time for you. Typically, sellers like to sell when demand is low; they keep more money. Buyers like to buy when there is a lot of inventory and prices are better; they keep more money.


Which brings us back to why someone would rent and not buy the home they are living in. Of course there are reasons for short-term rentals, but I can think of few other legitimate reasons to just renting. Rationalizing that renting is cheaper than purchasing is just that, rational lies. Renters are purchasing, they're just purchasing for someone else. The key is to purchase wisely. As we are approaching one of the largest foreclosure waves in history, I can't think of a better time for creative financing opportunities. It makes me crazy when I hear someone say they can't afford to buy. I say you can't afford not to buy.

Dear Dennis,
Because prices have dropped and interest rates are so low, it is a good time to think about buying Real Estate. Many investors are doing just that. Of course, you will need to hold on to that property for at least 5 years (or until Real Estate stabilizes).

Feel bad that it is a touch time, but no reason to take it out on their clients.
~~~~~~~~~~~~~~~
Nor for you to take it out on the entire Realtor community.

Dennis,

It depends on where you're looking to buy. In the places that have been cratering since 2006 and are down 60% or more, they are probably close to the bottom, but in the other areas we still have a couple years more of price deterioration. In places like Danville, we're going to have massive price detorioration in the nxt year, don't be surprised if you see a 20% or greater drop in Danville, Alamo, WC, Orinda, Lafayette in the next 6-12 months.

Dennis ,
I was in your shoes 22 years ago when I was relocated from Europe to the USA. I was in a situation that I knew very little about the area I was moving to, I did not have credit rating, had problems getting credit cards and while having a very good income, still treated as a pauper by the financial institutions .
We bought a house ,paid 50 % down and 3 years later when I relocated again my company sold it for the same price as I bought it for.
At that time renting was not an option because nothing was available in the area my family wanted to live.
You might have a rental options now .By renting for a year or two you get a chance to know the area better before you buy ,get a credit rating,see how the job works out and how stable the company is. Rentals might be good since many home owners of expensive homes can not find buyers that can get jumbo loans and are willing to rent thehouse out for a while, to avoid having it stand empty.
To judge if the price is right at any time is difficult. We know that a house can be build for $100 -$ 200 per sq.ft.in most places in the USA ,depending on how luxurious it is.
The difficult factor is the land price, which depends on the location.That is why house prices in California are so high, but can also drop fast when demand disappears like at the time when I sold in 1993.
So my advice is : Find a long term good location , like on a lake, golf course ,the ocean, etc, in a good school district, less than 10years old.If you pay a little too much ,don't worry ,it will correct over time as long as you have the tenure in the house.
Real estate is not for day traders!

That's a good point Plano. A realtor's job is to help somebody find a home or sell a home and to handle the details behind the transaction. If you want to buy or sell, in most cases you NEED the services that a realtor provides. The last time I checked, realtors were not barging into peoples apartments demanding that you buy a home.

A similar example. I am in the mortgage business. Now everyone knows that lending guidelines were very lax for a few years there. A lot of people bought houses and took on mortgages they couldnt afford. But banks basically said, if you have a pulse we will lend to you. Now if someone walked into my office and said they wanted to buy X home, I felt it was my job to discuss all the loan options they qualified for and the terms at which they could obtain each loan, then it was up to them to decide if they could afford it and which option was best. Now it never took a genius to find out that a lot of these people were going to wind up in trouble. If $3,000 is coming in each month and $4,000 is going out then something's gotta give. But in my mind these borrowers were approved for a loan, and besides just telling them to think long and hard about it, if I told them they were crazy then they would just go down the street to the next guy who would tell them what the want to hear anyway. My point is that these people had already made up their mind to buy, assuming they could be approved for it. Why would I not want them in good hands?

I think with respect to housing values and the mortgage meltdown, a lot of fingers are pointed at realtors and the lending industry, making it sound like we are all to blame. And homebuyers are played to be victims. I contend that customers have just as much a hand in this as we do. The fact of the matter is that we are service providers. We handle pertinent details and facilitate the closing of transactions. We are not paid to be advisors. It is ultimately the customer's decision how to proceed. Now as far as advice goes, if you ask our opinion we can surely give it to you, but it is not an obligation. Like Plano says, no one is twisting anyone's arm.

Sorry about the rant and I'm not attacking your question Dennis. Just passionate about my business and wanted to get that out :)

If you do not need to sell, then don't. If you are looking to sell and buy - then you may take less on yours and pay less on the next, you may even get bigger and better for less, if that is what you are looking for. Money to invest - a rental may be an option. If you are selling then make sure your property has been prepared for the market (this is far more than de-cluttering & cleaning) and priced properly for your area and in accordance to what others HAVE sold for.
Before you do anything go in and talk to a lender (face to face) and get the facts on what you are qualified to do.

I'm just still confused as to why it's the real estate agents fault that people are out buying homes. We aren't the ones paying your mortgage, you are. So YOU are the ones in the market to buy a home, we are just there to guide you through the process. We are not FORCING you to buy a home, just like car dealerships are not FORCING you to buy their cars but they ALWAYS have advertisements saying "GREAT DEALS! COME BUY NOW!" There are advertisements for casinos telling you to come play at their place for great times! Doesn’t mean you are forced to go and spend money, does it? Everything has their advertisements, it’s not us making you go and buy a home. Advertising for RE is for the responsible consumer. For the people who need a life long home, not just something to flip in a few years. It’s for people who have down payments, money in the bank, stable work, etc. Not for everyone thinking they can get 100% financing, gain equity, and then sell in a year. That’s not a good RE buy.

Most people will believe what they want to believe, no matter what we say.

I tell my clients that you make the decision to buy a home by looking inwards towards their personal circumstances, not outwards at "the market".

If a client has steady income, a down payment saved and is ready to commit to a house and neighborhood for the the next five or ten years then yes, this is the time for them to buy.

For someone who is not financially ready, or is not ready to make the commitment, then no - this is not a good time to buy.

Real estate is a long term investment with high transaction costs, so it doesn't make sense to purchase for the short term. Home prices in most areas will tend to appreciate at a rate greater than the rate of inflation, so over the long term the odds are that owning real estate will turn out to be a good investment.

Even so, for most people, buying a home is just that: buying a roof over their head. The investment aspects are secondary.

Hi Dennis,

Your question brings caution to the wind in my book. As a home buyer, there are many expectations that you should have when it comes to working with a buyer agent and when you choose one, the first thing that should be addressed is exactly what those expectations are; so you are on a level playing field. Sometimes, people don't have chemistry, and that should be reason enough to move on and interview the next until you find a match; kind of like what you do on eHarmony dot com. Now for the nuts and bolts. Duties and obligations are spelled out in the agency disclosure and of those is a duty of honest and utmost care. In order for a Realtor, an agent that is bound by the highest ethical standards, to exercise due diligence, he or she is going to make sure you understand what that means. Furthermore we are going to sit with you and first get you prequalified with a lender to determine a budget. At this point you will have a good faith estimate from the lender and a Buyer Estimated Cost Worksheet and those become the rules. To further enforce that, we are going to work with you to find out if there are in material issues that you might have and put them in writing. By the time you close on a sale, you should be a confident, happy homeowner. Remember, contracts require agreement, so if the financial aspect of the deal doesn't please you, then you are NOT in agreement.

In regard to the market, a broader based topic, there truths and fallacies. It is a truth that we are in a buyer's market in terms of prices, inventory and interest rates. That only becomes a fallacy when you haven't outlined your wants, needs and concerns with your agent. Most real estate professionals will try get you the best bang for your buck but like you said, we do not have a crystal ball. That is why we provide you with a Market Conditions Advisory that explains the cyclical nature of the real estate market among other things. However, if the prospect of losing your job is a concern, we will not be privy to that and that is a judgment call that you have to be willing to make.

Remember, a property is a commodity that is bought and sold. All commodities have features and benefits. One of the primary benefits that you will get from a purchase is a tax shelter. Whether that is a feature that you will be able to take advantage of or that you will benefit from needs to be addressed by you tax advisor. Maybe that is where you should start to find your comfort zone. Once you have done that, talk to a financial advisor to see if renting or owning is the way to go. Once you have fully satisfied yourself, go back to your agent with an open heart, mind and soul and most of all be true to yourself.

It is my opinion that there is no such thing as a bad market; only a bad position in a given market. If spending your savings to buy a home would put you personally in a bad position, then don't do it.

Sorry I didn't exactly answer what you were looking for but I think if you follow the advice I did give, you will be able to answer the question yourself.

I have had similar situations JR, I always ask for proof of funds because I have had some people put down cash and they were getting financing, they wanted their offer to look better.

this is the email dennis sent me"Sounds like you cannot answer the question? And yes i can afford to buy a home.
Thank you "

I was not insulting you, you asked a qestion I responded.
~~~~~~~~~~~~~~~
Don't you love it. Once when I asked for proof of funds I was told "don't worry I have the money". Like the seller knows this person from a hole in the ground.

All I did was ask a question I am a real estate agent and a Mortgage broker so Can you afford to buy a home is a great question, most people in trouble shouldn't have bought a home.

this is the email dennis sent me"Sounds like you cannot answer the question? And yes i can afford to buy a home.
Thank you "

I was not insulting you, you asked a qestion I responded.

Hi Dennis,
which RE Pros are you talking about? The ones you talked to and the ones who know all your back ground all your reasoning for deciding whether to buy now or later or not at all...... Do we know where exactly, what type of property, what price range and for how long and as a primary residence or an investment property, should I add a few more questions before even willing to give a professional opinion. And yes remember these are just professional, educated opinions, given that we know as much as possible about the clients reasons for wanting to buy and all those details mentioned above! And that we will provide the potential buyers with good market evaluations and a solid market overview of the area they are considering.

As Realtors we have to follow a strong code of ethics and we base our professional guidance and opinion on what the market tells us at the moment and what we know or what our clients tell us about their needs and reasons for potentially buying.

And yes there are circumstances where buying now is a good time, and there area also situations and circumstances where the recommendation should be wait, or rent or whatever the situation may be!

And believe me as Realtors we are fully aware that it is our clients the buyers who are making a big decision, often the largest financial decision in their lives and yes its their money - of course!

At the end it is always the client who has to make the final decision whether to buy now or not, to sell now or not etc. etc., We are giving them all the information available and our very best expert opinion, we try to explore all their options, but at the end it has to be the buyer's decision.

Are you moving to the US, do you want to invest, why the question?
Take care!
Edith edithsellshomes@gmail.com

If you are outside the US and planning on moving here and are freaked out about buying now, then don't buy. You will just torture yourself. Come back and rent for awhile. Watch the local market. if you see the prices are stable (that's sold prices) for a few months, and homes being sold with multiple offers (we still have that here in SF Bay) then consider buying. Also look closely at the foreclosure rate, because that is what drives prices down. Bottom line, do your own homework. Find a Realtor you trust. They can get you the info you need to make an informed decision. You must interpret the information though. Also, you can look at REO listings here http://sanramonagent.yourkwagent.com/atj/user/AdditionalGetA…

I'm still in the "buy now" column, and there is one factor I didn't see in Steve's otherwise fine response, which is "How much do want to bet on interest rates?." Beat on a calculator a minute comparing the price of a home you'd be likely to buy with what happens if interest rates go up while you're waiting. Start with a 1% gain from today, then try 2%, which is not at all out of the question in the next six months. Waiting lets you try to buy at a lower price and hope rates stay the same as today. Those are two big gambles. If you want to take both, and can otherwise afford it, wait. If you don't, buy now.

Hey Dennis,

The best real estate agent learn to say no.

For example, I had someone that wanted to buy but would only be here two years.

I told him to rent because by the time he put money down plus closing costs in and out, it made no sense even if the house went up 10%!

All agents are not like you've described!

Hi Dennis, I currently have a self-inflicted recession happening due to the fact that I have been telling my Buyers to wait. I take my fiduciary duties very seriously.

I obviously don't know all of your plans for purchasing; however, in general, I'm suggesting that my buyers hold off at least until the end of Q109, and will probably shift to Q209 the way things are going. If you are looking to team with a Realtor who does not subscribe to the "It's a great time to buy" mantra please contact me.

The question of purchase timing not only depends on where you are looking, but also your job security, timeline for ownership, financing selection, and the specific needs of your family. There are locations, such as Pleasanton, that are seeing price increases, but it depends on the specifics of the property subset (i.e. 3 bed/ 2 bath/ sq ft...)

There is a significant central point about Real Estate that anyone must understand in order to make the best decision for themselves: the purchasing of Real Estate is an endeavor based on specifics. There is a direct correlation between the comprehensiveness of needs identification and relative success in finding a home that meets your needs.

Trulia is a great source for getting many questions answered; however, when it comes to your hard earned dollars, you want someone who is focused on advising just you- even if that means advising you to wait....my suggestion would be that you align yourself with a licensed Realtor who will analyze the specific area you have identified and monitor its trend - SPECIFICALLY through the use of Comparative Market Analysis Reports that match your search criteria. Act on purchasing when it makes financial sense to do so. I would be pleased to offer this service to you

Whatever you do, please DO NOT:

1) Depend on Median-based statistics. A median is described as “the number separating the higher half of a sample from the lower half.” This measure, as well as Average-based measures, have no regard for any of the specifics you may be searching for. To really know what is happening you need your Agent to perform a Comparative Market Analysis based on the exact search criteria (specifics) you seek.

2) Rely on local TV newscasters or newspapers for housing statistics due to the heavy use of median and average-based measures. You aren’t looking for a “median or average-based home.” You are looking for the best home that meets your needs.

Nothing is certain when it comes to the US economy, so while I'm suggesting buyers "hold your cash”; at the same time they also need to be ready to flash it. Meaning, get out there and start looking after you get pre-approved! You have to be looking in order to find the long term diamond in the rough and when you do you'll know it because your gut will tell you it's worth getting into the property even if it continues to dip a bit before going back up.

Accomplishing a Pre-Approval is your first step as far as buying so you can be ready to act when you need to, or be aware of any issues that may prevent you from buying when you want to. This link explains what a Pre-Approval is, and at the bottom is another link to the documentation you will need (based on sources of income). http://www.Steven-Anthony.com/default.aspx?pp=39377

Best, Steve

We would also have to ask, where are you buying?

Sounds like a baited question.

First I would ask, Can you afford to buy a home?