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Asked by Janice Clark Roosevelt, Inkster, MI Mon Oct 27, 2008

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Answers

50
Tracy Nelson, Home Buyer, 19446
Sat Apr 4, 2009
Delusional or gold-digging sellers. The type who bought a home three years ago and think it's appreciated 50%. Or the type who put in a 50K kitchen and think they've increased the value by 100K. I can't tell you how many homes we've looked at that were ~25K over our "top end" that had some kind of improvement (kitchen, sun room, etc) done to jack up the price just before they went on the market. Sorry, sellers, but if you'd just left the place alone and priced it accordingly, we'd have bought. It's gotten to the point where I mainly focus on "as-is" or "handyman special"-type places, because I'd rather buy a house and spend the money to make it the kind of place that *I* want, rather than pay more money for something trendy I don't want (like granite countertops or whirlpool tubs).
3 votes
C, Home Buyer, Pennsylvania Furnace, PA
Sat Oct 17, 2009
Helaurin,

I didn't realize this was a place to list houses for sale. Your "answer" doesn't really advance the discussion.
2 votes
Dawn Fussell, Agent, Phila, PA
Mon Oct 27, 2008
Hi Janice

I like to ask the same question. I have so many that feel it is a bad time to buy, but what they aren't reading is true info. The media has portrayed such a bad seed to our consumers. I am a newbie and it is hard to get my clients to trust me and the numbers I present to them about their particular area they are wanting. Also other realtors are in their ear going against what i am saying to my clients. if somebody else have any comments let me know. Maybe I am doing something wrong.
2 votes
Tracy Nelson, Home Buyer, 19446
Sat Oct 17, 2009
Since this question has been gaining some traction recently, I thought I would chip in. I previously reported that we had had our offer accepted on a house in Worcester. Then we had the inspection, and found that it was about 30 years into a 25-year roof, had some kind of "roll-your-own" septic system and four separate electrical systems (each with their own box, and some connected both to the main service drop and one of the other breaker boxes). That's when the sellers decided that not only were they not going to perform any repairs (which they had already stated) but they weren't going to reduce the price or give any money back at closing to fix any problems. So we adjusted our offer accordingly, they rejected it, and we all got on with our lives. A few months later we found an even nicer house in the Upper Dublin SD. It was on a smaller lot, but it backs onto some township-owned greenspace, and was overall in better condition. We had the usual back-and-forth with the sellers (we offered lower than their asking, they split the difference and we said OK, then asked for some money back to repair a leaking shower in one of the bathrooms). We just got all the papers signed yesterday, and we close on Dec 4th. Good think we're not eligible for the first-time home-buyer's credit, or we'd have had an issue!

A lot of the credit for this goes to our realtor. She gave us a heads-up when the property was first listed (it was classified as "active/no showings", which apparently means it won't show up on regular searches). It was available for showings on a Saturday at noon, and she got us in there by 12:30. Made our offer on Monday, had it accepted by Tuesday, inspection was Thursday, and getting estimates and haggling took another week. All along, our realtor did what I always through realtors were *supposed* to do -- took our side, negotiated in our best interest, and advised us as to what we should expect and how much to ask for and how much to accept. Sadly, this hasn't been the experience we've had with some other realtors we've worked with.

So, in summary I guess I would say that even if this is a "buyer's market", it's key to be very pro-active and get a good buyer's agent. Don't just wait for some automated script to pull together a list of properties that fit some profile: get on-line and search things our for yourself. Send your realtor the MLS #s of properties you find. Get 'em early and be ready to move. More than once we delayed making an offer on a place we liked because we were waiting to see some other houses on our list, and by the time we'd seen them the place we liked was gone. Obviously, the house we're buying was technically on the market for two weeks, but realistically it was more like three days (I think they stopped showing it after the sellers verbally accepted our offer).
1 vote
Tracy Nelson, Home Buyer, 19446
Wed Aug 12, 2009
Well, I guess I have to answer "nothing", now. Our offer was accepted on an old brick rancher in pretty good shape (inspection's Friday, I guess we'll see just how good) in Worcester (Norristown zip code, Methacton SD). It's more than we wanted to spend, and smaller than we wanted, but it seemed like a good deal, and one thing we've noticed over the last year or so is that good places go fast. We saw the place after it had been on the market for a week, make an offer the next day, and when we stopped in to initial the contract on Monday the listing agent mentioned that she had two other buyers who were asking about putting in back-up offers. So I guess Grace is right, people are buying when desirable properties come up, I guess we're just much more cautious (maybe reluctant) to buy a place that isn't compelling.
1 vote
C, Home Buyer, Pennsylvania Furnace, PA
Sun Aug 2, 2009
The main reason I haven't found a house to buy? My husband and I don't want to live in a 4000+ sq. ft. house with 3 1/2 + baths to furnish and heat and cool and clean, only to live in half or two thirds the space we're paying for. We also don't want to live in a cookie-cutter neighborhood. Many of the smaller houses in our town, on the other hand, are too small for us, and if we did an addition, we would over-improve for the neighborhood.

Greed/delusion on the part of sellers is another reason we haven't bought yet, but others have already mentioned that.
1 vote
Yoda, Home Buyer, West Chester, PA
Wed May 13, 2009
Some good answers, some bad answers, and some which weren't really part of the discussion.

My take on it is that Debbie's answer is the best, but she's missing a very important part of the answer.

Greed.

Folks just aren't getting the message that the housing prices of the past few years were overstated. I just walked away from several properties in my area where the seller and selling agent (who is understandably at the mercy of the seller) wanted a price that exceeded the appraised value of the home. Save for the seller, no one thought that the property was worth that much.

Another good example was touched upon earlier in this thread. One property I was originally interested in, but declined to pursue had major issues with the roof, garage, electric, and basement. None of the required fixes were expensive on their own compared to the cost of the property, but when you put them all together, we're talking about 45K+ in repairs. The house was listed for $390K, which was about the same cost as other homes with comprable features, but in much better condition. When asked as to why the seller was asking for that house when other homes were in better condition at the same price, the response was that the seller just installed a bar and that added 20K to the price. FWIW: the bar was a $2,500 expense and put in the main living area. No plumbing or electrical work required. How does that equate to 20K added to the property value?

I think too many people are forgetting that it's a "buyer's market". I'm not in a situation where I have to buy NOW. If you want to play poker, I'm good with it since I know that so many people who didn't see the financial warning signs and tried to play the market are simply bleeding chips now with the dream of making FY2004 profits in FY2009.
1 vote
Cindy, Both Buyer And Seller, Downingtown, PA
Thu May 7, 2009
JR, not sure what you read that led you to believe I am self-employed. I am not. I work in the IT field and make a wonderful living. Your answer about me "not taking money from YOUR pocket" smacks of unprofessionalism and downright rudeness. I was simply asking a honest question and looking for some feedback.
I won't be putting money in your pocket either, because I have only one real rule when it comes to dealing with vendors and other professionals....you've got to be nice to me. You weren't...I'm done with this forum. And thankfully have a found a wonderful agent to work with who is very knowledgable, and nice.
1 vote
Grace Hanamo…, Agent, Cupertino, CA
Wed May 6, 2009
Cindy, I dont know if you'll read this but...

Realtors are, like you, a professional with a job. Unlike you, however, we don't make ANY money unless someone buys or sells a home. Does this mean that the 6 percent fee is etched with a diamond in marble and cannot be changed? No! But then, if the homeowner is willing to think a little bit outside the box and work with the agent in performing some of the duties of the agent, then there's no reason that this fee can'be dropped to a level approaching 1 percent for the listing agent and 2.5 percent for the selling agent for a total of 3.5 percent on the sale.

All Realtors say, fees are negotiable, but that little bit of commission rhetoric has been proven true by today's real estate professionals. From facilitators who work to complete the documents for the buyer or seller, to low cost agents who perform limited duties for reduced commissions, if you have the will to sell, there is a way to work with a professional real estate agent and have a financially agreeable outcome. Give your Realtors a chance by telling them your situation and negotiating a fee that will be acceptable to both.

I think you might be pleasantly surprised.

Oh...and as to the question here...

I think buyers are moving to buy now. Unfortunately, for many, the best homes in the most desirable neighborhoods are becoming desirable to more than just a few , and multiple offers abound on many appropriately priced home. So while unemployment does loom large, the chance that prices may finally be moving upward has caused many to move from the fence to the turf where they are in a full on sprint to find a good home in a great school district.

Thanks for the question. And good luck to you, Cindy!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
1 vote
Cindy, Both Buyer And Seller, Downingtown, PA
Tue Apr 7, 2009
Here's a follow up to my previous answer.....we really want to buy right now. We'd like to move closer to our children and grandchildren, in the West Chester, Glen MIlls area of Pa. Our dilemma? We bought our current home 2 years ago for 546K. We have no delusions about recouping the 50K+ in upgrades, but unless we plan to rent our next home, we need our down payment back, plus closing costs and oh yes, the fee for the realtor. Additionally, while my husband and I are both still employed, his company recently announced backruptcy. We'd love to buy, but first we have to sell.....and if we lose our down payment, how can we proceed? Here's my question to realtors ~ in these tough economic times when everyone is cutting back, why can't you guys cut your 6% commision to help both buyers and sellers????
1 vote
Dp2, , Virginia
Mon Apr 6, 2009
"No one wants to buy when prices are headed down even more."

Actually, that' statement is inaccurate. Warren Buffet, Donald Trump, and several other real-estate moguls have publically come out and stated that they're buying. Additionally, I'm buying, and I know of hundreds of others who are also buying. The key to buying in this market and not losing one's shirt is to learn how to buy the properties the right way.

In the recent past, lots of buyers purchased properties based upon speculation: they speculated that home prices would continue to escalate ignoring history and all of the other warning signs. Unfortunately, some of them are learning now that which they neglected to learn then: buying on speculation is the wrong way to buy--especially for investors.
1 vote
Dp2, , Virginia
Mon Apr 6, 2009
Brett, if your rental generates enough positive cash-flow for you to pay your expenses and yourself, then the situation with your primary job shouldn't be an issue. However, depending upon when you purchased your rental, SFH rentals in many coastal markets didn't immediately cash-flow positively (as they do in many Midwest, and Texas markets).

An option for you might be to seek commercial financing: get a blanket mortgage to refinance your rental, and to acquire 1or more rentals. Another option for you might be to flip your rental to another investor (perhaps via a 1031 exchange), and use the remaider of the proceeds (if any) along with some financing to acquire 2 or more properties for what you paid for the previous rental.

The point is that you have a lot of other optios--some involve using more creativity.
1 vote
Dp2, , Virginia
Sat Mar 21, 2009
Delusional sellers. Some sellers don't realize that they're not going to sell their properties in this market unless they sell their properties at or below the current market value (of course depending on the condition of those properties).

Realistic sellers, on the other hand, who realize that we're in a buyer's market will do well, because we (investors) haven't stopped buying.

Now, I'll ask a similar--but related question: What's preventing many agents from recognizing us investors as legitimate buyers? If you want to sell, then sell to the buyers who ARE buying.
1 vote
Cindy, Both Buyer And Seller, Downingtown, PA
Fri Feb 6, 2009
Let me tell you what is stopping us.....just had our current home appraised, and after 50K of upgrades, the appraisal came back 40K UNDER what we paid for the place. That's a significant loss.....I'd love to buy right now. I just don't think we can afford to.
1 vote
Don't Buy Yet, , 19145
Tue Aug 24, 2010
Well, Janice, how do you feel now, almost 2 years later? Was it still a great buyers market in 2008? According to realtors, it's always a great time to buy. We're still in bubble territory, take a look at a chart of historic home prices, the current "bottom" still exceeds the previous largest bubble peak when you adjust for inflation. Of course realtors won't tell you that, according to them it's a great time to buy and your home is the best investment you can make!
0 votes
J R, , New York, NY
Sat Oct 17, 2009
Helaurin, what is more important is what other comparable homes sold for. Houses are being sold for below their appraised values today. The previously 3 months were the best we've had in a year because first time buyers were able to buy, and those homeowners were able to move up.
0 votes
Helaurin, Both Buyer And Seller, Havertown, PA
Sat Oct 17, 2009
Okay, so my previous answer was perhaps too vague... what is stopping me from purchasing in this "absolutely" phenomal buyers market is that I need my house to be bought first - as I do not have free money available to put a downpayment on the house I am going for. When someone hopefully buys my house, then I will have the money from that sale to put down on the house I am now leasing.

What I would like to know - is whether the house I have for sale seems to be appropriately priced to potential buyers; it would seem to me that by pricing my house below the value that it was appraised at before a lot of improvements were done, that it should fit into the "phenomenal buyers market" where buyers ought to be interested.

Does it make sense that if a seller takes a house, has it appraised, does about $15,000 improvements, and then prices it below the pre-improved appraisal value, that it should attract some interest from potential buyers? That's my question.

.
0 votes
Yoda, Home Buyer, West Chester, PA
Wed Aug 12, 2009
My continuing experience has been a bit futile actually. I got back from a "buy of the century" a few days back... the place was infested with field mice, had water and mold damage, in addition to about $150K of other updates which were required (taking it out of the territory where I'd consider it to be a "deal).

From my original comment, I said that greed and the dream many sellers have of making FY2004 profits in FY2009 is what's preventing a lot of people from purchasing in this market. I've got a great example of this. One of the listings on Trulia (in Newtown Square, PA) was a property I looked at. The house was listed for $389,900K and was a travesty of worksmanship (basically it was a ranch that was converted to a two-story home, and I think it was done without permits or oversight based on the quality of the work). The rest of the house, garage, roof, etc. needed updating and major work. I immediately passed on this property and moved on; however, it kept coming up in my searches on Trulia.

I saw it get reduced to $379,900...
I saw it get reduced to $369,900...
.
.
.
I saw it get relisted (so everyone thinks it's new on the market... another distasteful tactic IMO) and the price went to $419,900, where it's stayed for the past month or so.

and people wonder why buyers aren't buying...?
0 votes
Tracy Nelson, Home Buyer, 19446
Fri Aug 7, 2009
FWIW, when we sold our first house, I *was* offended by a buyer's first offer (a good 25% below our asking price, IIRC), and didn't offer a counter. They came back within a couple of days with a more reasonable offer, but I was still ruffled from their first offer and countered with our asking price. They came back the next day with a fairly reasonable offer, and we countered with something in the middle, which they accepted. So if you're dealing with me, even if you insult me with a lower opening offer, it doesn't mean we can't work something out. I'm hopeful that a lot of sellers are the same way.

Actually, we recently did make a low offer (about 13% under the asking price) for a property, and the sellers said that our offer was "lower than they cared to consider", with no counter. I'm guessing they were offended. Unfortunately, while they had comps to back up their asking price, I had comps to back up my offer, so I wasn't disposed to go chasing after their price. If they had at least tried a counter, maybe we could have gotten somewhere (we're getting desperate). As it is, I just put a watch on the property so Trulia will let me know what it sells for. I'm curious as to whose price will be closer to the actual sale price.
0 votes
C, Home Buyer, Pennsylvania Furnace, PA
Thu Aug 6, 2009
JR: I wonder if people will continue to want Mc Mansions as the cost of maintaining them and paying the energy bills on them becomes too expensive (not to mention terrible for the environment). And I wonder if the reason you had no problem selling them before is that if people wanted new construction and couldn't afford a custom-home that was pretty much the only option. I know more than one person who settled on a Mc Mansion because that's pretty much what's available here.

I feel exactly as you do, Tracy, that we won't even find anything to settle for. And Sepabuyer, our realtor has told us the same thing: that seller's will be offended if the offer is "too low." But, of course, it's in the interest of the realtor to want the sale's price to be as high as possible. I guess you can always try making a low offer and see how the seller responds.
0 votes
Tracy Nelson, Home Buyer, 19446
Thu Aug 6, 2009
Dag, I'm moving to Landenberg! I'd love to find an old rancher that needs updating! All the old ranchers where I've been looking have either already been "updated" (by people who think that a $20K kitchen remodel justifies a $50K price hike) or basically destroyed. I'd enjoy updating a house, and I don't mind making even significant repairs, but when a house gets to the point where I have to replace the floor, the subfloor, get the joists sealed and replace all drywall that's knee-high or lower in order to get rid of the pet odor, then that's a little much. And I've seen more than one of these.

Good luck! I know what it's like when you can't seem to find anything you like. Heck, I'm at the point now that I'm afraid I won't even find anything to settle for.
0 votes
J R, , New York, NY
Thu Aug 6, 2009
Things are either cookie-cutter mc mansions in blah neighborhoods, or old ranchers that need major updating. Where's the happy medium?
~~~~~~~~~~
Yep that’s always been my complaint, too. What can you do, that seems to be what most people do want because they had no problem selling a ton of them.
0 votes
Sepabuyer, Home Buyer, Landenberg, PA
Thu Aug 6, 2009
Things are either cookie-cutter mc mansions in blah neighborhoods, or old ranchers that need major updating. Where's the happy medium?

Also, it's hard to shop when you don't know what the "real" price tag is on a given property. Agents tell buyers that a lowball offer will offend a seller... What about the sellers delusional asking price offending buyers? Things are still going down, so realtors should quit pretending buyers need to buy today or they'll miss the boat.

We recently saw a home that has been on the market for nearly a year. It needed serious updating, and the asking price had not changed once since it was listed in 2008. No wonder nobody is biting.

I can't believe people were all in tizzy when it was reported that June new home sales were up 11% from May. No mention of the fact that they are still down 21% from PY. And prices are still down 12% from PY.
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Thu May 7, 2009
Janice - to get back to your question........here, in my opinion, are reasons why buyers aren't buying:
1. they lost their job
2. they fear losing their job
3.they lost part or most of their downpayment with the stock market downturn
4 .they never had a down payment in the first place, and now mortgage requirements are more rigid (as they should have been all along!)
5. they no longer qualify for a mortgage, even if they do have a down payment (reference back to newer , more rigid qualification requirements)
6. they are paralyzed with fear because of the turmoil with the economy
7. their overall net worth has been depleted by the economic downturn, and no one likes change when they are afraid
8. paying rent is a fixed expense - owning a home involves unexpected repairs and maintenance items, so many people feel more secure keeping that fixed expense for now
9. people are fearful of where the market is going, moving forward

That all being said - there are still many buyers who can afford to buy, and are doing so. In fact, I just sold a luxury condo for almost 10% above the list price (there were multiple offers) - the seller and listing agent were smart enough to price it below market value, and it paid off. Good values are out there, and astute buyers recognize them. Those buyers are ready, willing and able..........many people may be ready and willing, they just are no longer able.

I think as agents, we need to be sensitive to buyers and sellers and their specific economic situations. I really feel for my sellers who are losing money. Many are not losing, however, they are just not making as much as they hoped for. When the market was hot, no seller ever offered to have me share in their huge profits. That's ok, but I can't make up for the deficits the market is creating now, either, and I don't like being asked to.
I am working harder and longer to get the job done, with more resistence these days - often from sellers who aren't being realistic. As far as negotiating my commission - some seem to be overlooking the fact that most of us work for BROKERS - I don't own the company - I work within limitations that my company sets . The CEO of my company bears the burden of running the company. It's not easy to own a real estate company these days. The costs are enormous, demands greater , and profits, IF they still exist, are way down. I think we are all just doing the best we can.

Let's all hope for better times ahead. Thery're out there!
0 votes
J R, , New York, NY
Thu May 7, 2009
Here's my question to realtors ~ in these tough economic times when everyone is cutting back, why can't you guys cut your 6% commision to help both buyers and sellers????
~~~~~~~~~~~~

You say you’re self employed and you need money for your next purchase. . . guess what?! I’m self employed too, and you’re not going to take it out of my pocket.
0 votes
Dp2, , Virginia
Thu May 7, 2009
Yet another great post from Grace. :)

I like your style, and I'll definitely have to look you up if I decide to also invest in the Si valley area.
0 votes
Elsa, Home Buyer, 08053
Wed May 6, 2009
Uncertainty about our jobs!
0 votes
J R, , New York, NY
Tue Apr 7, 2009
But I'm not changing my comment because I don't make mistakes...LOL
~~~~~~~~

I'm never wrong. I thought I was wrong once, but I was mistaken. :)
0 votes
Voices Member, , Benton County, OR
Tue Apr 7, 2009
Just noticed I didn't do the right thing, like read your comment correctly. You didn't agree someone else did.

But I'm not changing my comment because I don't make mistakes...LOL
0 votes
Voices Member, , Benton County, OR
Tue Apr 7, 2009
Almighty Trusted Adivisor in the Community, ; ) you're not going to get a Best Answer everytime just for agreeing with people. LOL

We the People, always complain about price. I'm already complaining about what it's going to cost me to see the new Star Trek movie, plus dry cleaning my uniform, and new phaser gun is making it all an investment for tax reasons. Do you think the value of Star Trek will decline?

It's human nature to complain about price, you quiet it all down with what you end up providing in return.
Because of everything going on and what has happened many have doubt, it's only natural.

That guy, Dunes
0 votes
J R, , New York, NY
Tue Apr 7, 2009
I have to agree with Cindy. I certainly can understand that realtors deserve to be paid well for the advertising, marketing, and legal contract expertise that they provide in a sale. However, when sellers are offering to lower, lower their price, help with closing costs, and suck it up that they are going to lose a vast chunk of the equity they have in their home if they sell now, it would be nice to have a little support from the listing agent.
~~~~~~~~~~~~

When houses were going for astronomical amounts people such as yourself were saying that it was too EASY to sell a house and we were making too much, now prices are down and were making too much because they're selling for less? This is similar to asking a buyer to pay more because a seller owes money. It’s very difficult for an agent to sell a house these days. If they achieve a sale in their market, they are well worth their fee.
0 votes
Dp2, , Virginia
Mon Apr 6, 2009
"If you mean he's 'investing in real estate', then I have no doubt he is, . . ."

That's exactly my point: he even mentioned this during one of his CNBC interviews.

"Those of us who are buying a home as opposed to an investment property have to worry about such things."

Some people--especially a few of my RE investing mentors--might argue that anyone in that position can't afford to not invest in RE. I admit that this concept is counterintuitive, and it goes against much of what I learned in school/college. However, I've crunched the numbers, and the results make sense mathematically.

For example, let's say person A purchased a SFH in 2001 for 80K, it appreciated to 160K by 2006, and its current market value has since declined by 40% (of the peak value). Assuming the property is market ready, s/he could sell it for 96K, and collect a profit (pre-tax) of 16K. Assuming s/he had decent enough credit to be able to get a FHA loan for 195K (6% APR, 30-year fixed), s/he could purchase a multi-family property--like a 4-plex (for 211K) to live in one of the units, and rent the other ones. According to zilpy.com the median rent for a 3/2 property is roughly 1350, and the median rent for a 2/2 is roughly 949. So, you'd collect 949 for the other 3 3/2 units, be able to pay your mortgage and expenses (including property management), and earn roughly 584 per month (pre-tax).

"I also doubt that many 'real-estate moguls' are planning to resell residential properties -- they're more likely to buy failing strip malls or corporate centers. I guessing those property values aren't doing much better, though..."

Most investors I know (and even some whom I don't know personally like Warren Buffet and Donald Trump) invest in commercial and residential RE. Although some strip malls, office buildings, and retail space property owners have started to feel some of the crunch (mostly due to the job losses--rather than bad fundamentals), apartments and medical office buildings still have strong demand in many markets.
0 votes
Tracy Nelson, Home Buyer, 19446
Mon Apr 6, 2009
"Warren Buffet, Donald Trump, and several other real-estate moguls have publically come out and stated that they're buying."

Doubtful. Warren Buffet's lived in the same house since 1958 and has no plans to move.

If you mean he's *investing in real estate*, then I have no doubt he is. I do however strongly doubt he's worried he may not be able to send his children to college if he picks a property whose value plunges over the next five years. Those of us who are buying a home as opposed to an investment property have to worry about such things.

I also doubt that many "real-estate moguls" are planning to resell residential properties -- they're more likely to buy failing strip malls or corporate centers. I guessing those property values aren't doing much better, though...
0 votes
Million$prod…, , Palo Alto, CA
Mon Apr 6, 2009
"CBS) Dozens of angry investors last night sued Donald Trump, the high-profile real-estate magnate who lent his name to a failed hotel-resort in Baja, Mexico that went belly-up.

They were out millions of dollars, and now they want Trump to pay up, as CBS News correspondent Ben Tracy reports. "

http://www.cbsnews.com/stories/2009/03/14/eveningnews/main48…

Great time to be in RE - just ask Donald Trump.
0 votes
Peter Bruno, Home Buyer, San Bruno, CA
Mon Apr 6, 2009
These reasons:

1) My job, not sure if I will be laid off and facing the possibility of a long unemployment period in these tough job market. Don't want to be in a position where I can't afford to pay my mortage and I can't sell my house quickly either.

2) Not interested in foreclosure properties. Prices have gone down for these segment and they are selling. But, I am looking for a place that is in move-in condition and in a good neighborhood. I am seeing that inventory and sales for non-foreclosures are still slow moving.

3) Changes in consumer spending. This recession has taught us to be more careful with money and that idea of spend and spend more that in part fueled this RE boom has brought us consequences. Therefore, before we make the biggest decision of our lives, we want to take time and think it carefully, and we rather be burned on the upside than on the downside.
0 votes
J R, , New York, NY
Mon Apr 6, 2009
Warren Buffet and Donald Trump have lost Billions of dollars already from RE in 2009.
~~~~~~~~~~

Have they? Really? Can you back that statement up?
0 votes
Dp2, , Virginia
Mon Apr 6, 2009
"You need to come up with a better pitch than Buy Now becuase Donad Trump says so."

I'm not an agent, and I'm trying neither to encourage nor to disuade anyone to buy anything. I simply rebutted the "no one wants to buy" part of the statement, because clearly some people (myself included--and I'm not even close to being a billionaire [yet :)]) want to buy now, and are currently shopping around.

Furthermore, it actually helps my bottom-line somewhat when I encounter "futurists" who continue to predict greater declines in pricing, because that kind of mis-advice scares away a lot of the competition (which helps to further weaken the prices). Nevertheless, I'm not an opportunist; rather, I'm an optimist and realist who sees lots of opportunity to profit--even in this market.
0 votes
J R, , New York, NY
Sun Apr 5, 2009
I just listed a house on Friday for just under the comps. I’ve been showing it non stop since then. All first time buyers with prequals.
0 votes
Brett Treat, Other Pro, Pottstown, PA
Sun Apr 5, 2009
I own one investment property and want to purchase another one but I am concerned about my primary job's security. In addition, my wife and I had talked about buying a larger home but our current house is not worth enough to sell it now. So it may be a buyers market but we don't have the cash reserves to float multible loans without liquidating some other assets in this economy.
0 votes
RowHouseGal, Home Owner, Alexandria, VA
Mon Mar 23, 2009
Too much competition! Really! We were out bid on one house and the other house we wanted to make an offer on had 3 in four days. It's not that easy to be a buyer where I live.
0 votes
Pat, Home Seller, Jax
Mon Mar 23, 2009
The fact that those "great deals" are short sales or foreclosures, many of which are destroyed or are taking months to close...
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Mrs.mita, Both Buyer And Seller, Merrimack, NH
Mon Mar 23, 2009
It seems like prices have come down a lot in my area and areas close buy. We would LOVE to buy right now because houses that we were looking at years ago and were out of our price range have gone down, but unfortunately the value of our house has gone down too and we cannot sell. We don't have enough money saved up to cover our losses and pay all the fees, taxes, and commissions that we'd have to pay when we sell.
0 votes
J R, , New York, NY
Sat Mar 21, 2009
I haven't seen prices coming down much. My 401(k) is down more than 30% off its peak, but house sellers are still asking the same prices as what their homes cost in 2007-08.
~~~~~~~
Asking prices mean nothing. Asking prices are the tags on houses with unsuccessful sellers.We look at successful sellers to see where prices are.
0 votes
Everard Kort…, Agent, Lancaster, PA
Sat Mar 21, 2009
I understand how buyers /sellers think about this market.
There is doubt about their future income and valeu of their savings.Nobody knows what the market is going to do in the next few years ,but based on what the government is doing there is a very good chance for serious inflation a few years from now.Inflation will make raw materials and labor more expensive. The value of land is depending on demand .
based on this we can assume that some time in the next few years real estate prices will on average first bottom out and than go up..
I use the following method to look at prices ,which is mine and not scientific.Don't blame me if it does not work!
There is a long term residential realestate trend line that started to go grazy in 2000. I take that point and add 3 % a year,the average inflation, to come to a level that should be the norm.This would be the value I would be OK with to pay for a property. If the asking price is higher you might need a longer time to get on the norm trend line. If the purchase price is lower you can feel OK and go ahead with the purchase.
Not all areas in the country are the same but in general it should work.keep in mind that over the last eight years houses might have become more luxurious and with higher ceilings or improved building standards .
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Voices Member, , Benton County, OR
Sat Mar 21, 2009
Was it more Phenomenal in Oct. 2008 or is it more Phenomenal now or will it be Phenomenal in
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Bill Eckler, Agent, Venice, FL
Sat Mar 21, 2009
The excuses used by today's buyers for not buying cover a very wide variety but the main theme at this time is the state of our national and worldwide economy.

People are intouch with the many reasons pointing to this being an opportune time to buy but are unable to "pull the trigger" because of this looming issue.
0 votes
MJ, Both Buyer And Seller, 32836
Sat Mar 21, 2009
The loss of equity and assets in every other realm. We purchased our home in 2003, well before the "boom". Now we can't sell it for even what we paid then. Too many houses on the market here in Florida, we can't compete in the race to the bottom and thus have no equity left to apply to purchase a new home. Also the loss in stock and investment values means no money outside of current home to put down. Danger of lay offs and pay cuts which are so rampant is surely impacting many peoples buying decisions. Just because home prices and interest rates are low, does not mean it is a great time to buy. Overall, this is not a "phenomenal" time for most people.
0 votes
Alex, , 19460
Sat Feb 28, 2009
I haven't seen prices coming down much. My 401(k) is down more than 30% off its peak, but house sellers are still asking the same prices as what their homes cost in 2007-08. So maybe home prices should fall a little further to be in line with other assets' values...
0 votes
Jim Conlin, Agent, Exton, PA
Wed Nov 5, 2008
Well Put!

I just read an article by one of the wisest money men in the world - Warren Buffett. He has a quote that fits this market to a tee - "be scared when others are greedy, by greedy when others are scared". He, of course, went on to say how scared others are right now, creating great opportunities to those in a position to buy.
0 votes
NonRealtor, , 23456
Mon Oct 27, 2008
Hi Janice,
You can buy a house, there is nothing stopping you, right? Let us know how it goes. Good Luck
0 votes
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