My little sister called me the other day and in an excited voice declared, “I think I might need to look at houses…It’s a GREAT time to buy a house right now, you know!”
After the pregnant pause ensued (the one where my condescending big sister brain struggled with my professional Realtor brain) I finally said, “No? Really? What makes you think that?” (You can tell which brain won out.)
“Well. I have a friend who just got a fantastic deal on a house and I think it might be time for me to think about looking!”
Ok, so which part of what I have been saying for months now did she miss? Apparently, the same part that ALOT of buyers are missing…that would be the part that sounds just like Charlie Brown’s teacher talking whenever somebody you aren’t listening to tells you something: Wah, wah, wah, wah…
It’s been on TV; it’s been on the radio; it’s been in print and on the web…where hasn’t it been if you’re a professional Realtor and tuned in to everything real estate ever since they first uttered the words U.S. HOUSING CRISIS!
But here’s the thing… if you are just another economic-shell shocked human being wondering what happened while you were busy enjoying the last twenty years of your life, it may well BE the first time you are realizing it! After all, we all know sellers who still don’t seem to understand that a buyer’s market means that they, too, will not be seeing the profit from the sale of their home that their neighbors saw last year. What in the world makes us think those same folks are out there telling their friends and relatives that they just heard it’s a great time to buy a house!
Its human nature to think that, as long as your world doesn’t seem to be terribly different, then all those problems THE MEDIA is describing must be happening to other people! After all, if you hadn’t really saved that much for retirement, you might not notice that 401Ks everywhere have become 201Ks. If you’re just getting started thinking about long term career goals, job loss statistics are probably lost on you. And if your friends and family don’t have to sell their houses any time soon, you may not have heard that the prices sellers are getting for their homes are easily 10 to 20 to (gulp) 50% less (depending on where you are) than last year’s sellers got for their homes. Just as this past presidential election cycle was the longest in recorded history, so too, it seems to many of us, is the recovery from the housing crisis. But if you don’t vote…or don’t want to buy a house…who cares? It’s only a Buyer’s market if you actually BUY!
Let’s face it, those of us in the business are fully aware that we are in the army now…if we, as professional Realtors, can get some of this housing inventory sold, we will have begun to win the battle that will lead to winning the war! And if we can win the war to get the housing market back on track, we will win the war to get the whole U.S. economy back on track! We are the key! (How’s that for a pep talk?!)
So what do Realtors have to do to get buyers to see that this is serious business? The government is anteing up $8000 in tax credit to get some of you moving. In fact FHA is getting ready to let you use that $8000 as part of your down payment…without having to wait until after closing! Combine that with unbelievable, never before seen, never again to be seen in this lifetime, interest rates (which, by the way, are just as fantastic for those of you who don’t qualify for the tax credit) and you guys should be fighting to get on my schedule to look at homes! I mean full on, no holds barred, hair pulling,fighting!
Oh, I know you’ve called me and we’re trying to get together...but, what with your vacation and all…how ‘bout next month? I even know a lot of you are working with other agents because you’re looking at my listings and you’re even having your agents call me to see if anybody else is looking at the house you like. But what’s up with having your agent write up a preliminary offer, spend days verbally sparring with me and my seller before reaching a tentative agreement, and then I don’t see another thing in writing from you for two weeks?
Buying a home is not a spectator sport! It is a major and serious step toward achieving the American Dream. You’ve heard of that haven’t you? That’s when you get a pretty little piece of dirt with a cozy little roof over your head to come home to after a hard day at work! A place to call your very own and nobody (well except for the HOA, and, of course, your Realtor when it's time to sell) can tell you what to do there! It's a place where you can paint the walls any color you want, invite friends over whenever you feel like it or get a puppy!
Give us poor Realtors a break… we've done all the work already, helping our sellers see that they need to provide you with a home in really great condition and at a really great price (no they aren't happy about that last one but THEY trust us.) How can you go wrong?
So, little brothers and sisters, I'm here for you! I promise to show you opportunities you won't believe are available! I promise to walk you through the process every step of the way and answer ALL your questions and teach you really COOL stuff about home ownership! I'm telling you there is a SALE, a REALLY BIG SALE on real estate right now and you shouldn't miss it!
I mean seriously, when it’s all said and done, when did your big sister ever really steer you wrong? Don’t answer that….
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With over 60,000 hours of practice in NC real estate, SarahGray offers knowledge, skill and professionalism that will earn your trust when buying or selling homes in Raleigh Durham or Chapel Hill, NC.
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First time home buyers need to be selecting homes now before interest rates rise. Why they are standing on the sidelines strange. Must be fear generated by the media.
Follow me on Twitter: http://twitter.com/roykelley
Sarah, I think your title says it all. One problem with the "buyer's market" mentality that the media keeps trying to drive home is that many buyers think that they can literally 'steal' the homes. While that may be the case in some markets, it's simply not true in most. Houses are finally starting to get priced right in many areas and multiple bidding is common-place. So not only do they need to be committed to buying, they also need to be committed to buying at a reasonable price.
Roy- I'm not sure it is fear as much as complacency! At least in my market! Thanks for stopping by!
Roger - Truer words were never said...I have to explain to sellers that we are pricing to get them IN THE DOOR and THEN they will STILL try to knock $20K off the price! It's a 'trying' place to be!
RBC Bank President Gordon Nixon - Salary $11.73 Million
$100,000 - MISTAKE (FISHERMEN'S LOAN)
I'm a commercial fisherman fighting the Royal Bank of Canada (RBC Bank) over a $100,000 loan mistake. I lost my home, fishing vessel and equipment. Help me fight this corporate bully by closing your RBC Bank account.
There was no monthly interest payment date or amount of interest payable per month on my loan agreement. Date of first installment payment (Principal + interest) is approximately 1 year from the signing of my contract.
Demand loan agreements signed by other fishermen around the same time disclosed monthly interest payment dates and interest amounts payable per month.The lending policy for fishermen did change at RBC from one payment (principal + interest) per year for fishing loans to principal paid yearly with interest paid monthly. This lending practice was in place when I approached RBC.
Only problem is the loans officer was a replacement who wasn't familiar with these type of loans. She never informed me verbally or in writing about this new criteria.
Phone or e-mail:
RBC President, Gordon Nixon, Toronto (416)974-6415
RBC Vice President, Sales, Anne Lockie, Toronto (416)974-6821
RBC President, Atlantic Provinces, Greg Grice (902)421-8112 mail to:greg.grice@rbc.com
RBC Manager, Cape Breton/Eastern Nova Scotia, Jerry Rankin (902)567-8600
RBC Vice President, Atlantic Provinces, Brian Conway (902)491-4302 mail to:brian.conway@rbc.com
RBC Vice President, Halifax Region, Tammy Holland (902)421-8112 mail to:tammy.holland@rbc.com
RBC Senior Manager, Media & Public Relations, Beja Rodeck (416)974-5506 mail to:beja.rodeck@rbc.com
RBC Ombudsman, Wendy Knight, Toronto, Ontario 1-800-769-2542 mail to:ombudsman@rbc.com
Ombudsman for Banking Services & Investments, JoAnne Olafson, Toronto, 1-888-451-4519 mail to:ombudsman@obsi.ca
http://www.pfraser.blogspot.com
http://www.corporatebully.ca
http://www.youtube.com/CORPORATEBULLY
http://www.p2pnet.net/story/17877
"Fighting the Royal Bank of Canada (RBC Bank) one customer at a time"
SarahGray: If FHA gets to the point where they allow the $8,000 Tax Credit to be used for a down payment... that would be just great. One more strong tool to help turn a "looker" into a "buyer."
Man I am so glad that someone has told it. I have been telling everybody and anybody that this is the time to buy if you are going to. People recently have said to me: "is it really a great time with the economy?" When would it be a better time I tell them and try to explain it even though sometimes I feel like I am talking to a wall. What else can buyers ask for, I mean let's see free money from our tax dollars for first-time homebuyers "HELLO" Interest rates that are below 5%, inventory that just keeps expanding, and sellers willing to make a deal, ANY DEAL with some. The prices are very competitive and builders on new construction in our area are really giving away incentives along with lowering the prices of new construction homes. Some even priced at tax value or even below with a few. So I don't understand what else we have to do to get this through buyers heads.
Great blog and thank you for writing it.
Love the post! It was right on and very funny, too...Keep writing and I will keep reading! Glad to be in your Army.
So true! Proof that you can't convince someone to buy or sell Real Estate, you can just provide great service when they are ready.
My first time home buyer clients are competing with investors here in San Diego and are having a hard time winning. We have had to become very diligent in helping our clients in the 200-300 range, but we remember the feeling of pride we had after moving into our first homes. Its worth it to make that kind of impact.
Kudo's for you self control with your sister!
Karen - It's true! Just announced today!
Royalyn - (What a pretty name) Keep talkin' sister! We'll get to them yet!
Holly - You can be a General!
New Team - You all have it quite different in Calif.! As ever, you are leading the way for the rest of us so keep up the good work!l
ABSOLUTELY the facts maam, just the facts! Great post, relevant, pro active and FUNNY, my favorite kind! Buyers stop thinking and start acting. Let's say it out loud together now, WELCOME HOME!!!
I may be the only one on this one with this "just tried to get a bargain" buyer. It may be a buyer's market but when does it switch to a seller's market? I just had a buyer make an offer on one of my listings and expected a bargain and didn't get it. The home is priced right for the neighborhood, community and the home is in excellent condition. The seller is not getting a divorce, nor moving, not in bankruptsy, has great equity, no late payments. No "a great time to buy a home" here. We're getting great traffic but we're not about to give the farm away in Texas. You buyer's come to us with 20% down (put some equity in), good credit, buy a home that's reasonably smart for you, not a 5,000sf ego trip. And my client will want to talk to you. And I've had two buyers back out of offers because they could not get the "mineral rights" for free or negotiated from the sellers. Good luck buyers. Are you buying a house or wanting to get into the oil and gas business. Make up your mind, you may not be able to do both.
Sarah Gray ( a few posts above) Your prayers have been answered, This just in from one of the best lenders in Southwest Michigan.
This is exciting news for first time homebuyers and the mortgage industry. HUD Secretary Shuan Donovan announced today at the National Association of Realtor Summit that FHA will allow the first time home buyer credit to be used for down payment at closing. Excerpts from his speech are below as well as the link to his full comments. Details on how it will work will be available soon.
Now is the time to review your situation or to tell someone who wants to purchase a home to call and find out what they can do. Heritage National Mortgage offers free pre-approvals to start the planning of your home finance options. Our economy and industry needs this type of positive information for home buyers.
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment.
"We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment," Donovan said. According to Donovan, the FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
http://www.realtor.org/press_room/news_releases/2009/05/re_summit?lid=ronav0019
I look forward to assisting you with questions and information!
From Our Family To Yours,
Pava
Pava J Leyrer CMC, CRMS, CMP
President, Heritage National Mortgage
Pava@HeritageNational.com
616-534-4993 phone
www.HeritageNational.com
The problem that I have run into lately is not the lack of buyers...but buyers that can qualify. We have buyers wanting to buy, but they haven't been smart about their credit in the last few years, months, etc. and their credit is so bad, they can't even apply for a loan because their credit scores are so low...I'm not sure why they are even looking. I always ask some qualifying questions before I show homes in order to make sure I'm showing to people who can actually purchase something. The last three "potential" clients I had "thought" they had good credit and when they came in to get pre-approved they couldn't even apply for a loan their credit scores were so low (one person told me he had a score in the mid 600's and it turned out to be a 447.) I wish people had paid more attention to how they used their credit...
Amen Sarah! I have put many hours into thinking how I could say just what you are saying.
Okay...I'm so laughing...I'm a big sister too!
The post was awesome....the funnies you made EVEN better and your point WELL TAKEN!
Thank you.
Great post and I agree. Things will be different this time around . . . thinking very positively. :)
Candice
Wow this is so timely! Just found out today that my SONYMA buyers have to go FHA and the Dad has to help with a gift. The $8000 at closing would take care of the whole problem!! Thank you!!
Amazing post!
I've learned a long time ago that people seldom listen to what others say. Well, maybe they do subconsciously, but perhaps it takes dozens of repetitions before the message sinks in. Then there is that "Aha!" moment you spoke about in your post whereby the person thinks it is their own discovery and they are perhaps the only person in the world that knows the secret, and they want to shout it from the roof tops. I like the way you've captured it with your post.
This was a lively and interesting post. Not just that--but it bounced around the country with feedback that helps keep me in the loop. That info about the tax credit being approved for down payment money was worth the cost of admission alone today. OH, I forgot. It just cost me my time!
GREAT BLOG! I ALSO AM A BIG SISTER. HAVE TOLD LITTLE SIS ABOUT BUYING BUT LIL SISTER
DO NOT ALWAYS LISTEN TO THE BIG SIS.
You're awesome, Sarah!
Great Blog. I can't wait to hear the whiners next year, when they all realize they BLEW it by "waiting until the market bottoms out".
By then the interest rates will have ricocheted back to 6-7% or more, and the deals will be all but snapped up by cash-rich investors already making a killing in the feeding frenzy out there stimulatd by all that foreclosure chumming up the waters.
Ah, woulda, coulda, shoulda...bought Microsoft at 10, bought real estate in '09...
ok... here the thing. If the buyers all start buying, it won't be a buyer's market anymore.
I am an only child...can I borrow a sibling to share this great news with???? LOL! I heard this on Twitter today from the chairman of our state association...this could be a boost for buyers! Thanks for the great post! Love it!
Thanks for the lighter look at this (how many times can I tell people that it's a great time to buy = buy now)? From one big sister to another, you know they never listen :)
Hi Sarah -- I just e-mailed my FHA buyer the link about the FHA/8K possible link. Thanks!!!!!!!!!!
Terrific post. Wish I could write as well as you. Funny, smart, good looking--what more could you ask for? Maybe some reasonable buyers and sellers. I'd like people looking for a deal and also looking for a win-win situation, not win-lose. I can't believe that there are buyers who forget that there are people who put their hearts, energy and money into their homes and are now being asked to give it away. Yes, the market dictates but buyers needn't be rude and nasty about it. First time home buyers are great to work with because, in general, they are appreciative and grateful for a Realtor's knowledge and expertise.
I just subscribed to your blog because you are eloquent with a great sense of humor. Looking forward to more.
Like I keep telling my buyer's "You can't afford NOT to buy!" Great post!
Hi Sarah, Good post. Thanks for sharing.
Best - Sash
EXCELLENT, I mean truly SUPERB write up. I loved it and will share it...
:):):)
Well said Sarah. Excellent post, definitely worth sharing.
Roy,
U hit the nail on the head. People have done this for generations. They sit and wait until the end cycle then jump in and get burned. They do what others do and NOT what others dont see where the opporunity lies...
Same with stocks so many Americans jumped in when the market was high and bailed when it got low instead of buying low and selling high...
Great post, Sarah!
I am the eldest of 4 and your comments brought a smile to my face recalling years in that role and being ignored. I am just the bossy older sister :)
I have also discovered that for some they need to experience things and do not learn watching or listening from others. They have to try things in their own way...walk their own path....have their own brick hit them in the head :)
Thanks Pava for the info on using the credit at closing.
Excellent post, Sarah! It needs to be said again and again....and maybe people who are not our relatives will listen and take advantage of all of the great opportunities NOW for real estate home buyers!
Sarah - first, you realize that family has no credibility until friends, and then the media, confirms what we say. As a matter of fact, if the media agrees with us, they might lose credibility. Second, thanks for pointing out the new down payment possibility. I will be keeping an eye on that.
Great Read, any buyer who reads this should be calling your office today. Love the "We are in the Army Now!"
You cant buy a house if youre unemployed ! isnt unemployment up in many areas....I see that as a major factor why we dont see enough "buyers"......you can't buy a home if youre temporarily employed. Some prospects were in excellant position a year or so ago....to purchase....but waited to buy....cause the media told them to wait for the bubble to burst..and wait...and wait....now those same prospects,,,,have been laid off,,,,,or experienced other traumas in their lives,,,,,so, the equation falls into place for today's high absorption rates.....lopsided "supply and demand"....etc etc etc.
real estate today....has entered the 'ME" generation........."M" =motivation and "E"= education. for buyers/sellers
Buyers and Sellers must decide their "motivation index"..........how serious are they?
Buyers and Sellers must be taught about today's current market and what it means for both. Both sides are facing
challenges. Our job will be so much easier if we learn how to interview...pre/qualify our client's motivation after we educate them....All this should take place at first meeting. Sellers need to understand about "price-point" analysis and adjustments...(for most ....price will be 95% of marketing). Sellers need to understand all "options" they will face.
Buyers also need to understand "price point analysis"....need to understand the Short-Sale and Foreclose Processes.
It's so important ...have you checked lately how many properties have the SS status.......in one county here in Chicago burbs...50% of all sales in 2008 were "distressed properties".......
Anyway....I didnt intend to write an article here......just started "venting" as I wrote this response...I enjoyed the POST ..found it "right-On"......I certainly agree....REAL ESTATE will get the good ole USA back on the right track...REAL ESTATE did it after 9/11....while the Stocks dropped....REAL ESTATE remained stable......and the country thrived.
If we continue to inspire "creative incentives"....and the "supply /demand equation levels....we're back on track.
It seems as though our country has entered the "ME" generation....most of us are modifying our lifestyles....getting back to basics,,,,,watching budgets.....EXAMINING our "Motivation" and how to succeed.....and most of us are becoming more and more "EDUCATED"...about what necessities and "Options" are offered.
THANK YOU, SARAH !
I LOVE it when a plan comes together! You all are great and thanks for the enthusiastic responses! Who knew siblings could be such great fodder for blog posts (I'll bet you do now!)
A special thanks to Ron Tiller for posting the Secretary's remarks!
I'll be doing my due diligence and visiting alot of you shortly! Thanks again!
P.S. @ Mike Schneider - struck a nerve, huh? I think you SHOULD blog about your ME factor...very good!
Sarah great article. I hope you don't mind but I am sharing it with my agents through our LinkedIn group. I wanted them to know that they aren't the only ones with this opinion.
Best Regards and keep up the great attitude.
SO VERY TRUE. It is amazing to me how many first time buyers and buyers in general don't know about the $8,000 Uncle Sam is bribing some buyers to enter the market. And for move-up buyers, WHAT ARE YOU WAITING FOR??? Absolutely NO better time to move up, none. Better buy now or be crying about missed opportunity 2-3 years from now.
Great post! I think buyer's are for a surprise!!! Not all areas are buyer's market!! I agree --only will be if they decide to BUY!! What is happening with my buyers: I send them listings, and they think they can wait and choose!! Surprise!!! If the house is on a good location, priced right, are seeing multiple offers now and will sell for higher prices. Then they scream... WHAT? this is a buyer's market!!!! Indeed, for the smart buyer that just put the offer on the house. LOL.... Some will learn... some won't!!! Touche
Thank you Sarah!!! I laughed, I cried....LOL!! These same lookey looks who won't pull the trigger now in this great buyers market will be complaining a year from now about what they could have bought at a better price or interest rate.
If we could just get people to turn off their TV's and stop buying in to all the gloom & doom that is projected everyday we could fix alot of things. Consumer confidence is a big issue here in the Tampa Bay area. Prices keep dropping and buyers keep waiting-instead of just negotiating a really great deal now. WE WON'T KNOW WHEN WE'VE HIT THE BOTTOM OF THE MARKET TILL WE ARE STARING AT IT IN OUR REARVIEW MIRROR!!!
Reminds me of an old Bee Gees/Sat Night Fever Song(I know, just dated myself!)-It goes like this-"Whatcha doin on your butt, on your butt?? You should be dancin.....yeah...."(in our case-you should be buying YEAH). Ok, so this market does tend to leave us too much time to let our minds wander!! LOL!!!
Good post big sister. Everyone's all confused as to what to do - funny you've been telling your sister that all along and then she actually pays attention to someone else not in the business!
I really think now is the time to buy. I don't know when the prices will climb again, but the interest rates are so low it is hard to believe.
I'm exited about the tax credit for down payment for my clients. It's definitely a nice nudge for those who are going FHA. Yes, it's a great time to buy!
Once this incentive is available for the down payment, I think a lot of hesitant buyers will jump off the fence and get serious. This is something we all have been hoping for, and it should make quite an impact in my area. Very exciting news! Thanks for the informative and well-written post!
YES! So true, and what are the buyers waiting for. Once the interest rates start going up (and they will, maybe sooner than we'd think even), then we'll see the rush to the gates. People are cattle.
This market is great, but buyers still think that everyone is desperate to sell and that homes can be bought for pennies on the dollar! This is a harsh reality for some and, yes, there are some great deals floating around out there, but we still have to educate buyers daily as to what the market really is like. It is such a great time to buy and it may not be this good ever again. Let us all keep praying the market continues to get better across the country!
Great post - well written and on the money!!
Thanks Sarah.
You are absolutely right, realtors will do their job or the economy will faulter forever. Also, if troubled home owners ever do have their loans renegociated, loan officers will have to be involved because they are the only ones who know the paperwork. It is rediculous to assume the the mega banks tellers can handle the complexity of the transaction. All they are actually doing know is egnoring short sell offers and foreclosures because that is all the know how to do.
Those yahoos is Washington fially did SOMETHING right in the 'first time home buyer" program. To bad that they are just now reallizing 'not enough money for down payment" is the biggest deturent to purchase. The $8,000 is of little use if they can't get to it. We've just put together a company to monetize it by using a asset purchase like the IRS rapid refund. This method could be used all over the nation. Trouble is time is so short to put all this together. I just wish congress had thought this thing through better.
Good article. Love your writing.
Randel
Great post!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Thank you...just what I needed at the end of the day!
I am a big sister, too, and also the smartest kid in our family - - but they don't listen to me either! When the tax credit first came on the scene, I had a young buyer ask me if it was possible to use the credit up front as a down payment - - you can bet I'll be contacting him tomorrow with the news that FHA is implementing his suggestion! Thanks for the entertaining post.
SarahGray....this news from FHA about the downpayment use of the $8000 tax credit is awesome! I've got to get THAT word out...and maybe that will open my flood gates of business? Let's hope so!
Great post....love your take on the Big sister advise!
Attention: ALERT THE MEDIA!!!
Thank God for your big sister (And her friend who got a good deal!)
Otherwise...none of us would have ever known about the real estate bargains out there.
Wow...now the big secret is out! I fully suspect that your sister's declaration to you regarding market conditions - will to make the headlines.
We've all been waiting for the big sisters of the world to finally speak!
I know I'll sleep better tonight.
Carol...wondering why nobody has been listening to the good news out there until now?
www.ActiveSunshine.com
It's the opposite of the discussion we had with sellers that the house wasn't valuable as money unless it was sold and converted.
Buyers who choose not to buy will wonder why not when prices and interest rates are up later.
I think we need bumper stickers made up with your headline...
It's ONLY A Buyers Market If You ACTUALLY Buy!!!
I think we all have them, the buyers that are convinced that the market is going down another 10%... hhhm, I've been working with a couple on and off for a year. The three homes they liked, they finally got to right offers on, all went into bidding wars, they didn't get any of them. They all sold for exactly what I valued them out at.. but noooo they want to pay $50K less to cover the downside of the market. They will be kicking themselves. But you can lead a horse to water -- ya can't make them drink!
I really like Patty's idea of the bumper stickers that say, "It's ONLY A Buyers Market If You ACTUALLY Buy!!!"
No one has a crystal ball, but we DO know that now is a VERY good time to buy!