Peter Holahan

I know that we have all heard that question before. I mean, prices are going to continue to drop, right? I may find a better deal next week, right? So, how do you respond to those questions? As real estate agents who have been in the business for some time, we are now seeing Buyers with the same mentality that Sellers had during the market peak. Everyone is afraid that they will leave some money on the table if they act NOW. Remember hearing these words from your Sellers in 2004, "Let's not respond yet to that full price offer...we may be able to get a bidding war going." In the current environment we have Buyers who are now afraid to put an offer on a home that meets all of their needs and desires because, well, "There are still so many houses to look at, and prices are still dropping. I know I can find a better deal if I just wait." If you are in the market for a home, is there really going to be a better time than now? Can you, Mr. and Mrs. Buyer, assure yourself that you will find a better deal if you just wait a little longer?

Let's look at the big picture before we answer those questions. If you are a first time home buyer, or if you have not owned a home in the previous three years, the U. S. government has a deal for you. They are offering you an $8000, or 10% of the purchase price (whichever is less), Federal Income Tax credit if you purchase your home between January 1, 2009 and November 30, 2009. Need some more incentive? How about a 30 year fixed rate mortgage near 5%, and if you pay 1 point you can get it below 5%. Can you, Mr. and Mrs. Buyer be assured that your new home purchase will actually cost you less money if you wait for that better deal?

This is where it gets dangerous because I'm going to do some math in public! Never a good idea, but we're all friends here, right? Assume a home purchase price of $200,000 with a 20% downpayment and a 30 year fixed mortgage rate of 5.125% ( the rate I was quoted 2/24/09 in Palm Beach County, FL ). You would have a monthly P&I of $871.18 on the $160,000 loan. Now, let's put an extra $8000 towards the down payment, because you know the government is giving it back to you in the form of a tax credit. The monthly P&I drops to $827.62 for a monthly savings of $43.56. Over the life of the mortgage you are saving $15,681.60. You could also use the credit towards improving the home, or anything else you wish. The point is, this is the perfect time to be a buyer of real estate. Don't be the one who looks back and regrets the missed opportunity. We may never see another time like this in our lives. THIS IS THE TIME!

Have you ever asked yourself that question? I know that I have on many occasions. Sure, they have expressed that desire and have signed a listing agreement in order for you to help them reach that goal. But, how many times have you, as a Buyers rep, taken a client to a home only to be greeted by dead plantings in the front of the home and a front door that you might have been afraid to touch? As the Listing Agent for the property it is critical that the seller be made to understand how a little bit of money and a lot of sweat equity needs to be invested in order to help sell their home in the least amount of time for the best price. You know what they say about first impressions? Then why would a home seller leave the front of the house in disarray? By trimming existing live shrubbery and removing the dead plantings, and making sure the front door has a fresh coat of paint, they will be setting the stage for a positive first impression. They could replace an old lockset with a new one for as little as $70. Interior walls needing repair and repainting can be made presentable for less than $50 for an average 15' x 15' room. Cleaning the windows and repairing or just plain removing damaged screens will enhance the "showability" of the home. And, do not ignore the rear of the house. On several recent showings, homes I looked at had an acceptable entrance and interior, but the backyard was littered with trash, the patio was neglected and the patio screening was either missing or hanging loose. None of the areas mentioned above would require a large outlay of cash, but the returns on investment, both monetary and physical, is dramatic.