Steve Bucher

Every financial planner will tell you to BUY ALL the time and your stock price will even its self out over time, but what about real estate? How do you buy real estate if you think values may be lower tomorrow? The answer is found in the 3 reasons people buy real estate. People buy real estate as 1) a "hedge against inflation", 2) as an opportunity to capitalize on value appreciation and 3) personal use. Notice that only one reason to buy is tied to value. So here is how we bring attention to another reason to buy.

Personal Use: The idea that the buyer will obtain personal utility or satisfaction from a purchase.

In a fast and furious market, buyers tend to purchase whatever is available. They will say things like "I dont like this, I don't like this, I don't like this", but when the real estate agent says that there are already multiple bids...the buyer jumps to bid despite the house's faults. This leads to some serious soul searching and likely a move a few years later.

Slow Market Advantage - In a slow market, buyers will have greater inventory to search through, minimal pressure to find what they want and competative price. Slow markets are about people finding their dream home. This needs to be driven home with the public. This is their opportunity to get it right and buy their dream house.

Cash Flow purchasing - The home they hate...the "good enough" house...the "status quo" home will likely have to sell prior to completing the sale on a new home. Likely, the new home will cost more than the old home and the client will have some fears about not getting their money out. Fear of losing money and not getting the maximum value for his house is a major obstacle. BUT we have done this to ourselves...How many times have you said " a house is a great investment". Well, a house is no longer a great investment. A house is a castle which meets families needs, protects, builds memories and projects a person's identity. So get the old thinking about investment out of your consciousness. Homes don't make you money, they provide for your families needs, wants and desires.

Fact: the market you sell in is the market you buy in. Cash flow purchasing is looking at the monthly payment the buyer can afford and matching them to a product. Sale of house aside...what can the buyer afford. The key is not the price you pay for something...its whether you can afford to buy what you want today. A house is worth spending money and time on, to get exactly what you want because of how many hours you will spend in it. The perfect house is worth the cost today due to how happy you will be in it. Inflation make the perfect house unreachable tomorrow...so buy today. Take advantage of market conditions!

In conclusion, this marketing strategy ties into the dissatisfaction many buyers have in their current house. Listen to what they hate about their home and don't allow the buyer to repeat the mistake of settling for second best.

Good luck out there

Steve Bucher, Mortgage Consultant
416 - 500 Notre Dame Drive
Kamloops BC V2C 6T6
(250) 682 6077
www.mortgagebuilder.ca

Wow, I guess I am in a little shock reading some of the dismal blogs from the realtors south of the border. However, I love to see how some realtors have turned lemons into lemonaide and made the most of it. For those in the south, West coast Canadian real estate markets are still strong, incomes are strong and although inventories are rising, there are no signs of a housing price plunge here.

I am a mortgage broker and watch rates slowly falling 4.79% for a 5 yr fixed...yes thats all we get my American friends and watching bargain shoppers head out in droves. I do know that Canadian stats showed Canadians had over 8.8 billion in their saving accounts and it is only a matter of time before it burns a hole in their pocket. In Kamloops we are breaking records for building permits. Optimism is rising with the increasing temperature. SO, things are roughly business as usual, but people who have to sell are noticing only bargain shoppers in the market. Mortgage brokers are noticing more re-fis, debt consolidation and switches to take advantage of better rates. I wonder if the waves of recession are heading north, or if all we will see is the ripples. What do you think?

For those in the midst of the storm, keep you heads up...nothing last forever! Even doom and gloom.

Congrats on the new leadership

Steve

In today's market in Kamloops, a monthly rent payment would often pay for much better accomodation if the renter chose to actually own. The low rates mean lower mortgage payments, increased buying power and reduced implications for debt servicing - the death of many a deal.

With prices of housing falling and house inventory increasing, it is time to contact your clients who currently rent and advise them to look at their buying options. With the CMHC flexdown program, down payment does not have to be the deal breaker for the client.

Now, not every client is ready to buy, for a number of reasons, but there is no reason they can't increase their readiness today. There are simple and easy steps all buyers can take which can increase their options when it comes to borrowing money. But it takes a plan and proper education to make this happen. Can you name 5 things your buyers can do to increase their credit score? I can. I would love a chance to educate your clients and ready them to work with you.

Best Regards

Steve Bucher, Mortgage Consultant

Invis Kamloops www.mortgagebuilder.ca