Realtors: Which Is It?

[barbk]

Originally Posted by chesapeakesim

To all realtors,

I have seen your ads that state that now is the perfect time to buy a home and that people had better buy before prices go up.

Then at the same time I read articles saying that the NAR is pushing to extend the housing tax credit cause without it the market will tank and house prices will plummet.

So which is it? If the housing market is strong enough for you to recommend buying, it should not matter if the government provides a stimulus. But if the market is so down that without a government hand out prices will fall through the roof, then you should not be recommending anyone to buy at this point.

Can someone please explain how you can support both positions at once?

It is a good time to buy because prices are negotiable, inventory is plentiful( but less than a few months ago), and if you can get $8000 as a first time buyer, and now $6500 for current homeowners( who have owned 5 out of the past 8 years)so much the better If you have good credit, and not overextending yourself with debt, owning a home certainly beats paying someone else's mortgage. Mortgage rates are still low and prices are negotiable. Real estate is all about supply and demand. As more people modify and refinance, short sales and foreclosures sell, and people take advantage of the tax credit, there will be less inventory. Less inventory and more demand will drive prices up. Will that be in 2 months? 10 months? or 2 years? Nobody really knows. In some areas, buyers have already experienced less negotiating power.

If you are uncomfortable or unable to buy now, and believe that the only reason the tax credit was given was to avoid " collapse"and believe confusing information in the news, than don't buy now. Wait until the tax credit expires, wait until the interest rate goes up, wait until inventories are lower, wait until prices go up. Wait for everything to be 100% perfect.

For those who have always wanted to own a home, trade-up, need to downsize, getting married, getting divorced, now is a good time to buy, not just because of the tax credit, but because many conditions ( maybe not all) are favorable for buyers. Now is a good time to stop putting your life on hold and be paralyzed by fear of what will or will not be.

[emilybh]

Originally Posted by barbk

It is a good time to buy because prices are negotiable, inventory is plentiful( but less than a few months ago), and if you can get $8000 as a first time buyer, and now $6500 for current homeowners( who have owned 5 out of the past 8 years)so much the better If you have good credit, and not overextending yourself with debt, owning a home certainly beats paying someone else's mortgage. Mortgage rates are still low and prices are negotiable. Real estate is all about supply and demand. As more people modify and refinance, short sales and foreclosures sell, and people take advantage of the tax credit, there will be less inventory. Less inventory and more demand will drive prices up. Will that be in 2 months? 10 months? or 2 years? Nobody really knows. In some areas, buyers have already experienced less negotiating power.

If you are uncomfortable or unable to buy now, and believe that the only reason the tax credit was given was to avoid " collapse"and believe confusing information in the news, than don't buy now. Wait until the tax credit expires, wait until the interest rate goes up, wait until inventories are lower, wait until prices go up. Wait for everything to be 100% perfect.

For those who have always wanted to own a home, trade-up, need to downsize, getting married, getting divorced, now is a good time to buy, not just because of the tax credit, but because many conditions ( maybe not all) are favorable for buyers. Now is a good time to stop putting your life on hold and be paralyzed by fear of what will or will not be.

I hear and can see(at least in my area) that there is a HUGE pipeline of foreclosures (REOS) that have yet to be released onto the market. When they are, it should bring prices down further. We are in a declining market still. If you are buying now, I'd make sure your offer is based on lower market values than what today's are. Certainly don't base your offer on what someone paid for a similar property 6 months ago. I'd think in this market if your final purchase price isn't at least 25% or more below the asking price, you'd be overpaying for the property-- especially if it has been on the market for 9 months or more or an older property that needs updating. For lender owned properties I'd think, especially if you are paying cash you should be able to get the property for 40 to 60 percent less than the asking price. Buyers have to be willing to make offers and offend sellers (and find agents who are good negotiators). These kinds of deals are being realized by some. All you have to do is go to a site like Trulia.com or Zillow.com and look at the recent sales.

[middle-aged mom]

Originally Posted by emilybh

I'd think in this market if your final purchase price isn't at least 25% or more below the asking price, you'd be overpaying for the property-- especially if it has been on the market for 9 months or more or an older property that needs updating.

For lender owned properties I'd think, especially if you are paying cash you should be able to get the property for 40 to 60 percent less than the asking price.

I see properties sell quickly, darn near the asking price, all the time. I also see some properties sell for 35% less than the original asking price, too.

As for bank-owned properties, many sell for more than the asking price, under a multiple bid situation.

The variable here is the asking price which can be spot on, or way off from current market trends, within a given area. Anyone expecting 25% -60% off any asking price, is not likely to buy anything.

[rjrcm]

Originally Posted by emilybh

...For lender owned properties I'd think, especially if you are paying cash you should be able to get the property for 40 to 60 percent less than the asking price. ...

Agree with MAM. Good luck finding that discount in AZ. Most banks are already pricing below market value and getting multiple offers over asking. Asking for another 40-60% off is a sure way not to buy anything.