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Great video and love the message, Bill! thank you! Will share on my fan page and twitter!
Awesome! I love your blog posts!!!! They keep me going and help me to find perspective!!! Thank you for sharing your wisdom and knowledge! You have an amazing gift and I am blessed to know you!
Thanks Jen – just sharing what I’m learning. Keep making a difference!
Thanks for the kind comments Chik – and the re-posts!
Bill, I think your message to buyers to buy now is negated by your advice to sellers. If prices are going to fall further then any buyer who can, should wait. If I buy now with the increased amounts of down payments being required, won’t I see my investment go down almost immediately? You can’t have it both ways. It can’t be a great buyers market and a great sellers market. The only answer to buyers in this market is the message that should have been spoken during the “good times.” Real estate is a long term investment. Don’t try to time your purchase like a stock because you can’t get out as quickly. Long term investors in real estate have never lost. That’s the message. Take advantage of the lower interest rates and use those rates to reduce principal with additional monthly contributions. Long term baby, long term!
To Jim Casey- You actually can have it both ways and here’s why. If you are a buyer and you get a fair market deal today at 5.00%, then you are better off than the guy who who thought he was so smart to wait wait 6 months and ends up paying 6.00% on his mortgage. Let’s say the market dropped another 9% for this guy, he still lost because he’s now “long term” paying a higher rate. You with me? Good!
Now if you are a seller, in a home that does not fit your needs (I know all about that living in a 1,300 sq ft condo with a screaming baby) and I think values will drop another 5% in my market, then I need to sell now! Get out of the house that does not fit my needs and into the new house at 5.00%. If I wait, rates go up, values could drop another 5%.
Practical logic works every time…
Thanks for your comment Jim. You position seems to presuppose that for a seller to win, a buyer has to lose. I don’t see it that way. If a buyer finds their dream home with 5% interest rates, and is in it for the long run… they win. For their situation.
My effort was to to help people look past the knee-jerk reaction of the tax credits ending and look at the long term that you mention.
Great points Coach! Im getting this out TODAY!!! Thanks
Worth your weight in GOLD, Bill!!
Great information and excellent for responses to sellers who think it is better to wait…thank you for the dialogue
Great message…it is all about mindset!!! Personnally I am glad to see the government stop some of the spending on these programs. With housing values down across the country and the rates we have now…are you kidding me…these two factors alone will stimulate activity!!!!
Go forward…be excited and make things happen!
Bill, Great post!! Thank you!!
Bill, Some very good points especially relating to 2003 values and interest rates being lower today than they were 7 years ago.
From the sellers side…if the seller isn’t moving up or doesn’t truly need to sell (in my market) many are better to sit tight and not list or sell. However, the opportunity for moving up in price in our local market is really beneficial from an affordability and instant equity position.
The beautiful thing we have in our favor today is that our MLS is essentially our crystal ball of where the values once were and this can really help buyers and sellers see where the market has been and what is possible again one day in the future.
Bill, Great message and video! The key to making this point clear and obvious with buyers is to use a Total Cost Analysis to dollarize the value of buying now vs. waiting until rates go up 18 months from now
Right on Dave – couldn’t agree more. Thanks for all that you have, and continue to do, to make that easier for our industry!
Great message Bill. Love the videos. Keep’em coming!
I was pondering the suggestion being made to get homes listed now before the foreclosure storm arrives. However, wouldn’t this also create a large suppy of listings, but may not create the demand? Especially if buyers are hearing the foreclosure storm is coming and prices will go lower. So if I am a Realtor in Phoenix, should I be looking to increase supply or should I look to increase demand? Demand, right? Here is how I wiould do it. Research and find all the areas of the country like mine, Cedar Falls Ia. I would find agents and lenders to team up with that would scour their databases to find clients with substantial home equity. Invite those clients to a Real Estate Investment seminar and educate them about the huge long term opportunities in the down real estate markets. In the last three I have spoken to 8 clients with over $200k in home equity each. I had this conversation with 3 of them and 1 is flying to Florida today to check out properties.
If anyone is interested in teaming up on this concept, I am all ears.
It is my pleasure
Awesome post. Too many individuals in our related industries feed on the negative which can lead momentum into a downward spiral. Your message can hopefully help many snap out of it and challenge the negative.
Thanks for the refreshing slap in the face!