The Time to Buy is NOW
By Pat Riley, President, Chief Operating Officer, Allen Tate Realtors
What’s on your “to do” list that won’t get done today?
Most of us walk around with some kind of priority list, some sense of what we need to do and when we need to do it. Today’s instant technology gives us an easier opportunity to make that call, or return that message, but doesn’t necessarily allow us to focus on our true priorities.
In recent years, buying a home was a priority for many of us. First-time buyers were anxious to settle in; others were quick to move up when the idea of a fourth bedroom, a bonus room, a deck or a more desirable community was considered. Relatives flocked to new cities to be near children and grandchildren; friends enticed friends to move close by. Hard-working employees channeled raises and bonuses into real estate, which steadily appreciated in value.
Today, the market is different, and yesterday’s buyers are “sitting on their hands,” waiting. Buyers are putting off buying because they are paralyzed by fear. And the fear comes from lack of understanding of the market, its challenges, and its opportunities. We fear what we do not understand, and we tend to avoid what we fear.
The economy, the Presidential election, rising gas prices, banking mergers – all have created uncertainty and eroded consumer confidence; we get that. What many would-be buyers don’t understand is that today’s market offers opportunities like never before. Interest rates are the best they’ve been in 25 years. Lenders still have mortgage money to lend, assuming you have the basics of a job, decent credit, and ability to come up with a reasonable down payment of 3 to 5 percent.
Sellers can leverage the equity in their existing home to make a move up. If you reduce your selling price by 10 percent and purchase a new home at the same discount, you’ll realize a net gain of thousands. It’s a matter of keeping it in perspective.
This isn’t a market where you’re going to steal on the sale and also on the buy. It’s not an environment where people who can’t make monthly payments will be handed an adjustable mortgage by unscrupulous lenders. It’s not a time where you’re going to get the price your neighbor got for his home two years ago. And it’s not a time when you are going to sell a house without the assistance of an experienced real estate professional.
If you’re a seller, you need to be willing to price aggressively and do what it takes to sell your home. Neutralize your color scheme. De-clutter. Repair, polish and shine every corner and crevice. Make it memorable. And most importantly, list with us the real estate leader and take our advice early and often.
If you’re a buyer, stop waiting for the bottom. We’ve already been there and we’re working our way back out. Interest rates won’t stay low forever, and even an increase of one percent will give you a significantly higher monthly payment on a home with a lower value. We’re headed there soon. There’s money to lend – a variety of desirable loan programs are still available. Inventory is great and sellers are motivated.
The habit of putting off an experience until the time is right, or the conditions are perfect – will rob you of life’s greatest joys.
If you’ve been thinking, even casually, of buying a home, make it today’s priority. Put it on your “to do” list and start the process. Don’t look back years from now, with regret, saying “I should have … I could have … if only I would have.”
Pat Riley
President/COO
Allen Tate Company
