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- xarfox
- Contributions:44
wow... let the flaming begin
everyone is going to say that low rates inflate house prices and when rates raise, the appreciation will decrease or stay flat
the only good time to buy is when its right for you and your family. otherwise you are getting screwed one way or another with either the rate or the price of the house
everyone is going to say that low rates inflate house prices and when rates raise, the appreciation will decrease or stay flat
the only good time to buy is when its right for you and your family. otherwise you are getting screwed one way or another with either the rate or the price of the house
- Linda Strasberg, "L Strasberg"
- Contributions:2315
If the lowest prices and lowest rates in these historic times aren't compelling...what is?
- Barsch Team Serving MD & DC, "Barsch Team"
- Contributions:131
xarfax - I agree with you about the low rates inflating housing prices, but right now that has not occurred as of yet. The best time to buy, IS when it's YOUR time to buy...... but, with interest rates & home prices at a low... couldn't that assist in making TODAY the right time to buy, versus tomorrow?
- Barsch Team Serving MD & DC, "Barsch Team"
- Contributions:131
Linda - Thank you! Won't you be my friend? :)
- Craig1976
- Contributions:69
Most people with good credit and downpayment would probably tell you that prices are too high where they live. Those with bad credit or no savings might say they can't get a loan.
- Lady Chattel
- Contributions:3110
Mortgage rates are at record lows, making this a terrible time to buy a house, but realtors count on the fact that most people don't understand the relation between interest rates and asset values.
Short answer: when money is cheap, assets are overpriced.
Courtesy of Patrick.net:
Long answer: assets like housing and stock are often purchased with borrowed money. The cheaper the borrowed money (the lower the interest rate) the more people borrow, and the higher they drive the asset prices with this borrowed money. The underlying true asset value is no higher, but because people can borrow more, they pay more. The monthly interest payment is the same, but the total debt is higher because the interest rate is lower. This is not a problem until interest rates rise.
When interest rates rise, people can borrow less, so they can pay less for assets, so prices fall. Those who already borrowed at lower rates lose as their assets fall in price.
I will continue to rent and bank the extra savings each month while my owner neighobors cry as their home value continues to fall.......when prices hit the real bottom I will be able to likely pay almost all cash! I am poised to buy, but not at the prices that our gov't keeps helping to prop up.......the US is doing exactly what Japan did....17 years of home price deflation.....
- Barsch Team Serving MD & DC, "Barsch Team"
- Contributions:131
Craig1976 – Thank you for responding. I would love to entertain the person that says "prices are too high". My question to them is well then how much would you like to pay for that? The cost of a home may NEVER be to someone's standards….the price is what a person is willing to pay. Certain neighborhoods in the DC Area have maintained their market values, even in the hardest of times as we go through the "housing crisis." I suppose, it all just depends on where you want to live, and how much YOU want to pay. At the end of the day, the neighborhood or area they are shopping in might not be for them…because the price will never meet their standards.
- Barsch Team Serving MD & DC, "Barsch Team"
- Contributions:131
Lady Chattel – Thanks for your response. I logged onto the website you quoted Patrick.net, and I found their opinion quite interesting. Renting versus owning on a monthly basis, in some cases is less expensive. At some point you have to stop and ask yourself, why am I paying someone else's mortgage? You say that your owner's neighbors are crying as their home values continue to fall, but is your landlord crying because his mortgage is getting paid? At the end of each year as tax time comes around, the value of home ownership is rewarded to each American…..as some have indicated in some of my other blogs that the tax benefit should stop…..the reality is, that it hasn't. In my professional opinion, as an investor for over a decade and a REALTOR for several years…. Low interest rates & low prices = great value. I can see in the long term where prices start to hike up again, because people are buying more and interest rates are low……but if you keep waiting for rock bottom you'll never find it. You know why? Once we hit rock bottom, the train has already left…and many Americans are left "wishing" they would have bought when the market was low.
- SoCal_Engr
- Contributions:5663
Factors that should be included in "right time to buy"...
1. Personal need.
2. Stable income.
3. Sufficient savings and "cushions".
4. Reasonable mortgage (combination of price and rate).
There's no "single compelling reason". Or, for the reasoned buyer, there shouldn't be.
1. Personal need.
2. Stable income.
3. Sufficient savings and "cushions".
4. Reasonable mortgage (combination of price and rate).
There's no "single compelling reason". Or, for the reasoned buyer, there shouldn't be.
- The Red Squirrel
- Contributions:58
At some point you have to stop and ask yourself, why am I paying someone else's mortgage?
When you borrow money from a bank, the interest you pay covers the Ferrari payments for a bank executive.
Why should I pay for someone else's Ferrari?
(To answer the original question, I agree with what socal_engr says above.)
When you borrow money from a bank, the interest you pay covers the Ferrari payments for a bank executive.
Why should I pay for someone else's Ferrari?
(To answer the original question, I agree with what socal_engr says above.)
When will buyers realize that when the interest rates go up, their buying power goes DOWN...
- Barsch Team Serving MD & DC, "Barsch Team"
- Contributions:131
socal_engr - With those things in place, yes it does make for a perfect storm. Sometimes, certain factors help dictate the time line. Thanks for offering your opinion.
The Red Squirrel - Why should you pay or someone else's Ferrari? If it means having a place to call my own and personal benefit, so be it. I'll tell you what....since the age of 19, I have owned real estate. Does this make me wiser then the rest? Probably not. However, it is always my strongest advice to my clients, family & friends to invest in themseleves then into others. Everyone's situation dictates whether they can buy or rent, but it is foolish to say that you will rent just because you don't want to borrow money and pay the "Ferrari payments for a bank executive." I'd rather pay for someone else's car then someone else's house.
The Red Squirrel - Why should you pay or someone else's Ferrari? If it means having a place to call my own and personal benefit, so be it. I'll tell you what....since the age of 19, I have owned real estate. Does this make me wiser then the rest? Probably not. However, it is always my strongest advice to my clients, family & friends to invest in themseleves then into others. Everyone's situation dictates whether they can buy or rent, but it is foolish to say that you will rent just because you don't want to borrow money and pay the "Ferrari payments for a bank executive." I'd rather pay for someone else's car then someone else's house.
- The Red Squirrel
- Contributions:58
I'd rather pay for someone else's car than someone else's house.
My big question is why .... why is it fine for someone to make a profit by providing you with a useful service in the first case, but completely unreasonable in the second case?
There is value in renting. You get maintenance-free housing coupled with flexibility. It's not right for every situation, but it is right for some. If you know will need to move or upgrade within five years, or your job is unstable, you're better off renting.
My big grievance is the use of emotional appeal to goad potential buyers into buying now. This is an appeal to their sense of fairness (why should someone else make money off of me?) and it has no place in a rational discussion about housing.
My big question is why .... why is it fine for someone to make a profit by providing you with a useful service in the first case, but completely unreasonable in the second case?
There is value in renting. You get maintenance-free housing coupled with flexibility. It's not right for every situation, but it is right for some. If you know will need to move or upgrade within five years, or your job is unstable, you're better off renting.
My big grievance is the use of emotional appeal to goad potential buyers into buying now. This is an appeal to their sense of fairness (why should someone else make money off of me?) and it has no place in a rational discussion about housing.
- Barsch Team Serving MD & DC, "Barsch Team"
- Contributions:131
Team Benya - You're correct. It makes the perfect storm with interest rates being at the lowest point ever, and arguably the housing market hitting the lowest point that the DC area is going to see.
The Red Squirrel - You're playing two sides of the table, just take a moment and re-read what you are writing. On one note you're saying "why is it fine for someone to make a profit by providing you with a useful service" and on the other note you're saying "there is value in renting." I can't argue with you that there is a value in owning and there is a value in renting.
The best part of living in the USA is that you don't have to pay for "services" you don't want. If you see value in renting, and you see it as the perfect setting for your lifestyle...then I give you hats off. However, you can't argue that just because someone chooses to buy, that it is the worst investment in Gods creation. In fact, I can sit down with you and go head to head for hours about how buying real estate is best investment one could make....better then stocks, better then 401.
Just hitting on one of your last comments about "why should someone else make money off of me?" What are you paying your landlord with monopoly money? In fact....I will go one step further and say NOT ONLY are you paying your landlords mortgage...but you in fact are paying for the fancy car that his lender owns too. We can go in circles all day long, but at the end of the day what makes me good at what I do is telling it how it is and showing the benefits to what I sell. You still don't trust me do you?
The Red Squirrel - You're playing two sides of the table, just take a moment and re-read what you are writing. On one note you're saying "why is it fine for someone to make a profit by providing you with a useful service" and on the other note you're saying "there is value in renting." I can't argue with you that there is a value in owning and there is a value in renting.
The best part of living in the USA is that you don't have to pay for "services" you don't want. If you see value in renting, and you see it as the perfect setting for your lifestyle...then I give you hats off. However, you can't argue that just because someone chooses to buy, that it is the worst investment in Gods creation. In fact, I can sit down with you and go head to head for hours about how buying real estate is best investment one could make....better then stocks, better then 401.
Just hitting on one of your last comments about "why should someone else make money off of me?" What are you paying your landlord with monopoly money? In fact....I will go one step further and say NOT ONLY are you paying your landlords mortgage...but you in fact are paying for the fancy car that his lender owns too. We can go in circles all day long, but at the end of the day what makes me good at what I do is telling it how it is and showing the benefits to what I sell. You still don't trust me do you?
- SoCal_Engr
- Contributions:5663
"When will buyers realize that when the interest rates go up, their buying power goes DOWN..."
That's the beauty of an open/free market. When rates go up, buying power goes down, and supply will either need to adapt/adjust or stay on the sideline.
When we first purchased, rates were in double-digits, and that didn't stop us from buying, especially since rates in the 5-6 range were a "thing of the past". It just meant that the housing prices had to adapt to the situation (i.e., we weren't the only people getting double-digit rates, and our income was representative of the market). As rates got better, housing prices went up.
The heartache here is when realtors focus on one part of the overall equation to emphasize that "NOW is the TIME to BUY!!!" - in variations of font and number of exclamation marks. By cherry picking the factor to emphasize, it is always "the time to buy". For some, it will never be the case. For others, it is the combination of factors, not just one driving factor.
That's the beauty of an open/free market. When rates go up, buying power goes down, and supply will either need to adapt/adjust or stay on the sideline.
When we first purchased, rates were in double-digits, and that didn't stop us from buying, especially since rates in the 5-6 range were a "thing of the past". It just meant that the housing prices had to adapt to the situation (i.e., we weren't the only people getting double-digit rates, and our income was representative of the market). As rates got better, housing prices went up.
The heartache here is when realtors focus on one part of the overall equation to emphasize that "NOW is the TIME to BUY!!!" - in variations of font and number of exclamation marks. By cherry picking the factor to emphasize, it is always "the time to buy". For some, it will never be the case. For others, it is the combination of factors, not just one driving factor.
- shapiroamg
- Contributions:3058
amen socal. Its the time to buy when the house is right for you and your situation. If rates are low when that property is available, then you hit gold.
- Barsch Team Serving MD & DC, "Barsch Team"
- Contributions:131
socal_engr - Information is only valuable to someone who finds value in it. If you are not in the market to buy, and won't be in the market to buy, then why get so upset about it? As you mentioned, not too long ago rates were in the double digits......and they came down quite a bit over the years to be what we call often as "historical lows."
The real "overall equation" is sometimes dictated by what the market is doing. Let's look at some facts here...as mentioned in my original post the rates hit the lowest point ever in late June....that is a big plus to buyers. Prices are not at an all-time low, but they are considerably low in comparison to the early 2000's market when prices skyrocketed. As a REALTOR, it is my job to educate the public...who might not realize that they are missing out on a great time to buy. Perhaps, they wanted to wait another year or two....and see value in buying now. The value? Save a lot of money on interest rates and save a lot of money on a lot of house!
I cannot disagree with you, if it is not your time to buy...then it isn't. At the end of the day I did my job as a REALTOR to inform you on TODAY'S market.
- SoCal_Engr
- Contributions:5663
@Stan - What you really did is cherry pick a few of the factors to make an emotional appeal to potential buyers. It's just a variant of the "if you don't act now, you'll miss out forever" line. Are there some good deals to be had? Sure. But, the best deal ever on a steak dinner is not much of a deal if you're a vegetarian. Some people aren't in a position to buy, irrespective of the state of the market.
"If you are not in the market to buy, and won't be in the market to buy, then why get so upset about it?"
I'm not uber-upset, and it really doesn't matter if I'm in the market to buy or not. I just don't appreciate the hype spewed to influence buyers - who unfortunately are often uninformed, irrational, and easily swayed by the hype (e.g. all the people buying to get a piece of the $8K giveaway).
And, for what it's worth, it seems way to likely that I (or my children, or their children...) will have to pay for the failings of people who make bad decisions in the RE market. Realtors, on the other hand, will take their commission and move on to the next mark/client.
"If you are not in the market to buy, and won't be in the market to buy, then why get so upset about it?"
I'm not uber-upset, and it really doesn't matter if I'm in the market to buy or not. I just don't appreciate the hype spewed to influence buyers - who unfortunately are often uninformed, irrational, and easily swayed by the hype (e.g. all the people buying to get a piece of the $8K giveaway).
And, for what it's worth, it seems way to likely that I (or my children, or their children...) will have to pay for the failings of people who make bad decisions in the RE market. Realtors, on the other hand, will take their commission and move on to the next mark/client.
- hpvanc
- Contributions:2570
I'll weigh in. I don't appreciate any salesman making emotional appeals and apply any psychology they can think of to get a buyer to buy whatever it is they have in inventory today.
@Stan
You have just provided the epitome of why I my advise is to take all advise with a grain of salt, and any advise coming from a commissioned salesman, even after it has been verified with a freighter load of salt.
You are cherry picking your points, putting as much emotional and psychological spin as possible and ignoring the big picture. A majority of agents on here seem to want to be viewed as professionals, with other agents and sometimes those same agents themselves coming on here and offering pure sales pitches, and trying to wear down the objections down without acknowledging them. How they ever expect to be acknowledged as professionals is beyond comprehension, when they pick single point and sell, sell, sell based on them without even acknowledging the full picture.
Perhaps you should post this in home selling, it is clear that you will do whatever it takes to make the sale regardless of the full picture. You will not be able to work with, let alone represent an informed/intelligent buyer.
Now that I have established my position would you like me to start arguing your points?
@Stan
You have just provided the epitome of why I my advise is to take all advise with a grain of salt, and any advise coming from a commissioned salesman, even after it has been verified with a freighter load of salt.
You are cherry picking your points, putting as much emotional and psychological spin as possible and ignoring the big picture. A majority of agents on here seem to want to be viewed as professionals, with other agents and sometimes those same agents themselves coming on here and offering pure sales pitches, and trying to wear down the objections down without acknowledging them. How they ever expect to be acknowledged as professionals is beyond comprehension, when they pick single point and sell, sell, sell based on them without even acknowledging the full picture.
Perhaps you should post this in home selling, it is clear that you will do whatever it takes to make the sale regardless of the full picture. You will not be able to work with, let alone represent an informed/intelligent buyer.
Now that I have established my position would you like me to start arguing your points?
- The Red Squirrel
- Contributions:58
Stan, I appreciate you responding to my post, though I'm not sure why you missed my whole point. I was clear and concise, as I usually am.
I'm not taking a stance that's pro- or anti- buying a house. I'll buy one when the time is right, which for me means better job security.
As a REALTOR, it is my job to educate the public...who might not realize that they are missing out on a great time to buy.
I do have some real-estate experience though. I loaned 8 grand to my brother to help him cover his down payment for a new house until his old one sold. That was about 6 years ago in Florida, so you can see where I'm going with this. He hasn't talked to me since then, because he's so ashamed about not being able to pay me back. I do talk to his wife from time to time. Why didn't his real estate agent educate him about what was going to happen to the housing market?
Why didn't NAR warn us about the bubble and its impending collapse? Where was the education? Someone could have stopped the madness. Think of the trillions of dollars lost, the millions of families devastated, the hundreds of square miles of forest and farm torn up to build houses for which there was never enough money or buyers. This was a tremendous misallocation of our natural resources.
Meanwhile, NAR has been educating us with "It's a great time to buy" consistently for the last decade, maybe longer.
The fact is, your job is not to educate the public about the economy, nor to advise about investments. It's to find the best and quickest match between a seller's and a buyer's desires. I can accept that when I walk into a car dealership, the dealer's real goal is to sell a car even if he is friendly and informative and appears to be looking out for my interests. I don't think any less of him for it, and I won't for you either, but please at least admit it.
I'm not taking a stance that's pro- or anti- buying a house. I'll buy one when the time is right, which for me means better job security.
As a REALTOR, it is my job to educate the public...who might not realize that they are missing out on a great time to buy.
I do have some real-estate experience though. I loaned 8 grand to my brother to help him cover his down payment for a new house until his old one sold. That was about 6 years ago in Florida, so you can see where I'm going with this. He hasn't talked to me since then, because he's so ashamed about not being able to pay me back. I do talk to his wife from time to time. Why didn't his real estate agent educate him about what was going to happen to the housing market?
Why didn't NAR warn us about the bubble and its impending collapse? Where was the education? Someone could have stopped the madness. Think of the trillions of dollars lost, the millions of families devastated, the hundreds of square miles of forest and farm torn up to build houses for which there was never enough money or buyers. This was a tremendous misallocation of our natural resources.
Meanwhile, NAR has been educating us with "It's a great time to buy" consistently for the last decade, maybe longer.
The fact is, your job is not to educate the public about the economy, nor to advise about investments. It's to find the best and quickest match between a seller's and a buyer's desires. I can accept that when I walk into a car dealership, the dealer's real goal is to sell a car even if he is friendly and informative and appears to be looking out for my interests. I don't think any less of him for it, and I won't for you either, but please at least admit it.
- Barsch Team Serving MD & DC, "Barsch Team"
- Contributions:131
hpvanc - Thanks for writing your opinion. Have a fantastic day.
The Red Squirrel - I hope in time when job security works out for you, that you are able to find the right home for your needs. I'm very sorry to hear about your brother purchasing the property in Florida, and how he is dealing with it now. I have a lot of friends (and some who are REALTORS) who have purchased places down in Florida, and are regretful. The honest truth be told, no one ...not even the best of the best can predict the future.
Why didn't NAR educate about the impending collapse? That's the million dollar question, that I can't answer. The fact that the President of the US at the time wouldn't/couldn't tell the public what was going on, how could an association do so?
I have to disagree with your last two paragraphs. NAR, real estate companies, and REALTORS have said for a long time "It's a great time to buy".....but it is with cause....and at specific times, reasons are given to WHY it is a great time. My job? It is to educate.....and the roll of a REALTOR is a hub of many tasks to purchasing a home/condo. There are more parts to this career then just finding a match.
There are times and have been times when I have told clients plain and simple that they needed to rent for another year or two to put themselves in a better position to buy. In fact, I've even assisted them with putting together a game plan so that they won't fail at their purchase.
If you're asking me, personally to admit I am just in it for the "quickest match" and not worried about their interest...I have to say you are 100% incorrect.......actually 2000% incorrect.
- sunnyview
- Contributions:25127
"As a REALTOR, it is my job to educate the public"
Really? I have one question. What were you telling the public in 2006? Was it a great time to buy then too? I am not a psychic, but I was pleading with friends, family and strangers on this board not buy or to sell if they could before the bubble burst. It is not comforting to know that the "experts" suffered from blindness in markets that have been as hard hit as Florida. Realtors are not financial advisors, not economists, not market analysts. I do not expect them to tell the future, but since they obviously can't I do expect them to show a bit of professional restraint when it comes to spinning numbers for their own benefit.
I get frustrated when I see agents appealing to emotion while avoiding the discussion of the direction of the market and the true cost of ownership. I believe in homeownership as a vehicle for investment over time. I value it for other reasons also, but I would never suggest that people base their decision to buy a house on my soft, emotional reasoning when it involves a significant amount of money. Buying should be looked at as an investment first and they should be given the numbers and info to make a solid decision. I believe in educating buyers and letting them decide what is best for them. You won't get kicked out of your home for painting the wall the wrong shade or eggplant, but you will get booted for buying a house that you can't afford or one that drops in value to the point of being unsellable for a period of years. I think the goal should be long term happy owners not quicky shotgun transactions.
Really? I have one question. What were you telling the public in 2006? Was it a great time to buy then too? I am not a psychic, but I was pleading with friends, family and strangers on this board not buy or to sell if they could before the bubble burst. It is not comforting to know that the "experts" suffered from blindness in markets that have been as hard hit as Florida. Realtors are not financial advisors, not economists, not market analysts. I do not expect them to tell the future, but since they obviously can't I do expect them to show a bit of professional restraint when it comes to spinning numbers for their own benefit.
I get frustrated when I see agents appealing to emotion while avoiding the discussion of the direction of the market and the true cost of ownership. I believe in homeownership as a vehicle for investment over time. I value it for other reasons also, but I would never suggest that people base their decision to buy a house on my soft, emotional reasoning when it involves a significant amount of money. Buying should be looked at as an investment first and they should be given the numbers and info to make a solid decision. I believe in educating buyers and letting them decide what is best for them. You won't get kicked out of your home for painting the wall the wrong shade or eggplant, but you will get booted for buying a house that you can't afford or one that drops in value to the point of being unsellable for a period of years. I think the goal should be long term happy owners not quicky shotgun transactions.
- klarek the realist
- Contributions:7044
"When will buyers realize that when the interest rates go up, their buying power goes DOWN... "
When will stupid agents learn that when buying power decreases, home prices drop..........................
When will stupid agents learn that when buying power decreases, home prices drop..........................
- NTETS, "Mr Caveat"
- Contributions:6436
I have a lot of friends (and some who are REALTORS) who have purchased places down in Florida, and are regretful. The honest truth be told,no one ...not even the best of the best can predict the future.
i strongly disagree. now, if somebody says "tomorrow you will be hit by a bus" or "the dow will hit 12,000 in 3 weeks, mark my words" you and i can both agree that that prediction may as well be written on toilet paper because there is no way to collect that kind of data. that isn't to say that it couldn't be predicted, just that you would need instantaneous access to vast amounts of data that you can't get as a member of the public (or in the case of the former, as a limited being)
on the other hand how to value a hard asset is not the same. there are things that people all agree on. for instance:
1) prices are sticky. houses aren't subject to a perfect free market, they arent traded dynamically, therefore we can conclude that past sales relate to future ones. home prices will not bounce around, except when the market is being interfered with.
2) all houses value is subject to disposable income within a community. prices cannot exceed what consumers can pay reasonably on a monthly basis or the loan will go bad.
3) there is a competing service called renting where, if the price of ownership becomes too high, people will self-regulate out of the market
4) whenever the cable networks start agreeing on the next get-rich quick scheme (i.e. day trading software or flip that house) run.
5) if it seems too good to be true, it probably is.
houses in 2004-6 were increasing 10%+ per year. several people on this forum announced it. several people saw it coming years early. several people on the forum had proof. REAs just called us crazy and tried to discredit us even though it was obvious they knew nothing about market analysis.
i strongly disagree. now, if somebody says "tomorrow you will be hit by a bus" or "the dow will hit 12,000 in 3 weeks, mark my words" you and i can both agree that that prediction may as well be written on toilet paper because there is no way to collect that kind of data. that isn't to say that it couldn't be predicted, just that you would need instantaneous access to vast amounts of data that you can't get as a member of the public (or in the case of the former, as a limited being)
on the other hand how to value a hard asset is not the same. there are things that people all agree on. for instance:
1) prices are sticky. houses aren't subject to a perfect free market, they arent traded dynamically, therefore we can conclude that past sales relate to future ones. home prices will not bounce around, except when the market is being interfered with.
2) all houses value is subject to disposable income within a community. prices cannot exceed what consumers can pay reasonably on a monthly basis or the loan will go bad.
3) there is a competing service called renting where, if the price of ownership becomes too high, people will self-regulate out of the market
4) whenever the cable networks start agreeing on the next get-rich quick scheme (i.e. day trading software or flip that house) run.
5) if it seems too good to be true, it probably is.
houses in 2004-6 were increasing 10%+ per year. several people on this forum announced it. several people saw it coming years early. several people on the forum had proof. REAs just called us crazy and tried to discredit us even though it was obvious they knew nothing about market analysis.
- Don Ready
- Contributions:1
Low interest rates along with a depressed market makes for a great time to buy.
- sunnyview
- Contributions:25127
Where's the bucket? I think that last one pushed my lunch over the edge. Is a little intelligent conversation about the market too much to ask? I mean there are only so many NAR talking points that one girl can be expected to swallow in a day.
- Barsch Team Serving MD & DC, "Barsch Team"
- Contributions:131
sunnyview - What advice did I give in 2006? Buy. Why did I give that advice? I purchased two properties, and sold one that year...and I wouldn't give advice that I wouldn't take myself. 2006 was a great year here in the DC area for real estate, the slow down occurred in late 2006 into 2007. What is my advice here in 2010? If you're in a position to buy, you would be crazy not to. I could sit here and outline over a hundred reasons why, and without even "spinning numbers."
I agree with you about the goal should be "long term happy owners." Funny enough though, many of my clients are two or three years in, and then out. Shame on them, right? Not really, they have a goal that they want to reach and lifestyles change as the years go by. Has this market slowed down the ability to do such a quick turn around? Absolutely.
By the way just to touch very briefly on you talking about getting kicked out for not being able to afford the home. I was never a fan of 100% financing, nor was I a fan of 80/20. Don't even get me started on "stated income." Those are things that failed us as society.
I agree with you about the goal should be "long term happy owners." Funny enough though, many of my clients are two or three years in, and then out. Shame on them, right? Not really, they have a goal that they want to reach and lifestyles change as the years go by. Has this market slowed down the ability to do such a quick turn around? Absolutely.
By the way just to touch very briefly on you talking about getting kicked out for not being able to afford the home. I was never a fan of 100% financing, nor was I a fan of 80/20. Don't even get me started on "stated income." Those are things that failed us as society.
- klarek the realist
- Contributions:7044
"As a REALTOR, it is my job to educate the public...who might not realize that they are missing out on a great time to buy. "
Such a selfless salesman, society owes you a debt of gratitude.
Such a selfless salesman, society owes you a debt of gratitude.
- sunnyview
- Contributions:25127
Look unless you gave the advice to sell and were calling your clients to suggest they sell before the knife fell, your advice to buy turned out to be bad for many clients with the benefit of hindsight. I sure do not hold you personally responsible for client decisions, but not giving clients an exit strategy is a problem if they got in based on your advice and then couldn't get out when you were radio silent. I guess the real problem is that I saw agent after agent outright lie to buyers who knew more than they were telling. Please understand I am not saying that YOU lied to your buyers, but many agents did. The buyers bought every word right down to leveraging themselves into places that are pulling them under right now. I begged anyone who would listen to sell. They didn't, but my conscience is clear as I look at their a once 625K value now sitting at 310K. They heard my advice and reasoning, but in the end they made their own choice. C'est la vie.
Flipping and trying to trading up on bubble equity has inherent risks. Buyers rely heavily on their agents for information, but many agents never discuss downside. I see that as a problem when agents position themselves as "advisors". If your client wants to blow their money and credit on a lifestyle house purchase, fine by me as long as they are making an independent decision to put the gun in their mouth without a professional egging them on with spun facts. Agents are not financial advisors but many do not hold the line between agent and advisor. I have a problem with that. If all agents did was sell, promote and discuss real estate, I would be much happier and I think it would be a more honest process.
Flipping and trying to trading up on bubble equity has inherent risks. Buyers rely heavily on their agents for information, but many agents never discuss downside. I see that as a problem when agents position themselves as "advisors". If your client wants to blow their money and credit on a lifestyle house purchase, fine by me as long as they are making an independent decision to put the gun in their mouth without a professional egging them on with spun facts. Agents are not financial advisors but many do not hold the line between agent and advisor. I have a problem with that. If all agents did was sell, promote and discuss real estate, I would be much happier and I think it would be a more honest process.
- klarek the realist
- Contributions:7044
"2006 was a great year here in the DC area for real estate, the slow down occurred in late 2006 into 2007."
Slow down? Price dropped anywhere from 30% to 60% around here in that time period. Not only is that a bad time to buy, but historically it's never happened before, thereby making it the worst time to buy in history. Of course you told people to buy. There is NEVER a time you would tell people not to buy.
Slow down? Price dropped anywhere from 30% to 60% around here in that time period. Not only is that a bad time to buy, but historically it's never happened before, thereby making it the worst time to buy in history. Of course you told people to buy. There is NEVER a time you would tell people not to buy.
Does the lowest interest rates in HISTORY affect your decision to buy now?
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- 0.0/5.0
- (no reviews)
Contributions:131So, the $8,000 first time home buyer tax credit is gone. Now what? You missed the buzzard, and what motivation do you have to run out and buy a property, right?
Well, did you know that in late June interest rates hit the lowest point in HISTORY? For a 30 year fixed rate mortgage, you're looking at mid-4%'s if not lower today! Oh, but we are in the "worst housing market."
Worst housing market = Best time to get the best deals
Lowest interest rates in history = Your chance to save hundreds of dollars on your monthly mortgage
Let me ask you, does the low interest rates and low housing cost give you enough motivation to get out and purchase a property? If not, what else do you need to make it happen? Higher interest rates, higher housing costs?
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