5 Reasons for Buyers to Get off the Fence !
In the Philadelphia real estate market, I am seeing some substantial opportunity for buyers to procure great deals as well as have teriffic opportunity before them now. Thus, if you are one of those "on the fence" buyers, it is time to cross over and accomplish your goal ! Here are 5 reasons why:
1. Mortgage Rates - Mortgage rates are at 2008 lows ! The mortgage officer in my office has been screaming up and down the hallway about this is the time to lock. A buyer that we have been working with just locked into a 30 year fixed rate of 5.25 ! Are you kidding me ? This gives buyer incredible purchasing power in addition to being a great deal. Yes, rates may trend lower but there is no guarantee for how long.
2. Inventory - There is a lot to choose from ! Take advantage of it while you can as that gives the buyer more negotiating leverage. In the Philadelphia real estate market, I have not seen too many new listings pop up in areas such as Old City or Northern Liberties so as soon as the inventory starts to decline a little bit, the more difficult it is going to be to negotiate that better deal for the buyer !
3. Inspections - Similar to number 2 above, this is the time where sellers are more willing to negotiate for repairs or offer financial consideration or concessions for inspection items. When the market turns, there will be many more sellers not willing to do anything. Of course if a seller agrees to sell a property for a great price, there might not be too much room for repairs as it crosses their pain threshold.
4. Time of Year - Many sellers believe that nothing happens between Thanksgiving and New Years. I constantly get asked if it is just going to be dead during this time. My answer to this is to see my post on Black Friday - we are jamming right now. In any event, because of this, once again a seller that has their property on the market now will probably be more willing to negotiate with the fear that there may be no activity until spring !
5. First time homebuyer tax credit of $7,500 - see our prior post on this tax credit. Buyers have until mid-year to close on a property and take advantage of this incentive. Yes, it is an interest free loan but how often does that ever happen ?
Also, because of the above, I have already seen in our own office a sharp pickup in activity which will lead to our next blog post concerning the "pulse of the market" .
As an agent, I would recommend to communicate this week to all your buyer clients that are "waiting" these benefits to act sooner than later. They should be highly appreciative of the communication, especially the updates in the mortgage market !
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The Somers - Philadelphia Real Estate
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What is the price of rent vs a mortgage payment in your area? That may be just another reason for them to hop off that fence!!
Christopher & Stephanie-Wow! 5 great reasons for buyers to get off the fence, rates are dropping, the time is now. Thanks for the great post.
I'm glad you pointed these out because they are all excellent reasons!
Christopher & Stephanie - Savvy folks who are in the market to buy Real Estate and qualify are in an ideal time right now. All the points you mentioned are excellent incentives and the facts of the current atmosphere.
You've given the best reasons for buyers to get off that fence! I've gotten more buyer calls in the past few days since the mortgage rates have dropped and have been in contact with a couple of buyers that have been sitting on the fence about the great buying opportunity that's out there right now.
With lower prices and low interest rates, now is the best time to buy a home. What are the buyers waiting for? Thanks for writing such a positive article.
Christopher and Stephanie:
I just want to comment I one thing. December is the best month of the year for a buyer. Especially if th house is vacant. No one once to keep a home through the winter. Well maybe not just one. Rates are on there way right now to great lows. Soon (January), the buyers will be incentive to buy. We all know what will be next. So buy now before they are knocking down the doors.:)
Richard
OMG! I was just starting a poste entitled - Are You Sitting on the Fence? I am not kidding. Can I still do it? Yours is so good!
Renee - Great point ! That will be added in the future. And of the course the benefits of building equity and the mortgage interest tax deduction.
Joe - thanks ! The time is now ! : )
Tony and Libby - yes, it is important for buyers to be reminded or even communicated to these reasons.
Jason - So true. I think the other buyers that are on the fence that do not move foward in the next 6 mos or so will have regret that they did not.
Donna - Glad you agree and am glad some of your buyers are motivated right now as a result of the mortgage rate opportunity !
Kay - You are welcome ! I think many are starting to realize the opportunity... the pulse of the market is starting to beat a little louder !
Richard - so true ! If anyone can predict the future, you can ! Sounds like he have some good things in front of us as far as opportunity is concerned !
These are great reasons for buyers to get off the fence and become home owners. THere is nothing more rewarding to your financial future.
Chris and Stephanie,
And why are they still sitting? You hit all the ways for them to move.....I hope they take the advise.