Buyer Myths!

BUYER MYTHS...

 

There are many buyer myths circulating the Real Estate World.  Here are just a few!

 

1.    The market has not hit bottom; wait to buy...No one can say for certain when the market hits bottom or when it tops out however what we can tell you is the market can change very quickly.  May be hard to believe in this type of market but some things to consider are an influx of relocations from different companies such as Pfizer, interest rates rising at a steady rate, home mortgages relaxing some of the stringent regulations.  When this occurs you can bet that we will move right into a Seller's Market.  My opinion...this particular area has more than likely hit bottom although there may be some fluxation from time to time we will probably move into a Seller's Market and I believe it will be a quick transformation when it occurs.

 

2.    Interest rates will go lower...I don't think so, in fact yesterday interest rates moved up.  They will continue to move up and I'll tell you why.  The government is trying to stimulate the housing market.  Remember the housing market affects lots of different businesses such as home supply stores, contractors, appraisers, Realtors, Home Inspectors, Title Companies, The State Revenue.  The government wants this market to move.  What better way to get buyers off the fence then to continually raise interest rates in an effort to let them know these 4% rates will not be here for long.

 

3.    Sellers are willing to make deals, they have no choice in this market...Not every Seller is in a situation to have to sell.  In fact we have not really seen any more bank owned properties then during a good Seller's Market.  They always exist.  The only reason we are seeing more short sales is because the term is now catching on.  There were many people who simply did not sell because they owed too much on their property.  Now they can get out of the property with a short sale.  Of course there are GREAT prices right now.  Do your homework.  If you truly love the house you want to purchase check the comparables, be sure to work with an experienced Realtor and make a reasonable offer.

 

4.  The Shadow Market is right around the corner...The Shadow Market is a term used to describe homes that have been foreclosed on that the bank is holding in order not to flood the marketplace.  I can assure you that although there are a few homes that are foreclosed on do not get fooled by the media.  Remember the media reports on the entire country as a whole.  There are pocket areas, which are growing at this time, that are not going to experience a surge in foreclosed homes.  We are one of those markets.  It's great for buyers to hear from the media that there are going to be thousands of homes at great prices coming their way but do you want the truth about your area or do you want to dream?  Prices are VERY low right now, they are not going to remain that way.

 

5.    It is too difficult to obtain mortgage lending...While its true that it is more difficult to obtain lending as no-doc loans and stated income loans are not available it is not impossible.  You need to be sure to align yourself with a DIRECT LENDER and a Realtor who understands Mortgages and they will be sure to get you through the process smoothly.  There is still 100% financing available without PMI.  It is termed USDA and although the home you are interested in must qualify, many do.  FHA is available with 3.5% down and the rates are still very good.  Although it is more difficult to obtain conventional financing you can obtain FHA and USDA and 60% of the buyers I have experienced this year whether purchasing a $100,000 home or a $400,000 home have utilized these programs.

 

Now is the time to buy.  Do not let this market pass you by, you will be disappointed in the future.  There are many great homes available to you as a buyer and rates are wonderful.  For a complete list of homes available visit www.JenniferDaywalt.remax.com.  If you have any questions regarding purchasing a home contact me at 610-999-7693 or at Sellinghomesjenn@aol.com.  I will also send you a daily list of homes available that match your criteria.  For up to date Real Estate Information follow me at www.facebook.com/JenniferHillDaywalt. 

 

Jennifer Daywalt, Realtor

RE/MAX Results Realty

Licensed in PA since 2001

Top Realtor 2004, 2005, 2006, 2007, 2008, 2009

Author of "Ask the Realtor" in the Phoenix

Phoenixville's Home Town Realtor

610-489-7355 Main Office

610-999-7693 Direct Line

610-482-9623 Direct Fax

 

Follow me on facebook at www.facebook.com/JenniferHillDaywalt