I have been having the same conversation with many people almost daily.  The same question comes up over and over again -

“Should I buy now or will the prices still keep going down?”

Yeah.  Maybe. Who knows? Maybe your crystal ball is more clear than mine is.  All I can say is that the prices are low, so are interest rates (historically); there are many, many deals to be had, foreclosures, short sales, seller concessions, etc… and if you want to buy a home – now is a great time to do it.  Period. Who was it that said, “It is always a good time to buy real estate.”? I forget – I am sure someone will let me know! But now is for sure.

Yes, prices will continue to drop as more short sales become foreclosed properties and sellers realize this is not 2005 and they must price appropriately to compete against all the short sales and foreclosures.  Once all of this happens and the extra supply becomes less, then prices will even out – stop dropping.  But that might be a year away. Maybe less, maybe more. Again, my crystal ball is too cloudy today to see that far. 

And we (real estate professionals) should be screaming it from the rooftops.  Obviously we can’t leave it up to the media scare mongers out there.  They are too busy trying to scare the hell out of the general public by telling them there are 5,000 named hurricanes going to happen so go to Home Depot and spend spend spend those checks the Government just sent, we will all be flooding this year, gas will be $10 a gallon soon, all the political candidates are crazy / liars / stupid (depending on who you support and what news channel you watch), global warming will kill us all (because we all know there were no ice ages, dinosaur extinctions or other extreme environmental conditions before humans were on the planet – not that we have been helping…), the 6% commission is etched in stone and Realtors are not worth the money!! Why not tell lawyers, doctors and other licensed professionals to lower their prices?  I mean a 10 minute doctor visit costs a couple hundred bucks?  I dislocated my should a year ago and literally saw a doctor for all of 3 or 4 minutes at the hospital but the doctor charge was $900!!!!  For a couple minutes!!!  Why can’t we negotiate those prices?  He really did nothing anyway for me – the nurses helped a lot but he did nothing. An attorney will charge you $250 – $300 or more for an hour to talk or write up some paperwork.  But Realtors are the major issue in these poor economic times.  I hope you are catching the sarcasm.

I, as a full time professional working in real estate daily, know that now is a great time to buy and I tell everyone that now is the time.  I use the “Blue Light Special” as an example all the time.  I let people know “Now is the Blue Light Special on real estate.”  This helps people relate to “savings” or a “good buy”. Get their minds thinking in the right direction.

Then of course there is the “I want to hold off on buying until the market starts to turn!”  This to me is CRAZY!! It is turning NOW!! We are in the turn – wake up and get with it people.  Get in the “here and now” not the “what was” or the “I think will be”.

I just don’t understand why people view real estate purchases differently from other investments.  It simply makes no sense. Yes it can be the largest purchase you make but the approach should be the same – buy low – sell high!!!

Why was this same person willing to buy a place when the market was on fire?  They would have been buying the property at its high price point.  Now they can buy the same one for far less. Far far less with less out of pocket due to willing sellers, short sales and foreclosures!  HELLO?? Now YOU can go buy that same house that was purchased 2 or 3 years ago for $500K or $600K.  That’s right you can buy that same house – probably in a short sale or from the bank out of foreclosure – for far less.  I have been helping buyers purchase homes that sold for $500K or $600K a few years ago for $300K’s and low $400K’s now.  And these are NOT short sales – these are motivated sellers who are willing to make a deal and probably pay off most or all of your closing costs.  So why is it not a good time to buy again? 

I always use this example for my buyers / investors who seem reluctant to buy: If I were your stock broker and I called you and told you that a certain company’s stock was at an all time high and you should buy buy buy, what would you do?  I would hope you would fire my butt right then and there, ask me why I did not let you know about this company when the stock was at its low point and then go find a stock broker who actually brings you DEALS!!!  Buy low, hold and sell high, right?  Well, now is the perfect opportunity to buy low, hold and sell high. Same strategy.  Why does this not “click” with people?

I guess the point of this post is that we (those of us in teh real estate, mortgage, lending professions) should all be spreading the word to everyone we know and through every outlet we can find.  I think NAR should be doing major advertising campaigns on-line, in print, the radio and on television directed at buyers and buyers only right now. Of course they could hit on the facts about Realtors and how we help sellers and buyres get better pricing, negotiate rebates, introduce you to licensed and proven inspectors and mortgage professionals and attorneys, guide you through the stressful time of buying or selling, help you to understand the contracts, provide and explain addendums such as mold, termites, make sure all paperwork is completed correctly and all funds accounted for, price a property correctly to move, show you current market conditions, etc… but if they did major efforts to attract buyers and change the mindset out there and let everyone know it is buying time then the sellers would be coming to us to utilize our professional services in droves.  They would want the help and realize that buyers are going to have a professional representing them through negotiations and contracts - and they should have one too. 

Seriously, why are there not major major efforts going on right now?  Maybe there are but I have not seen any.  Other than the ”clean up” actions they try to do after 60 minutes or 20/20 runs a piece ripping Realtors to shreds.  Why wait?  Why can’t they do something on their own to educate the public instead of trying to band aid every negative story that comes out about our profession and the market? 

Why are NAR and our local associations not PROACTIVE instead of REACTIVE all the time?? Seriously, let’s get PROACTIVE and MAKE SOME CHANGES instead of waiting for the media to bash our profession and our market and then react?

It is not enough to sit around and wait for the market to turn around with the attitude “Oh, this market will change.  Its just a cycle and we are at a low point in the cycle.” Man do I hate hearing that – thanks Captain Obvious!!  That is the laziest, no action taking response I have ever heard.  Lay down and let the market run you over?  No way. Let’s make it change.  We cannot sit back and wait for the media or anyone else to spread the word for us (my fellow professionals).  We must start at the grassroots level and work up from there.  And if it is hitting a low point then why would you not buy – if you were in the position to do so. 

Maybe then NAR and the others who are “looking out for Realtors” will start a major, major push to turn things around for the real estate market. 

In closing I would say that if you are a renter with a decent job, decent credit and a little cash in the bank or have a relative who would like to help you get into your first place then you should be seeking out a mortgage professional or calling a Realtor who can direct you to a few for GFE’s (Good Faith Estimates – these are FREE) to see what kind of programs you qualify for.  First time home buyers assistance, Government Grants – there are a slew of programs out there to help you out.

Or, maybe you are a person or couple who have been in the same house for a few years.  You bought it right (maybe in 2003 or before) at a decent price and did not refi, refi, refi it and pull out all of your equity or get yourself upside down.  Maybe you have been at your same job for a few years and you both make a decent income.  Maybe you just had a baby or a second one and want to upgrade to a bigger home.  Now is a great time to do that!!  Especially in places like Palm Beach County with the drastic price reductions and the portability of homestead.  Again, if you are in this scenario you should really be thinking about now as a good time to move forward – to start looking!  And this goes for you professionals, Government workers, teachers, cops, firefighters, nurses – you all should be looking around now if you are currently renting or need more space in your home.

If you would like more info or would like to talk about moving, portability, first time home buyers assistance and programs, buying or investing in real estate, please feel free to contact me at sflreguru@yahoo.com .

Until next time – Happy House Hunting!!