Thread: Why are people buying right now?

Originally Posted by lefthandedwriter

It's been a few years since I last bought/sold. So I want to get a feel for the pulse of the market since the economy's slid a little further.

BESIDES price (I already know I've fighting an uphill battle there , what are the three biggest factors that are influencing buyers right now? Are we talking particular features? Certain concessions? Location?

What are the three hot-buttons that will make or break a sale, in your opinion?

Everybody needs shelter, thats the simple answer. People die, people get transferred, people lose jobs, people get married, people get divorced, people have kids etc..

The hot buttons are the same: Price, location and terms. The 7500 tax credit does not hurt either.

There are two groups that I am working with primarily. The first group are investors. They are obviously motivated by price, but really, they're looking at monthly cashflow (lots, not just a little), and potential equity when the market turns around. The second group are first time home buyers. The minimal barrier (3.5% down) and the $8000 tax credit is the largest force driving their decision to buy.

Originally Posted by stevetrang

The minimal barrier (3.5% down) and the $8000 tax credit is the largest force driving their decision to buy.

Seems like this would inspire the decision to *enter* the market now...but not help determine *which* house they buy. I'm actually looking for any particular trends in specific features buyers are looking for.

What kind of trends do you have in mind? My buyers today are the same as before, they want the best house for the best price. There are no specific features that set the one they buy apart from the ones they don't. The one they end up buying just offer more value for the money. For example, it just may need less work because it was one of the few foreclosures that wasn't destroyed by the previous owners on their way out.

First of all the tax credit for first time home buyer is $8500 for 2009 and not $7500 as previously stated. This is use by many people in the business to "convince" people to buy. Also the positive news in the media about how everything is improving and what a great job Obama has done in his first 100 days are pushing people to think they should buy now.

Regardless, people will have to live somewhere and if they can afford it they will buy. And it's about school, shopping, work, the look of the house, price, etc.

Nothing beats good news though, so keep an eye out for another spin of the news by the media machine.

I stand corrected on the tax credit.

Trends:

I would say as green as possible. Solar, Super Insulated, recycled materials, water reclamation any thing like that and maybe near commuter bike paths - a West Coast thing?

The great room concept is very appealing to the young crowd. Large, honeymoon master suite's always catches young and old alike. 9' + ceilings are appealing.

Price, Location, and Condition.

They want it all. And some are actually getting it!

I'm up to my eyeballs in buyers right now. A great time to be in the market of buying.

I am buying now because,at least in my area.

It is cheaper to pay PITI than rent.
Banks are unloading their inventory.
Interest rates are low.
Tax credit.

1. Interest rates are at historical lows. This obviously means lower payments on homes, as well as better cash flow possiblities for real estate investors. Here in Minnesota, our team works with alot of real estate investors.

2. Inventory of homes for sale on the MLS are still high. Though multiple offers have becoming very common place in our market at lower price points, the higher price point homes still have a nice inventory level. This means more choices for buyers.

3. Everything is on sale. With so many bank owned properties out there, prices are low and buyers are able to get great deals on homes for sale.