Here is the essence of the fallout for buyers and sellers of real estate. Buyers who are today “sitting on their hands” waiting for the market to bottom out may also find their buying power drastically reduced by the prevailing credit markets. Sellers who have their homes priced too high will find themselves chasing the market to ever decreasing prices.
The call to action is NOW for the waiting buyer! While prices may be falling further, be sure to get into the game while you have comfortable credit vehicles available to you. Call your agent and loan officer today!
The realization and confirmation of a declining price real estate market is that the mortgage money market is protecting itself going forward by greatly tightened qualifying standards for all loans. All borrowers will find it more difficult to get a loan, even at higher rates, than just 6 months ago. That translates to a buyer population with reduced ability to pay for homes. A favorite loan type for the self-employed and investors, people who have difficulty documenting their incomes, but do actually have the cash to make their payments is the “stated income” loan. This loan will be more difficult to get and will be available for a smaller portion of the total sales price of the home.
NOW is time to get it done. See my recent posts about buying and selling right in a buyer’s market. Get you agent to show you the best buys. Fall in love with one, in “like” with 2 others and negotiate for a price that represents “the bottom” for you! You will get a home you will be happy with, you will get a great price and you will finance it in a way that is comfortable for you. Price your home for sale aggressively and make it easy to show and easy to buy. Homes are selling, let yours be one of them.
