MOB psyche drives me bonkers. A few years ago we had hoards of people playing dog pile to buy high price real estate and today with the inventory vast and the rates low and prices very very low I hear the these phrases all the time1) Its a bad market to buy
2) I think I'll wait til the market gets better
3) Buy - are you crazy.
4) Nothing good for what I can spend
I tell people the golden rule - Don't what you can't afford - that will get you in trouble everytime. Read up a bit on the differant mortage products and educate yourself on what they are about so you can make better decisons. Odds are if you can barley make a Option Arm payment or a teaser rate payment you'll be toast come adujtment day.
What is also killing me is people letting the banks do what they will - fight for your home. The banks don't want it back - the banks accrue cost taking your home back - pick up the phone and call the bank and you may find yourself able to reduce the original (yes the original price) purchase price - or set new terms. If the only reason your credit is shot is due to ARMs adjusting you have a lot on your side.
Guess what market is booming currently - the rental markets - guess who is renting - those that think this is a bad market to buy. I wonder if this "Bad Market To Buy" mentality is really a good excuse to stay dormat in ones activity to pursue some financial security for ones family?
Its so easy to do nothing - not fighting to keep your house - I mean really fighting not just a call to the switch board operator - Its easy to lay blame about the current market conditons on one group or the other and then stand back and take no action.
This MOB mentality inspired me to write the wall street journal -
It is a great time to buy if you can afford to buy isn’t? Most of the public thinks it’s a bad time to buy – perhaps we don’t see enough – IT’S A GOOD TIME TO BUY - signs. I can’t get over how here in greater Sacramento people piled on each other to pay for over valued homes but today’s consensus is it’s a bad market and thus a bad time to buy. What are your thoughts? This is a good opportunity in most price ranges – get into something you can afford very comfortably and in 10 to 15 years you’ll be on your way to a dream home.
I noticed your article made no mention of Auctions as an alternative (rather quick way) to sell in a down market. Roughly 4 weeks ago I was in Bakersfield, CA. amd this lady paid 335K for a home that was listed for months @ 280K then on the other hand I’ve seen the reverse happen.
What do you make of the home buyer psyche? Why do you think the public view is everything is bad vs. it’s a great time to buy?
Michael
Response:
Thanks Michael. I will share your question with June Fletcher, who answers such questions for her weekly column, House Talk. I think your question would make an excellent topic for one of her columns.
Thank you for your interest in RealEstateJournal.com.
Sincerely,
Lauren Baier Kim_____________________
Senior Editor
The Wall Street Journal Online Network
609.520.7277
lauren.kim@wsj.com
P.O. Box 300
Princeton, NJ 08543-0300
