4 Top Myths about Today's Real Estate Market

The Real Estate Market today not only triggers questions from both home buyers and sellers, but from everyone who is concerned with today's economy. Yesterday for instance when I was at lunch, the conversation always seems to lead towards firing questions about the real estate market. People want to know when I think the market is going to turn around. So, I reach into my bag of tricks and pull out the special real estate crystal ball that NOBODY else has!!!! (Sorry about the sarcasm). 

My last lunch encounter inspired me to write this blog. I love it when the common person tries to tell me about the very business that I am in every day and night of the week, and then goes off to their full-time job doing whatever it is they do. I use to take it very personal, but now I laugh and just say, "Hey I have an idea. Go into your office, quit your job, get your license and lets team up. You have so much passion and experience in real estate I could use a good partner. What do you say?" You should see their look. I will spare you the commentary that takes place and just we go back to our lunch. 

So, here are........
 
THE TOP 4 MYTHS ABOUT TODAY'S REAL ESTATE MARKET

1. THE BANKS ARE NOT LOANING MONEY. This is not entirely true. Banks are loaning money. The majority of the mortgages are FHA loans which do have higher standards than a conventional loan but offer many advantages such as only 3.5% down and the seller can pay the closing costs. Banks are much less careless with loaning money these days and require the borrower to prove their ability to repay the loan. 

2. I AM GOING TO WAIT TO BUY BECAUSE PRICES ARE STILL DROPPING. I've yet to see anybody TRULY time the bottom of the market and I doubt it's going to happen now. Once a bottom is established it's actually already on the upturn. Buying needs to be the RIGHT TIME for you and YOUR PARTICULAR SITUATION. You are buying a HOME and a long term investment. Unless you are going to be selling within three-to-five years after buying the home, stop over thinking prices dropping and take action on a property that fits your needs NOW! 

Many area's have stabilized and some have even started to increase in value ever so slightly. This is a state by state and area by area question though. Contact a local real estate professional to help you understand your specific real estate market. 

3. SHORT SALES ARE TOO DIFFICULT TO GET SOLD This is one of the biggest myths. Everyone hears the horror stories about short sales taking six months to a year, but no one hears about the short sale that only took a few weeks with the right real estate professional helping a homeowner through the process. The truth is, a short sale only goes as well as the listing agent is expereinced in the listing, negotiating and selling of short sales. Banks are easier to work with these days, they are more open to getting short sales sold. The banks however have no tolerance for incomplete short sale packages or agents who price homes way below market value to attract more buyers. Choosing a local agent who is experienced or who specializes in handling short sale transactions can make a big difference from a successful closing to a FORECLOSURE! 

4. BUYING A BANK OWNED HOME IS TOO RISKY. Purchasing a bank owned home can create an amazing opportunity for the right buyer. A buyer can limit their risk by using a buyer broker who is experienced with bank owned homes to guide them through a non-traditional process. Not all bank owned homes make sense for certain buyers. Some homes may need too much work and are only great buys for the cash buyer. Some banks will repair the major items for funding purposes and you can get a bank owned home that is ready to move-in and still be able tio get it at a great price.

If you are looking to get back into the real estate market, then call The JWP Realty Group today to see if now is the right time for your situation. 

Jeff Petsche, Broker

951-316-6400

How to find the right home without wasting hours searching Internet sites.

If you are in the market for a new home, let me ask you one question? How many hours do you spend searching for your next home while sitting behind your computer? Is it 5 hours a week? Is it 10 hours a week? Is it 20+ hours a week? Now ask yourself, "how has that been going for me?". My guess is if you are reading this blog it's not going well.

As a real estate Broker, business coach, agent and client consultant, I find that more and more buyers today are depending on the Internet to find their next home because it's easy and there is a level of anonymity that buyers seek. Sitting behind a computer is SAFE. Sitting behind a computer is CONVENIENT. Sitting behind a computer allows you to look at 10's of 100's of homes without ever leaving the comfort of your home or workplace. However, in the end all you are doing is LOOKING and in some cases, you are looking at old data. 

Of all the homes you have researched online, how many were already SOLD when you called on them? How many of the homes were already in escrow with another buyer when you called on them? How many of you reading this right now can honestly say you are making progress with finding your next home by spending hours a day/week on the Internet? If you are then kudos to you and I hope you are working with a professional who is going to look out for your best interest. If you are not having success in this area, then STOP IT! 

Unless you like having the part-time job of searching for homes on the Internet, look for a more simple way. Hey, I got an idea...call a real estate professional and have him or her set you up on a personalized priority search for the RIGHT HOME and the TRULY AVAILABLE HOME that fits YOUR WANTS/NEEDS and CRITERIA. I don't care if you call us or somebody else to do this for you. I'm just trying to help you out by saving you VALUABLE HOURS on the Internet, just to find out that you are looking at the wrong home for you. 

I want you to take out a piece of paper and pen or pencil right now...Go ahead-I'll wait.............

Good. Now I want you to write down what you would do with your day or week if you had an extra 5, 10, 15 or more hours of time freed up. Write it down now and then come back to the blog in a few minutes. 

Okay you're back..Great. 

What did you come up with? How is your life going to look with that extra time to do things that matter most to you? Heck, I did the same exercise and I came up with some great stuff: 

• More time with my daughters
• More time with my family and friends
• More time to go mountain bike riding
• More time to go rock climbing
• More time to work with great clients and help them with their real estate needs
• More time to blog and help people like you
• More time to mastermind with business minded people
• More time to travel

If you really are in the market for buying a home, wouldn't it be great to PARTNER with a real estate professional who is going to save you time and in the end money (if you really think about it) by notifying you when the right home comes on the market? STOP sitting behind the computer on the Internet hitting the SEARCH button repeatedly and really getting nothing accomplished. 

So, if you are serious about buying, go find a real estate professional today that you can trust, build a relationship with and start working as a TEAM to find you the right house. I promise you will thank me later. I'd rather see you spending time doing the things you love and leave the house hunting to the people who are in the market EVERYDAY...

Word of CAUTION...And this is CRUCIAL: Ready? 

WORK WITH A REAL ESTATE PROFESSIONAL WHO WORKS HIS/HER BUSINESS FULL-TIME. Would you want a part-time doctor operating on you? Would you want a part-time attorney handling an important court case for you? You get the idea. There is nothing more upsetting to me then when I hear of a buyer or seller who is working with a part-time real estate professional (that's a loose term if they are part-time) and certain critical tasks are unable to get done in a timely manner because the agent is working their full-time job someplace else...Hmmmmm That would worry me as a buyer or seller. 

Well I hope you found this blog helpful and informative. But if you didn't, that's okay because it's impossible to reach everybody in the audience. 

Good luck with your home buying experience and feel free to contact us at any time. 

Happy house hunting! 

Jeff 

Home Buying: Most Affordable in Decades

Click Here For Home Affordability Article
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