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The Fear Factor for Buyers

"There's no better time to buy a single family home than right now, the affordability factor has never been better."

Please help me; I seem to be a bit confused and frustrated.

What’s the problem Tim? Well Doc; I’ve been selling real estate since 1984 when mortgage interest rates were at 12% and buyers were buying homes even though it was costing them a ridiculous amount of money just to borrow $100,000 or $1,028 per month to be exact.

Today a buyer can borrow $228,000 at 3.5% with the same monthly payment compared to borrowing $100,000 at 12%, that’s an increase in their purchasing power by $128,000. Ok so what’s your point Tim? My point Doc is this, we’ve had the largest down-turn in real estate values ever combined with the lowest interest rates ever and buyers still appear to be very comfortable just sitting on the fence, why? It’s the fear factor Tim, and what fear factor are you referring to Doc?

The fear factor is this; buyers are afraid if they buy a home today there’s a very good chance it will be worth far less than a year from now and that has a psychological effect on their decision making. So the buyers fear factor is actually mind set related? Yes, that’s exactly right Tim. Ok Doc in your opinion what do you think it will take to change the buyer’s frame of mind or mind set thus removing the fear factor from the equation in their decision to purchase a home? Positive reinforcement from the powers that be would be a good start.

Can you elaborate? Certainly, what I mean is this; for years now buyers have been overwhelmed with negative reinforcement coming from all different sources; the media, economists, financial institutions, population in general and yes even the real estate community that home values are heading south deep into the abyss never to return. This is a big reason why buyers are reluctant to get off the fence.

So what’s the solution Doc? The solution is simple; it’s all about the real estate community providing the knowledge needed, the positive reinforcement warranted and the resolve to move onward so that buyer’s once again will see the vision, fulfill the dreams and understand the value proposition that home ownership in America is and always will be one of the safest and rewarding long term investments an individual or family can make. Remember there is no better time to buy a home than right now, the affordability factor has never been better. It’s time for you to invest and, “Own a Piece of America.”

Timothy Waller

Coldwell Banker Residential Brokerage

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

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