Get off the Fence! Many agents are experiencing the “I think I’ll wait a little longer” syndrome when working with Buyers.More than ever, it is your job to be prepared with the reasons why a Buyer should “get off the fence” and purchase a home in today’s market.Here are a couple of helpful selling points: A. Today’s FHA loans offer attractive qualifying terms that are scheduled to tighten up in 2009.Right now, FHA loan limits in our area have been raised over $100,000 to a maximum loan limit of $428,750, dramatically increasing the buying power of most buyers using the program. In addition, FHA is one of the only programs that still allows for approvals that are not subject to a credit scoring model.This is also set to change in 2009, tightening FHA qualification guidelines even further. Today’s Buyers get the benefit of the current 3% down payment and MIP in the amount of 2.25% of the loan amount. Both are set to increase in the near future, requiring more money out of pocket and/or a higher monthly payment for the same purchase made now vs. later.(for your particular area, https://entp.hud.gov/idapp/html/hicostlook.cfm) B. The $7500 tax credit won’t last for long.Yes, the tax credit comes in the form of a 0% interest loan that must be paid back at approximately $500 per year.However, this should be more than counteracted by the taxable mortgage interest write off on a new home...something a Buyer wouldn’t have had if they hadn’t purchased! C.The Metropolitan closed sales report recently posted by realtor.org shows that the average sales price of a single family property in the Hampton Roads marketplace is down by 4.4% over 1 year ago.However, it is up by 1% over the last quarter of this year!The average condominium is actually slightly up in sales price from the same time last year.Even if today’s buyers do experience a 4-5% decrease (as often reported by the media) in prices over the next year, once again, the tax savings from their mortgage interestwrite off should help to counteract, possibly even exceed, the benefit of that price reduction! (For your area http://www.realtor.org/wps/wcm/connect/874598004ad3d9c59b84fb1b407934f1/research__MSAPrice081408.pdf?MOD=AJPERES&CACHEID=874598004ad3d9c59b84fb1b407934f1) D. Who has a more vested interest in the future value of homes in a neighborhood than the next buyer for that neighborhood? When a buyer considers the logic of this statement, they may be more apt take a negotiating position that focuses on seller concessions such as closing cost assistance, appliances, pay off of debt, etc., vs a substantial price reduction.Taking currents in many markets into consideration, what is the true value of waiting? If the next buyer in a neighborhood sees a pattern of declining value, what do you think their offer will be?Unless someone stops the cycle, it won’t matter when you buy. You house is bound to be worth less once the next home sells! Help your buyer understand that is BENEFITS THEM to STOP THE INSANITY! E. The loss in buying power caused by a 1% increase in interest rates is normally much greater than the gain a buyer would experience by waiting for further reductions in price.It wouldn’t take much for interest rates, currently in the high 5%’s, to move into the mid to high 6% range.That 1% increase in interest rates, based on a $250,000 sales price range, would reduce a Buyer’s purchasing power by approximately $25,000 in order to maintain the same monthly payment.Again, this is MUCH greater than any price reductions we have seen in most price ranges during similar periods of time   F. Seller funded down payment programs have already disappeared as of October 2008. Though legislation has been introduced to revisit the use of these programs, there is no sign that Congress is willing to reconsider their position.Today’s buyers now have one less program at their disposal, one that could have been the difference between the option of buying or not buying .How many more “Pro-Buyer” programs might disappear while Buyer’s continue to wait on the sidelines? G. When compared to the same time frame in ’06 and ’07, listing inventory YTD on the Southside has dropped for the last 5 months in a row. Since sales have not also proportionately increased, this can be interpreted as a sign that Sellers are more apt to take their properties off the market than accept very low, and often unreasonable, offers.Though “stealing” a piece of property may happen from time to time, statistics tend to indicated that this is the exception and not the rule.Should listing inventory continue to drop, basic supply and demand principles will kick in sooner or later, which could weaken the strength of the negotiating position Buyer’s now have H.The National Association of Home Builders issues a Builder Confidence Index, currently at 14, the lowest ratings since the Index began.  To put this into perspective, a rating below 50 indicates that those polled in the building industry believe the conditions for building and selling residential homes is poor.  This has translated into one of the best markets in many years for a good buy on a new home.  And, if you’re currently working with a Buyer who is looking at a new home, subject to selling their present home, waiting just doesn’t make sense. What better way to make up for the concessions they may have to make to sell their home than to gain it back (and more) on their new home purchase.  This is especially true if they are moving up to a larger or more expensive property. Attractive interest rates are an added bonus!