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Overcoming the "I am hearing that housing prices are still dropping and will continue for some time" objection with buyers.

Posted by Michelle Marlahan on October 28, 2010 at 12:00pm

I have been hearing more and more objections from my buyers about purchasing a home TODAY because they keep hearing that the market is going to decline further, so they don't want to be in a negative equity situation. In addition, they have heard that there is going to be a "mad rush" of foreclosure properties soon, so maybe they should wait...

I wanted to start this discussion in hopes that we can all help each other handle this objection so we can all be more successful!

I have been handling it this way; Well, Mr. Buyer that may happen, however, even if you waited to purchase a home that was 5% lower in price, you may end up paying more if the interest rates increase. They are bound to increase in the near future, so do you want to take that chance?

Just some thoughts and I would love to hear your opinions...

Tags: buyers, foreclosures, market
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Comments

  • John Shipstead November 4, 2010 at 5:10pm
    I have the same type of mortgage discussion and really get to the Core of "why are they buying anyway?" If it is just the right home for them and schools, or fixer, or views, or commute, or shopping or transportation etc... you can get them to buy. People always buy on emotion... everytime. (well, ok some investors might not, but mostly they do too) You have to get to their emotions of what they want and when find it, you need to get them totally into that great aspects of that property and how it will work out.
    Of course, we are talking motivated buyers. But you should be doing an inteverview with your buyers on the first or second meeting to make sure they don't waste your time.
  • Jose Rivas (DGRA) CDPE, SFR October 29, 2010 at 4:53am
    I usually tell them that also interest at the lowest ever and that is most likely that they will go up next year because of the economy and the fact that banks are making more profit and that usually leads to interest rates to go up. so I do the scenario of a $100,000 house today at 4.35% interest will give them a monthly payment of $497.82 monthly payment.
    Now a projected depreciation of 6% in the next 6 months will have a house for sale at $94,000 at a projected 5% interest will give a monthly payment of $504.61. over 30year is a additional $2,444.400 that they will save if they purchase today. rather than wait next year.
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