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Even though the economic indicators look really good now, a lot of folks just aren't feeling it. That leads to indecision with a big purchase.
I have seen people unsure about their job security with many large firms laying off long time employees.
my guess would be they are worried about job security....can't blame them!!!
What a great question to ask your next buyer that doesn't buy. Don't ASSUME they are afraid. Ask them if they are afraid. Ask them what would assuage their fears. They might tell you a lower price. Write them up at a price that doesn't scare them. Show them a house in a price range that they can buy without fear. Ask your buyers to answer this question for you.
We are emerging from a 7 year recession. People have changed their spending habits. There is definitely some fear out there.
Most want something w/o wishing to part their savings. One person works at Apple with lots of stock option does not want to part his free stocks. He chose to put 3% down and use a collateral (Heloc) as balance of 20% and a 80% mortgage. That triggers underwriter to scrutinize his obligations in relation to home value. It causes home taking longer to get fundings. In Silicon Valley most people are well compensated those with < 20% can not find people to represent them this year even they want to buy.
Economy, the state of the world. Right now I'm not seeing any fear buyers are out in full force and ready to buy.
Why the fear?
What did they observe in 2008 through 2011? They observed well intended people betrayed by the banks they used. These 'today buyers' know there is much that can happen to them that they have no control over when they become obligated to a lender, insurance company and the city, and the county and the state in regards to home ownership. The fear is well founded.
Perhaps they watched as someone they know was ruined.
I address this by having some knowledge regarding how money works and even more about budgets and saving.
Basically, don't fly too close to the sun, have an exit strategy, have a economic safety net. All of which can be accomplished by choosing the home at the right price and in the right location.
That security allows them to take their eyes off their fear for a moment and begin to see the long term benefits that lie ahead.
When all the sailor can see is the rocks along the shore it very hard for the sailor to appreciate the beach beyond.
Very often with first time buyers they don't know how to set expectations because they are doing soemthing for the first time. They get paralyzed in thinking that the next one will be better so they have a fear of committment.
They may be afraid they will not have money for emergencies if they use their savings to buy a house.
Good morning Sandra. Fear is a strong motivator for good and bad, I spend a lot of time with folks when I handle a pre-qualification to address the fear and there is nothing wrong with having it.
It takes a while for buyers to save up for the down payment and closing costs and hard to part with this. Understandable, but we need to guide them through this process to show the WORTH of buying a home versus renting.
might be buyers that got burn putting to much money before the crash, or other people telling them about it. cant blame the either .thanks have a great day
perhaps some may be concerned of their employment? Haven't seen this, but hopefully their lender will walk them through the numbers and help them prepare for their purchase.
I think buyers are afraid of many things...buying the wrong home, losing money, not getting a good enough deal, getting in over their heads. Let's face it, it's a big decision!!! I jknow I forget that but buying a home is a large purchase. Everyone knows someone who lost money in the downturn, it's scary!
This is human nature.
Most buyer still fear seeing their parents or them losing a home in the economic down turn. They want to put the minumin down on a home so they feel they do not have a lot of money to lose. I consult with buyers an discuss down payments and the lender I have discusses this also.
Our economy is extremely volatile. Gone are the days when a person could plan to spend their entire working life at the same company. Hence, there is a basic insecurity built into our lives.
I have found that problem only with single women, who are on their own.