Ask Lila: Should Buyers Buy?

After I made that post on commonly overlooked tax breaks, I started stumbling around the real estate blogisphere for interesting info for my home buyers. Well, yesterday I happened across an interesting article by the KCM Blog that gave me an idea for a wonderful new feature, starting today on LilaKeimRealEstate. The feature, which will showcase one popular question related to real estate, investment and other related topics, is aptly entitled Ask Lila.

“The First Question You Should Ask Your Listing Agent” by the KCM Crew

What is the most important thing a seller should look for when hiring a real estate agent to sell their house? We are often asked this question. Is it the size of the company they are licensed with? Is it their marketing program? Their years experience in the business? Should you choose the agent who suggests the highest listing price?

There are many things that should be taken into consideration when hiring someone and giving them the responsibility for selling your home. In our opinion, the most important question you can ask a potential listing agent is a simple one:

Do you truly believe that now is a good time to buy a home?

Why should this matter when hiring someone to SELL your home? Buyers are nervous about purchasing right now. They want to know they are making an intelligent choice. We believe, especially in today’s market, you need to hire someone who realizes that this is one of the best times in American real estate history to buy. If an agent doesn’t believe that, how will they be able to convince a potential buyer to buy your home?

Read the full article.

Question: Should buyers buy?

Answer:

First of all, yes. I whole-heartedly believe that the current real estate market is offering a plethora of once in a lifetime opportunities for home buyers.

However, I also believe that the reasons for my taking on such a biased opinion are just as important as the opinion itself. Let’s take a moment to reflect on my justifications.

Why: As a Broker

Unlike many recent ‘eras of buyer markets’, today, economists, real estate specialists, politicians and home buyers and sellers agree that we are at a historic moment in time. By definition, these moments won’t last long and comprise of unusual or out of the ordinary statistics, in this case, low home value/prices and low interest rates floating just below 5%. Home prices are hovering around the lowest prices in memory. Interest rates are starting to slip upward from an all time low. There are great deals to be had, you just have to know what to look for.

The “stand-off” between buyers and sellers has ended; home buyers, investors and developers are making their moves. Home buyers are back to buying homes, not just looking or waiting for a lower price.  Investors are back in the market.  Home builders are low on new home inventory in the Amelia Island, Fernandina Beach, Nassau County, FL area, and they are now building up their inventory of newly constructed homes.  There is still a very good inventory of homes available on the market, however, the inventory has decreased significantly from its high.

All of these clues tell me that if you are setting on the sidelines, waiting for something better to come along, you’ll be waiting for quite a while. My advice is that you jump in while you can, and buy a home at a price you can really afford.

Why: As a Fellow Home Buyer

I would hate to see you make the same mistake I did: think the market will get more affordable.  Fresh out of high school, as a newly wed, I too was once a first time home buyer. And, not unlike many of you I’m sure, I unashamedly did not know a great steal from a blatant robbery.

As a result of our naivety, my new husband and I continually passed up many a once-in-a-lifetime deals out of sheer hope that the prices would go lower. Of course, prices did not go lower; in fact they steadily increased year decades until about three years ago when the bubble collapsed.

As you know, since that regrettable introduction to the market (and by way of my hard work and perseverance through the hard times, I might add!) I have become more educated on the topic and thus, a quite successful home buyer, broker associate and real estate agent. My understanding of real estate lends credit to those years of experience and education now. But don’t think for a moment that a day hasn’t gone by when I’ve thought, “I should have purchased a home when prices and interest rates were low.”

Contact me for the “Best Buys” in real estate. I would be happy to offer you my resources and information to help you take advantage of the current market.

Do you have a question you’d like answered?  I’m sure you’re not alone.  Submit it here or email me at LilaKeim@BellSouth.net and I’ll do my very best to feature your question.