Buyer's 'blues' is another's opportunity

Too many would-be buyers fail to realize that the market now offers more opportunities than at any time in the last four years.

By WINNIE DAVIS and David Walker

Southland Regional Association of Realtors®

Realtors hear it in the voice and see it in the eyes of prospective home buyers - hesitation.

Sometimes the moment of doubt is justified, perhaps because the purchase might overextend a family's finances.

Or, because the house simply does not meet a buyer's needs.

Unfortunately, that split second of doubt pops up too often for the wrong reasons - prospective buyers simply fail to understand market realities.. They are making decisions - yes, merely waiting is a decision - based on incomplete data and false perceptions.

Some people seem convinced that the market is stuck when the truth is sales continue, albeit not at the record-setting pace of recent years.

Too many would-be buyers fail to realize that the market offers more opportunities than at any time in the last four years.

Yet they remain on the sidelines when they should be active and many indicators suggest now might be a wise time to buy, especially if a family intends to stay in place for at least three to five years.

Many of today's prospective buyers need a home to accommodate a growing family, have some money in a savings account, a steady job and excellent credit. They are perfect home buyers, yet still they wait. For what?

• Interest rates remain at historically low levels. A borrower with good credit can get a 30-year, fixed-rate loan at around 5.8 percent, which was the overnight rate when this page went to print.
• People continue to flock to California, seeking mild winter weather, the beautiful mountains, the beaches and the great way of living. The flood is unlikely to stop anytime soon which ensures that real estate price will remain strong.
• Even with the run-up in resale prices, the cost of renting comes close to what it takes to buy a home, only renters never reap any benefit, unless contributing to their landlord's retirement makes them happy.

Anyone in the market for a home should heed this advice - stop over-thinking the situation.

Stop hesitating.

For the first time in years, buyers can pick through a selection of homes, take their time to make a decision, negotiate from a position of equal strength with sellers, and snag a ridiculously low interest rate. So where is the problem?