06.22.09 You had a buyer who was very excited to "buy up". After writing good offers on two homes, they withdraw their offer on the one they have a great shot at getting. They just feel that they

[Elaine Stucy]

need to wait another 6 months to see how the economy affects business and their incomes.

How do you approach this?

[john steiner]

How do you see things affecting you? Are you really concerned about your incomes or over paying for a home?

[Yancy Whittaker]

There are questions I'd ask to illustrate key points (and create some reasonable doubt)...
0k, with your permission, I'm gonna play devil advacate here....Tell me, what's the worst thing that could possibly happen to you if you if we proceed with our offers and it got you what you wanted, buying one of these homes now and prices continued to drop, but interest rates increased? When we began looking for the home you want, in the area and condition you want, at the price you want to pay, I asked several questions, do you remember??? One question was "what would make a home the right home for you", and you shared that with me! The next question was, if I found that home that had what you're looking for, in the area and condition you wanted, at the price you wanted to pay and you loved it, would you buy it???, and you said yes! 0k, well here they are, two of'em, both have exactly what you looking for...we have made good offers and I'm having good results negotiating a great price for you while interest rates are favorable... The apprehensions you have now are natural to feel, but do you really think it’s worth losing what took so us long to find??? Would you agree that if interest rates rise, that alone would make moving forward the right thing for you to do now??? Can you imagine how you will feel if you lose this opportunity if your forecast is not as you think it will be??? How will you know when you have enough information to feel that 6 months from now will be a better or good time to buy??? You seem to really trust and have confidence in the source of the information you are receiving to make you want to slam on the brakes in mid-transaction when we're so close...tell me, who are you listing to that you place all this trust in? Many leading indicators, including news reports like this Wall Journal report, shows that now is a great time to buy...would you be open to allowing me to show you data you need to see and hear which may help you feel comfortable in moving forward and make the purchase on one of these home now??? I'll respect you decision, however, what if in your waiting 6 months to see things as you think will come to pass do, and along with it, came higher interest rates and these homes sold and the inventory of homes, which is deteriorating leaves a poor choice of selections and we cannot find the opportunity which is available to you now...is waiting really in your best interest

[Amine Aghzafi]

Amine:
How does the economy affect you in deciding to buy the home you will live in for the next several years?
Buyer:
Well the prices will continue to go down and we don't know if we will be able to sustain the payments.
Amine:
How about you talk to the lender an see how this price point will translate into your monthly payments?
Buyer:
We have and we are getting uncomfortable with this.
Amine:
Thanks for sharing this info and I am glad we have something to work with now. What if I could negotiate with the seller(s) to buy down points on your loan for a lower interest and take us back down to the monthly payments we started with then.
Buyer:
This sounds great, how does it work.
Agent:
The seller will credit the cost of reducing your interest rate from 5% to 4.75% and it will cost them 1% of your loan amount of $400K.
Buyer:
Let's try this.
Amine:
Great, let me walk you through the math to prep for the next offer.

[Salma Basravi]

Agent: and how have you decided that 6 months from now would be THE time to buy?

Client: my relatives and friends say that, and so does the economy, its going to get worse I know its going to get really bad and there will be tons of foreclosures and that is when i can get myself a real deal.

Agent: I wish I had a crystal ball to confirm that, if that was the case, then I guess my investors would have waited as well, they are all out there having a field day getting great deals. What they tell me is interest is low and prices are great as well. They are basically negotiating ahead of the market to get the best of both worlds. What that means is they are getting tomorrow's price in todays market. Because, tomorrow most people will be buying just like yourselves, and will be competing against each other resulting in prices going back up!

Agent: historically, whenver the prices come down, the interest rate goes up, its a see-saw effect. However, due to the detrimental economy thus the stimulus situation the government is creating to keep the Real Estate ship afloat. This is a time when the prices and interest rates are in harmony with each other.

Agent: If you really do not want to get into a home right now for personal reasons, I totally understand, however if the reason is the price or the economy, you may want to check the pros and cons for buying now vs later. I would hate to see you lose such a great opportunity.

[Donald McVicar]

I completely understand your apprehension, it's very common. But can I ask,
How will waiting six months impact your need to buy now? We have found the house that met all your criteria, correct? "yes"
If nothing changes in the economy, or your jobs in six months, and you are in this house, how will you feel?
"great"
How will you feel if interest rates go up, or the market takes a turn in a positive direction, and you cannot buy a home like this? "not too good, unless there are others available"
I understand, but really think about this. Put yourself in this position 6 months from now. Job is the same, economy is the same, interest rates go up, and your in a category at $50-75 thousand less in your purchase power. Do you really want to live closer to the freeway?
"no"
This is a great time for you. I do understand the anxious feeling, but you could have 6 months of equity and tax write off's, with a $8000 tax credit by the end of the year. How does that sound?

[Devra Zandell]

well mr & mrs. buyer--- I understand this is probably one of the biggest commitments you will make.!

What do you think will happen in 6 months?
" they answer" we dont know- we just want to wait

Is there anything that has changed since we started that I should know about? For example, concerns of your job security, down payment, peer pressure ?etc?

[Josef Szigeti]

How today economy is changing your need to buy now?
How much do you think the market would go down in 6 month?
Do you want to write an offer for X% less than today’s prices?

[David Griffith]

Agent: What if you wait six months and the house prices go up and so does the interest rates? Will you look back and wish you had purchased now?
Or Agent: Are you concerned about the housing market going down or your income going down?