Don't Forget the Buyers

[Megan Zavieh]

Everyone on this site is obviously focusing largely on obtaining, marketing and closing REO listings. But don't forget the buyers! It's nearly spring buying season, and I am really hopeful that business will pick up in the coming months. Here in Northern California, we have seen prices climb exponentially and then...some would say "finally"...come crashing down. We have some neighborhoods, including our specialty area, where prices have not fallen quite as hard as in other areas, but generally we are looking at prices we haven't seen since the early 2000s. We have an awful lot of buyers out there thinking this may finally be the time to get in the market. Fortunately, a lot of those buyers are people who did not want to get into the risky sorts of financing deals that were used by so many to purchase inflated-value homes, so they even have good credit to work with.

So, as we work on our portfolios of listings, don't neglect the buyer side too. Given the large percentage of REO properties in the inventory, REO agents are also in a good position to help buyers navigate the different process of buying a bank-owned home. If I was buying, I'd rather have an agent who understands the disclosures banks are and are not required to make, why it is that some actions take longer than they otherwise would for a standard sale, etc.

Let's go sell ... and buy too!

[D'Adrea Davie]

I also agree that the number of homebuyers is going to decrease due to the tax credit as well as the HAFA program. I think we are going to see the market begin to level out this year because of the HAFA process, the lenders, servicers, and investors will be pricing the short sale homes that come on the market. This is going to be an interesting time. Buyers will come, the question is at what pace?

[Barbara Pedersen]

Johnny, I agree. I think that the increase in the number of sales is driven by the tax credit and has created an artificial market. I think that once the credit expires the buyer demand will diminish considerably. As you said, the timing of HAFA being implemented in April is interesting. We would have to wait and see how it plays out. However, will the housing market be able to stand on its own without a significant rise in employment? I doubt it.

[Megan Zavieh]

I don't think prices are done falling, but if you're going to buy and stay put for 5 or more years, this is a great time to buy even without the tax credit. I think we will see a surge of buying in the next few months, with a slowing again after that.

[Johnny Huang]

A concern of mine is when the tax credit expires, what incentive would the buyers have now? It's an artificial demand IMO and when it happens, prices will also drop due to less buyer demand. I think the timing of the tax credit expiring and the government's increased actions to halt foreclosures will determine what out true economy will turn out. A double dip recession? Maybe and highly so...