I felt compelled to update this post from last month as the press continues to provide inaccurate information to the consumer. Two very recent examples:
Places: Today New York Studio Ms. CHATZKY: "You know, if you are somebody who is sitting with a 10 to 20 percent down payment, with a good credit score--and I mean 720 to 760 or above--now is a great time to buy a home." Places: New York City, New York Carmen Wong Ulrich says "And we are running to the bank. And I will, too. Here's what you need to know. That when you refinance your home, you're buying it over again. So you need to have the three C's that you need when you buy a home. First, you have to have fantastic credit. Lenders still want you to a have really great credit score, 760 and above, preferably, to get the lowest rates. ...And what that means is when you buy a home, that you put 20 percent down. It's time to take action!! Contact NAR, your state association, your local board and write letters to the editors of your local newspaper. The facts are that you can buy a home through FHA with a 3.5 down payment, credit scores >580 and get a $7500 tax credit. The Previous Post - Change the Messenger to Change the Message
Reporters: Ann Curry
Recorded Date: 2009/01/01
Reporters: Carmen Wong Ulrich, Lester Holt
Recorded Date: 2008/12/21
Media Type: AS
Don't Let the Press Control Your Opportunities. Get the Message Out, It's a Great Time to Buy!
Lenn Harley's recent post Housing Industry in Recession pointed out how important it is for us to be honest about the market with customers and clients. If we can't be trusted, we won't be successful.
Unfortunately, the press dominates the flow of information and they aren't being totally honest with the consumer. Last week, a CNN "commentator" was emphatic in her claims that you needed a 20% down payment and a credit score of 700 to obtain a mortgage.
Have your heard the press talking about the opportunities to buy in this market with the FHA programs, low interest rates and lower prices? How about your local real estate board, state association or the mortgage banking associations?
Consumer confidence is the key to the turnaround in the real estate economy. While we wait for that process to occur, we should take the opportunity to be honest with the motivated and qualified buyers that need to take advantage of this market and need our professional guidance. The facts:
- First-home buyers - the rent vs. buy analysis (tax benefits of home ownership). In many cases tenants can own their rentals for less than the monthly rent payment.
- Move ups - When is the best time to move up? In a downward or flat market.
- Investors - What are you waiting for?
We have to take the responsibility to get the message out. We can't afford to let other messengers control our business and the consumers thought process.
In one of my past posts, Managing Mindset, I focus on shifting strategy to the buying side and taking market share. So, get the message out to the buyers; low interest rates, exceptional values, great financing (FHA $7500 tax credit, low down payment). Contact your database, write articles about the opportunities and submit them to the press. Talk about the benefits of buying in this market.
Information provided by Virtual Homes Real Estate.
