Buyers may ask: Is there any money?  Can I still get a loan?

“Yes, there is still a sound market for home loans, however, the criteria for qualifying for these loans has tightened somewhat.  With good credit and a reasonable down payment, you should be able to find a good loan. As we discussed, you will need verification that you have been pre-qualified to submit along with your offer.  You should speak with your bank or I would be glad to suggest several lenders with whom you can speak.” Buyers may ask:  Is this the right time to buy? “Yes, as we are in a Buyers market right now.  The inventory of homes that have been on the market for longer periods than expected has created Sellers that are ready to negotiate.  Don’t get me wrong, this is not a fire sale market, but one where both parties can usually come to a reasonable agreement on the purchase price.”  “Yes.  Most Sellers in this market are motivated to sell, not just to see how high a price they can get, as sometimes happens in a Sellers market.” Sellers may ask:  Is there any money? Are there any Buyers left? “Yes, there is still a sound market for home loans, however, the criteria for qualifying for loans has tightened somewhat.  This is advantageous to you, as potential Buyers looking at your home will likely be better qualified and able to complete the closing of the escrow.”  “There is a Buyer for every property.  “We need to outshine the competition in price and condition to attract the most Buyers possible”

•  Sellers may ask:  What should we be doing to sell our house with these economic conditions?

“With the information that I have provided to you about the current market, you should price your home accordingly and fairly.  You don’t have to give it away, just be within the fair market range.  Next, realizing how many other homes are competing with you, prepare your home to be the Buyer’s choice.  I will be glad to assist you with ideas of how to accomplish this.”“Let’s make sure it is priced ahead of the “slide”, not caught chasing any potential fall.”  “You must be very competitive about price and the property must show better than its competition.”

•  Everyone may ask:  What does the Credit Crunch mean for Tucson and Southern Arizona?

8/31/07 from azstarnet.com:  “Tucson home prices dropped 0.07 percent in the second quarter. And the normally booming Arizona housing market is so cold that prices could not even keep pace with the national average, which actually went up a tenth of a percent in the same period. And that figure was the smallest hike since 1994. Put in real dollars, that decline means a home that was valued at $200,000 three months earlier now is worth $580 less. “Now is the ideal time to buy because we are seeing prices lower than they have been in a long time,” said John Strobeck, owner of the Tucson based Bright Future Business Consultants. “They won’t stay as low as they are now. … I would say that within a year we will see prices inch back upward.”  … Strobeck said the decrease in prices makes perfect sense.“We see prices being pushed downward because demand is low,” he said. “It is low because everyone bought homes in 2005 and at that time, investors came into the market and pushed prices way up. What we are doing now is adjusting back to where we should be.” The statistics reflect how much the values of existing homes have gone up — or down. The agency tracks average price changes in repeat sales and refinancings of the same single family properties, using statistics from mortgage transactions. 

• Some may ask:  What if we can’t make our mortgage payment?

8/31/07 from Real Trends:  “ Getting lenders to work with borrowers is the key for many programs out there. Most non-profits and government-run programs are not offering bailouts as much as they are looking to get borrowers who obtained their mortgages under terms they couldn’t meet into more affordable situations.” 8/31/07 from the Wall Street Journal:  “Mr. Paulson and HUD Secretary Alphonso Jackson have instructed their staffs to begin working with mortgage lenders and others to identify borrowers who are in danger of defaulting. They also are trying to work with private lenders and mortgage giants Fannie Mae and Freddie Mac to develop loans for borrowers who will likely face default if they can’t get more flexible terms. 8/31/07 from the Wall Street Journal: “President Bush, looking for ways to respond to the subprime-mortgage crisis, will outline a series of policy changes and recommendations today to help borrowers avoid default, senior administration officials said.  Among the moves will be an administrative change to allow the Federal Housing Administration, which insures mortgages for low- and middle-income borrowers, to guarantee loans for delinquent borrowers. The change is intended to help borrowers who are at least 90 days behind in payments but still living in their homes avoid foreclosure; the guarantees help homeowners by allowing them to refinance at more favorable rates. Mr. Bush also will ask Congress to suspend, for a limited period, an Internal Revenue Service provision that penalizes borrowers who refinance the terms of their mortgage to reduce the size of the loan or who lose their homes to foreclosure. And he will announce an initiative, to be led jointly by the Treasury and Housing and Urban Development departments, to identify people who are in danger of defaulting over the next two years and work with lenders, insurers and others to develop more favorable loan products for those borrowers.  President Bush, looking for ways to respond to the subprime-mortgage crisis, will outline a series of policy changes and recommendations today to help borrowers avoid default, senior administration officials said.  Among the moves will be an administrative change to allow the Federal Housing Administration, which insures mortgages for low- and middle-income borrowers, to guarantee loans for delinquent borrowers. The change is intended to help borrowers who are at least 90 days behind in payments but still living in their homes avoid foreclosure; the guarantees help homeowners by allowing them to refinance at more favorable rates.  Mr. Bush also will ask Congress to suspend, for a limited period, an Internal Revenue Service provision that penalizes borrowers who refinance the terms of their mortgage to reduce the size of the loan or who lose their homes to foreclosure. And he will announce an initiative, to be led jointly by the Treasury and Housing and Urban Development departments, to identify people who are in danger of defaulting over the next two years and work with lenders, insurers and others to develop more favorable loan products for those borrowers.” Keep the Dialogue Going…..

It’s like listening to the old Keith Richards song in brokers’ offices all over town these days. Certainly this comes as no surprise to most of us, but sellers are UNHAPPY!  They’re developing DSS, Dissatisfied Seller Syndrome, and Brokers’ phones are ringing off their hooks.

 “What’s my agent doing!  There have been no showings, no open houses, no ads in the newspaper, no calls, no nothing!  I want OUT of this listing agreement,” … (more…)