Why is NOW the
time to Buy?
Insert Name & Logo
Why is NOW the Time to Buy a Home?
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Home affordability is at an all-time high
Mortgage rates are near all-time lows
Cost of homes is beginning to rise
Sellers are motivated
Financing is readily available
Owning vs. renting is increasingly favorable
Home ownership is still at the core of the
“American Dream”
Affordability Has Never Been Better
Monthly Payments are Low!
Affordability Rises to “Highest Level in
Two Decades”
• According to the Home
Builders/Wells Fargo
Housing Opportunity Index,
nationwide housing
affordability during Q4 2010
rose to it’s highest level in
two decades
• 73.9% of all homes (new &
existing) were considered
“affordable” to families
earning the national median
income, which is $64,400
Local Market Stats
• (insert your own here)
Home Loan Rate Outlook
• Will gradually inch higher
over 2011
• But won’t be in a straight
line
• And…2011 will be third
best year on record, just
behind 2009 and 2010
• Interest Rates + Price=
Overall cost of a home
Who is Involved in the Home Buying
Process and How Do They Help Me?
Mortgage Professional
Realtor
• Insert some bullet points
about you!
• Insert some bullet points
about your Realtor partner!
Who’s Working for Me?
Buyer’s Agent
• Promote the best interests of the buyer
• Fully disclosing to the buyer all facts that might affect
or influence the buyer’s decision to tender an offer to
purchase
• Keeping confidential the buyer’s motivations for buying
• Presenting all offers on behalf of the buyer
• Disclosing to buyer all information known to the
buyer’s agent about the willingness of the seller to
complete the sale or to accept a lower price
What Does the Seller’s Agent Do?
Seller’s Agent
• Promote the best interests of the seller
• Disclosing to the seller all facts that might affect or
influence the seller’s decisions to accept an offer
• Keeping confidential the seller’s motivations for selling
• Presenting all offers to the seller
• Disclosing to seller all information known to the agent
about the identity of all buyers and the willingness of
those buyers to complete the sale or to offer a higher
price
Cost of Homes Are Beginning to Rise
•
The cost of homeownerships is
BOTH the acquisition price + the
cost to finance
•
Bob Weidemer, author of highly
acclaimed book, “Aftershock”
illustrates the impact of rates
moving higher…and how it
impacts “fence sitters”
•
If rates go up by 1%, a home’s
value (and sales price) would
have to decline by 11% in order to
keep the same mortgage payment
they could have had by buying
right now at current home values
and current home loan rates
Financing is Readily Available
• 0% Down VA
• 0% Down USDA Rural
Housing
• 3% Down Fannie Mae
HomePath
• 3.5% Down FHA
• 5% + Down payment for
conventional financing
*Some states have down payment
assistance programs for lowmoderate income buyers
Renting makes little sense
• Even though prices may still
soften, waiting to buy wouldn't
make sense since the cost of
owning a home may still increase.
• Mortgages may soon become
much more expensive than they
are right now.
• Owning a home is less expensive
than renting a home in 72% of
major U.S. cities.
• Rental costs are about to explode.
Rental Prices are Going
Apartment vacancy has dropped significantly since the
recession, which ultimately drives up rental rates.
Rent is Movin’ on Up
• When supply is rapidly
decreasing and demand is
quickly increasing, prices
have only one place to go –
and that is UP! That is
exactly where rental prices
are headed
• In April The Wall Street
Journal wrote, “Expect
vacancies to continue
declining and rents rising
through the rest of 2011 at
an even faster pace.”
Even Major Media Outlets Suggest
NOW is the Time to Buy
The Wall Street Journal
Why It’s Time to Buy
http://online.wsj.com/article/SB10001424052702304563104576361522020024248.html
CBS Money Watch
Why the Time to Buy is Now
http://moneywatch.bnet.com/economic-news/feature/real-estate-why-the-time-to-buy-is-now/6244377/
Forbes Magazine
9 Reasons to Buy a House Now
http://blogs.forbes.com/investopedia/2011/06/03/9-reasons-to-buy-a-house-now/
National Public Radio
For Many It’s Still a Good Time to Buy a Home
http://m.npr.org/news/Business/137029194
Thank You!
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