YES Talk 266- Buyers: "Should I Buy Now or Wait?"

Interest rates are through the roof. Is this a good time to buy or should I wait? Hey there, it's your coach, Kevin Ward, the founder of yes Masters Real Estate Success Training, helping you get more yeses and more successes in your business and in your life. And these are conversations that I know you as agents are having with buyers and sellers these days. And if you happen to be a buyer, seller, watching this and you're going like, is it a good time to buy or should I wait? So this video, I'm going to talk about the factors that are affecting whether it's a good time to buy or not. As an agent, what you should be doing to help buyers make a decision about whether or not it's a good time to buy or sell. And also I'll let you know if you're a real estate agent watching this. The most important thing for you is to know what's happening and know what to do about it, both for your business and for your sellers. If you want more about how to do that, I'm going to invite you to join me for a free masterclass called Winning in a Changing Market. Just click on the link in the description and you can register for that free masterclass. And we're going to dive deep into what's happening in the market and what to do about it for you and for your clients. And also, if you have not yet watched last week's video that I did on, is it a good time to sell a again, I'll put that link in the description so you can click on that link and you can go watch that video first. Because also in that video, I talk about the five major factors that are driving the economic instability and what's happening and how it's affecting the housing market. So that is in the other video. You can click on it. Is it a good time to sell and watch last week's video? So here's what's happening right now in the market. Sales are down. Home sales nationwide are down. That's not the same. Not the same in every single market. There are some markets where inventory is shooting through the roof and prices are in a freefall. Okay, so we're seeing markets like Phoenix, Las Vegas, Austin, Texas, Boise, Idaho, where things are really have completely turned. And so the conversation is very much dependent on what market you are in and what is happening in your market right now. But also knowing what's happening in your market right now is probably going to change or is going to continue to change. So if you are an agent and you're like I'm dealing with this and I got buyers saying we're thinking about waiting. Should we wait? Interest rates have doubled. It's just like we're just, we're thinking about waiting. So here's what you have to do as an agent with a client or a prospect or a lead that is thinking about waiting. So number one is what is their motivation? Okay, Just like with seller, the most important thing is why you want to buy a house. You, it's your motivation that's the most important thing. And for you as an agent, you have to understand what their motivation is. So you are serving their motivation, not yours. Okay? Number two then once you understand their motivation and you have the knowledge of what's happening and know what to do is you become the problem solver where you can help lay out for them. Here's the pros of buying now and of buying now. Here's the pros of waiting. So you're laying out pros and cons. If you buy now, here's the pros, here's the cons. If you wait, here's the pros, here's the cons of that. And if they want to buy now, here's what I can do to help you still make it a great move for you to buy and be in a house and do it in a way that's affordable and helpful for you. Okay? And so this becomes then a part of that, of being the problem solver is knowing that right now, for example, if you're in a market where inventory has gone up dramatically, things have started softening, price reductions are happening, homes are sitting on the market longer and, and prices are starting to drop. Now, if you have a buyer even though their interest rates are higher, there are several things you can do for them to negotiate and make it as good a deal or better than if they had bought six months ago. One is you're probably not going to be dealing with multiple offers in some of your markets. So no longer we deal with multiple offers, which means we are in a better position to negotiate a better sales price for you, Mr. And Mrs. Buyer, so we can get you a better price. Plus we also are able to negotiate concessions from the seller to help make it the term is better for you. For example, we can buy down into, we can negotiate to have the seller do a concession to buy down your interest rate so we can get that 6% interest rate down to under 4%. Okay? All of this just you knowing how to be a problem solver and negotiate for your buyer to Help make it a good deal for them now and then. The third thing as an agent you just need to be aware of is the most important thing as I'm working with clients is the relationship. You must don't use BS because you must have build credibility and trust. They're looking at and going like, I need to know who I can trust. It's got to be you as the agent. So when you go in and you know what's happening, you know what to do about it, you're paying attention to what they want, their motivation, and you're a problem solver for them. You're building the relationship. So even if they do decide not to buy right now, there's people out there who are going to be ready to buy right now, people who are going to be ready to sell right now. You've got to master the process of finding the people that are ready to do something now and the people that aren't, of building a relationship with them so that you can get their business when the times come. Now this is what I train in our masterclass on. How do you do that? How do you build the relationships? How do you lead people to make good decisions that will help them do what's right for them? Okay, so now let's talk about is this a good time to buy or not? Okay, so is it a good time to buy? Yes, if one of these three things are in play. Number one, if you are wanting to a place to live and you're planning to stay for five or 10 years, okay, if you're looking to buy a place, you're only be there for a couple of years, this is probably not the time to buy because interest rates are high and prices are probably going to come down. Just probably going to happen. In most markets, interest rates may continue to go up, we don't know. But right now, if you're looking for the best deal, this is probably not the day to get the best deal. But the reality is, is there ever a day that you're going to get the best deal? Because you look at all the people that bought houses over the last two years, did they get the best deal? Probably not, but they bought anyway. So if you're looking for a place to live and it's going to be your home for the next five or 10 years and you're ready to buy a house now. Buy a house now. I will be able to negotiate for you to get you the best terms and the best price. Negotiate the best price for you. We'll negotiate to get Your interest rate bought down with the mortgage company with seller concessions, and we can help you do it. You're going to be happy in your place. So, yes, if they're want to want a house to live in, they want to buy and it's a and and they're planning to stay in it, it's a good time to buy. Number two, it's a good time to buy. Yes. If you're in a market where buying is still cheaper than than renting, and that is still true in a lot of markets. Rents have gone through the roof in a lot of places. And a lot of places it is cheaper to buy than it is to rent. You're going to live somewhere and if we can negotiate and get you great terms, great price on the house, it's going to be, you're going to be in your own home now and you're going to be building equity into your home. So your mortgage payment, every month, your house payment is making your mortgage payment. It's not making somebody else's mortgage payment. Okay? So it's a good time to do that. And number three, yes, it's a good time to buy. If they have an agent that can help them negotiate the best terms and price, get seller concessions, buy down the interest rate and get a great price because you're no longer having to deal with multiple offer situations. So there's a lot of situations, and I'm seeing this with a lot of my coaching members that I work with that are agents, that they're getting their buyers much better deals today than they were getting able to get six months ago because of the changes that are happening in the market as it turns from being a heavy, heavy seller's market toward becoming a buyer's market now. When is it not a good time to buy? Right now. So is it a good time to buy now? No, if you're buying for appreciation. So for investors right now, if they're buying and appreciation is a big part of the game, or homeowners are like, it's a big deal to them if you're buying for home appreciation. And like, we're going to buy today and we're live here for a few years, the home will be worth more. Probably not the best time to buy a house because the indicators are saying more likely housing prices are going to drop in most markets and they are not going to go up. So if you're buying for appreciation, no, this is probably not a good time to buy. Number two, it's not a good time to buy if you're happy where you are. Like, if you're happy where you are and you're looking for the best time to buy, this probably is not the best time to buy. When will it be? Nobody knows. There are very, very, very, very few buyers ever that find the best time to buy. They just don't. So it really comes down again to motivation. Okay. And if another reason it's not a good time to buy right now is if this, you got a buyer and they're just absolutely adamant. I want to buy at the bottom. When the market hits the very bottom, that's when I want to buy. This is probably not the bottom. We are at the top, not the bottom. So it's probably a good time to wait for that person. So again, as an agent, as you're thinking through all of this, it's about what the client wants and then helping them find the best way to get them the best terms and price and get them into a house. Is what this what's good for them. And not trying to force somebody into it that doesn't want to do it. There's somebody that they had their eyes set here and interest rates have gone up and so now they're having to lower it to here and they're not happy with it. Wait, build a relationship. But if they're just looking and going like, I just, I want to buy, I can buy, I need to buy. I just don't like the idea of paying higher interest rates. No problem. I can solve that problem. I can get the buy the seller to buy down your rate. Well, I just don't want to pay so much. No problem. There's lots of inventory here in your market. We can negotiate now prices down because there's more inventory and there's fewer buyers. So now we are in a better position to negotiate. So you as an agent, become the one who leads clients to make good decisions and help make win win scenarios for you and for them. Now, again, if you want more about what's happening in the market and the changes, how it's going to affect your business and how to adjust so that you can win with buyers and sellers and for yourself in the market. Make sure that you register for the free masterclass that I have coming up. And if you like the video, make sure you give it a thumbs up and subscribe to the channel if it's your first time here, play to win and always expect yes.