Experienced buyers say now is a smart time to buy

Just a reminder: In a buyer's market, there are more buyers than sellers and prices begin to drop. In a seller's market, there are more sellers than buyers and prices begin to rise. Supply and demand.

But homes are not commodities. Each home is unique. Sellers do not create a buyer's market, buyers do. A buyer's market in real estate means that sellers are willing to look at reasonable offers. The listing prices of homes are not set by some consortium of sellers.

Many inexperienced buyers, used to paying what's market on the price tag, believe that home buying works the same way. They see a home they like and decide to wait for the prices to drop.
If a buyer wants a price to drop, he has to make an offer. In a seller's market, the seller sets the price and waits for the first full-price offer. In a buyer's market, the buyer makes a reasonable offer and the seller decides either to accept it, to lower his price, or continue to wait for the full-price offer. A buyer whose reasonable offer is rejected is no worse off than he was by making no offer at all.

So is this right time to make that offer? Read the following report.

RISMEDIA, Feb. 14, 2008-Despite all of the negative commentary about the housing and credit markets, 64% of Americans believe that for those with good credit and a down payment “this is an ideal time to buy a home,” according to a study commissioned by Beazer Homes, one of the country’s top-10 homebuilders.

“We know the American consumer believes with great conviction that home ownership is a smart investment over the long term,” said Ian McCarthy, president and CEO of Beazer Homes. “Savvy consumers realize that housing is a cyclical industry and some appear to be waking up to the opportunities that do exist in today’s marketplace. Whether they act on this conviction remains to be seen, but the underlying sentiment bodes well for the industry.”

Indeed, 65% of survey respondents agree that given the current supply of homes for sale and special incentives this is “truly a buyer’s market.” And, 39% believe that tentative buyers who are waiting for home prices to go lower risk “missing out on one of the greatest home-buying markets in recent history.”

As in most areas, experience brings additional confidence. The survey found 70% of experienced home buyers-those who have purchased at least one home-urging renters to purchase a home as soon as he or she is financially able to do so.

Across the board, consumers appear optimistic about the availability of home mortgage options. For experienced buyers, 75% believe there are plenty of mortgage options available for those with good credit compared with 53% of first-time buyers. When it comes to securing a home mortgage, 24% of total respondents report they are currently saving for a down payment.

Beazer Homes surveyed 548 adults nationwide, Jan. 4-7, 2008, between the ages of 25 to 72 with a minimum annual household income of $40,000.