Return of the Motivated . . . Buyer??
For as long as anyone can remember, all anyone’s talked about in the housing market are motivated Sellers.
As in, desperate for a deal, because their house has sat on the market for eon’s and they’re running out of time to make a move. Or, if they don’t sell, they’ll lose the house to the bank (assuming, of course, they have any equity left in it — or ever did).
Now, I’m starting to hear and see isolated instances of Buyers feeling pressure to buy (imagine that!).
It’s certainly not the case in every Twin Cities neighborhood, or at every price point, but the number of motivated Buyers seems to be creeping up.
Here are a couple of the reasons:
–First-time Buyers want to close before the end of the year to take advantage of the $8,000 tax credit.
–Buyers know that, while there are a growing number of programs to assist eligible (mostly first-time or lower-income Buyers), many of the programs have limited funding that is quickly exhausted.
–Buyers who’ve been looking for bargain-basement foreclosures and have lost bidding wars (yes, they’re popping up again) are nervous that the next wave of foreclosed homes won’t be as attractive — or attractively priced — as the last wave. Or, there won’t be another wave.
–Buyers looking for what everyone wants — homes in a good location, that are nicely updated, have a sensible floor plan, etc. — are disappointed by how limited their choices seem to be in certain, higher demand areas of the Twin Cities. Instead of waiting for an even better price, they’re increasingly nervous that they’re going to be outmaneuvered by another Buyer willing to pay close(er) to asking price.
What all of these situations have in common is the fear of loss.
When Buyer psychology tips from fear of buying too soon, to fear of missing out . . . the market’s definitely firming up.