Christine, buyers are buying in my area, Kansas. However, my busiest time of year is the summer months. I am hoping to build my inventory right now for the serious shoppers this summer. I have no idea why, but as soon as our snow melt, people were coming out of the woodwork. Bring it on.

It's much the same out here in the SF Bay Area.  My opinion is that buyers believe that prices will go even lower if they wait.  I've actually heard someone say that.

Given that we don't have crystal balls, it is hard to say what will happen in the future.  One thing is for sure though, no one knows how long interest rates will stay low.  I think the best thing to do is ensure that buyers are preapproved and that we understand what they are looking for.  If they have access to funds, and they are shown their "dream house," then there is a high probability that they will buy.

Even if they can't afford their dream house at this point (at starter house is ~ $600K in my market).  I try to educate them and show them how leverage and equity eventually work in their favor.  Maybe they are two to three houses from being able to afford their dream, but if they are in the game, they will have a better chance of getting there than if they don't purchase at all.

Have you held first time buyers seminars for potential buyers?  These are great for getting people off of the fence and into a home.

Just my two cents.  Hang in there.  

You might get better answers by submitting this question to psychologists! In Calgary last year, we had record sales when there were very few listings(1700) on the market. The prices rose about 40%, tons of new listings came on the market(6800 active listings), and people stopped buying. I can only surmise they were waiting for prices to drop, which they did but very minimally, about 5%, but they didn't buy. The active listings have now dropped again to about 3700, and the buyers are out in full force. Prices have gone up about 12% already this year. Buyers had lots to choose from back in October, lots of negotiating power, and lower prices, but they mostly waited 'til the new year when prices went up.

Unfortunately, buyers and sellers are one in the same.. statistics tell us that most people purchase up or down within only a few miles from where the just sold.  That understood, we must also recognize that potential sales are still being generated by an unsophisticated real estate consumer.  They have not owned or invested real property for more than one or two cycles... additionally many of our sales are relying on the unsophistacted owner/investor looking to purchase their next property when and only when their current property has been sold.  Many of these type of consumers by with the trends because of lack of information and poor education by our peers....we get caught in the frenzy of closing the deal during the good times we forget to educate and set expectations for the down turn or the glut side of each cycle.  My solution is a brick by brick approach.. educate each prospect and client one by one by one... teach them about leverage, lost opportunity costs and how to recapture them- how to buy up- alternative financing..get them to understand that the cost of money and terms of financing is often times more important than the price or present value of the property-help them understand the benefits of owning more than one property-dollar cost avg..teach them about bad debt vs. good debt etc etc. etc....Let the real selling(educating) begin!

High prices, mortgage fears, psychological effect of loosing money if prices come down and not be able to refinance if house value drops. I believe biggest of all is the hope of price drop, people are staying on side lines. Lately we are seeing increase in sales, more calls, more showings. Would it continue throughout into the summer, is big question?.

Buyers are buying if you create urgency. Christine, you have a "shopping bag of buyers" Tell me about your top 5 - why do they want to move??

We are busy with buyers here in Licking County, Ohio - just NE of Columbus.  One thing most of our buyers have in common is, they started off with this notion that no one is buying - they thought they had serious power and decided to play one of two games, either they would write a low offer or just wait so the seller would be even more desperate.  Most of them have missed out on the house they really wanted - someone else put it under contract while they were playing their game.  

Just 20 minutes NW of Columbus in Marysville and working into the metro area, I've experienced the same as Tracie over fall and winter. It seems our prices have levelled here and the homes are moving at 3-4 times the pace in February and March as they were since last fall. If they don't buy soon, they will miss out on some great homes and rates! Recently I am even experiencing multiple offers on some properties again!  Hope that is good news for others around the country.

Buyers don't buy for a whole host of reasons, but the primary one I agree with here is Michelle's - they're not buying because there's no sense of urgency. Now you're probably wondering - how do I create a sense of urgency?

Simple. There are three important ways to do this. First, you need to show them a trend in mortgage interest rates - preferably from the late 60s on. This will show that interest rates are still at historical lows. Second, you need to show them a list of homes that that have sold rather quickly - this shows that homes that are prices right are moving, and fast! Third, show a list of homes in their price rangle that have recently sold at or near their asking price.

Some of your buyers - not all - will get the idea that if they come across a house that's "them," they'll make an offer.

I also keep a notebook of local newspaper clippings over the past year that shows a trend in real estate - thankfully the current crop or articles show an improvement in the real estate market in my area. So, I can show potential buyers (and sellers!) all the gloom and doom of 2005, and also show how the real estate market is improving in 2006. That will also help convince buyers that now is the time to buy.

Hope this helps you improve your sales!

Hi Christine,

My fellow Prudential  collegue, I have had this problem also, and my coach said that they have to commit to you first, then they may get off the fence and buy.

Now, the same applies to sellers, they have to commit to put their house on the market and VOILA, we have people willing to MOVE their ...

Now, what I want to know is why they have signed up with someone else after all my efforts, my offerings, and my commitment to them?

I can cite at least half a dozen cases, in the not too distant past!

It's quite upsetting to me, but life goes on!

I am in Michigan and it seems that the is a over whelming amount of homes on the market.  Buyers don't have to rush into anything.  They can take weeks to find the "perfect" home.   The average buyer here takes about 6 months before they write an offer.  I do see that with the weather getting warmer there are more sign calls and activing on the web-sites.  Interests rates are going anywhere, so they don't feel the need to act fast.  

May you have a successful 2007 and don't worry, it seems that things are picking up!

Lew-

I would like to add a 4th to what you are saying:

4) Find out why they are moving - if it is to get into a better school district focus on that - if it is to have more space/less space/or whatever focus on that.

Hi Christine:

It's a bit comforting seeing that I'm not alone, I am also dealing with with more insecure buyers than the normal.  Buyers are taking much more time to decide, and sometimes they postpone buying for another time after making you loose your time.  The business is definitely changing, and we have to make our adjustments as well.

I've been in the business since 1994 and I've seen both markets. When I work with "buyers" at my first meeting I request they fill out a wish list.. then look for homes that come nearest to most of their desires. I show them no more than 4 homes within their criteria and if they have not made an offer I will ask them why.  Usually the answer is they haven't found "the home" yet.  I try to categorize "buyers"  AAA   AA   A   "AAA" ready to make the purchase now  "AA"  is almost ready  "A"  will be ready in the future. Some buyers are just lookers. Since the cost of gas is almost $3 a gallon it becomes quite expensive to entertain these people with a tour of various communities. I hope you have found this information useful.  Good Luck!

I always at least use the interest rate idea, I tell my buyers that there is no way to tell what interest rates are going to do in the future. I did some poking around and found this site:

http://mortgage-x.com/trends.htm

I can't believe that I bought my first house in the late 70's and thought I had a bargain with my interest rate.

Hi Christine:

Many of your buyers you have in your bag have been told that it is their market. The sense of urgency to buy is not there for them, in their mind.

You need to show them homes that have sold within your area under 30 days.  Your helping them understand the market and by giving them examples, letting them know that their dream home might not be available tomorrow.

A few areas within my county are experiencing a high demand for homes under $200K. Within 14 days 2-4 offers are not uncommon. The flip side are homes over $300K. The urgency needs to be used for these type  of buyers.

Hope this helps.

As several have already mentioned above, the buyers have a ton to chosse from, so there is no hurry for them to make a decision!

In Florida, we have the added issues of insane property taxes and insurance!  

It'll get better, it always does.  It's just a matter of time.

......wished I had a crystal ball to tell me when that time was going to be though!  

:)

I still thik the baseball bat to the knees still seems to get them in gear. I like to tell the buyers about the latest new about banks and tell the rates will go up and standers will too.

Buyers are overwhelmed.  Michelle is right.  They don't feel a sense of urgency then they turn in to LOOKERS instead of buyers.

What you have to do is LOOK with them until they STUMBLE on a house that won't wait for them.  

OF course you can help them accidentally stumble upon a good one by  learning what they actualy want in a house and leading them to a new listing that fits the bill, or a recent price reduction.  While learning what they like....

Tell stories about how there are so many and they have lots of time to think about which house or area that they might like.... EXCEPT FOR THE SIMPLE FACT THAT GOOD HOUSES AT GREAT PRICES STILL SELL FAST.  But that's ok... most of the houses we see will probably wait a few weeks while we look around.  UNLESS WE HAPPEN UPON A NEW LISTING OR RECENT PRICE REDUCTION THAT  

When you get them in a good one....  You start getting excited, yourself.  Say things like WOW and THIS IS GREAT and....  

Start telling stories, (only if true) about the last time you saw a house like this, and the buyer waited too long, somebody else bought it while they were thinking about it.  

PAUSE.....  

Then say, I am not sure, and I don't want to alarm you, and I don't have a crystal ball.... this one might last - but it might not.  In fact, in my professional opinion, if you like this one, we ought to make an offer before SOMEBODY ELSE DOES.

Michelle is right on--the sense of urgengy is not there in most parts of the country, however; I market the "burbs" of New Orleans and we have three reasons why buyers are not buying:

1. the cost of insurance, 2. the cost of insurance, 3. the cost of insurance.  I understand portions of Fla. are going through the same thing??  Any comments?

thanks point 2 all of you here  are so Brilliant its very educational to read your posts

If you’re in a market that brings sellers to give up money and lots of homes always come to the market the buyers will have a problem to make a decision to choose from the many deals out there

However successful people never blame the outside for there success not the market not the sellers and not the buyers instead they study the market and reactions of the parties involved and then prepare a wining strategy and this is what you do

Your market is having buyers that are unable to make a decision to choose from so much homes out there. However if there would be a deadline forcing them to choose, they will need to sacrifice on some not to lose the others…!!! So you have to study your clients closely, and try to discover when they fall in love with one of the homes they view. then its time for you to act..!! But as soon they spot your having an agenda and you lose their trust your like guns with no bullets don’t do it before…!!  Start building in their mind a fear that someone will take the opportunity of having that home away from them..!! tell them that the last viewer loved that home because blah blah blah but was not qualified for financing because they where not on their job for a long time…!!! And others who liked it are not willing to offer more then blank etc..

I'm from Michigan too. Valerie is correct but I think that there are three more reasons why buyers are not buying:

1. they're afraid they may lose their job,  2. they're afraid they may lose their job, 3.they're afraid they may lose their job.

lol gail your wonderfull you should be a trainer

Becky, you keep talking about these crazy property taxes in Florida.

Have you looked at property taxes in other states?  Most of your buyers should be out of state/relocating/second home buyers.  Check the taxes in their states and I'm quite sure you're going to find that Florida is a bargain for them.

My buyers are buying.  And then I have the tire kickers.  It's always that way.  

Cyd, I don't mean to sound rude.  BUt do you watch the news or read the papers?

Florida is outrageous in property taxes.  Tallahassee is currently working on trying to find a fix for it!  If Florida taxes weren't an issue for people, then I don't think they would be trying to reform anything and come up with a new way of dealing with it!

If you consider 4k, 7k or even 10k a bargin for property taxes, then you are insane!!!

People that have lived in their homes for a long time and still pay taxes on lower values don't feel it.  BUt if you have recently purchased a home or someone is wanting to purchase a home, it's another mortgage payment for some between the taxes and the insurance!

My opinion is that buyers lack motivation. If they are in a position that they have to move, well, whatever the insurance situation is, the taxes are, they will buy. (period)

And it goes the same for sellers.......... if they have to move for job or whatever reason, they will lower the price.........

Look in your MLS and you will see that houses are selling......... as an agent we must pinpoint what our potential buyers motivation is and classified them as A, B, C, D so you don't waste your time and gas money.

Good luck

Sagine

In my area, I think buyers are aware of the many short sales and foreclosures and are worried about being in that same position.

Another reason could be that many buyers come from selling homes. If their homes aren't selling, in many cases it's not possible for them to buy.