This presentation will help agents with addressing clients when they want to wait to buy or sell real estate.

1. Countering Objections:
“I think I’ll wait to buy/sell.”
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2. Real Estate as an Investment Since 2000
Is it really as bad as everyone says?
You be the judge.
Source: MSN Money.com / Case Shiller
Graphic courtesy of KCM Blog
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3. What the experts say about buying . . .
“It’s an excellent time to buy a house,
either to live in for the long term or
for investment income.”
- October 15, 2011
“Now could be the best time in
history to buy a home.”
- October 3, 2011
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4. What the experts say about buying . . .
“Many buyers who waited for rock-
bottom prices know that now is the
time to buy.”
- November 1, 2011
“It is important for America to
realize that when it comes to
Market Insights housing, now is the time to buy.”
- October 2011
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5. What the experts say about buying . . .
“It’s hard to see the possibility of
losing on a home purchase right
now with these mortgage rates.”
- October 24, 2011
“The previous declines in house prices and the
Capital Economics more recent drop in mortgage rates to record
lows have created an unusual situation in
which the median monthly mortgage payment
is more or less the same as the median rental
payment.”
- October 12, 2011
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6. “I’ll just rent until things get better.”
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7. “I’ll just rent until things get better.”
November 2011 (today) November 2012
Sale Price: $150,000 Sale Price: $142,500 1
Mortgage: $142,500 Mortgage: $135,375
2
Interest Rate: 4% Interest Rate: 5%
Term: 30 years Term: 30 years
Payment: $680.32 Payment: $726.72
Monthly Payment Difference: $46.40
Difference Over Life of Loan: $16,704
Still think it pays to wait?
1 Assumes sale prices will dip 5% over the next 12 months
2 Assumes interest rates will rise 1% over the next 12 months based on NAR economic projections
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8. What the experts say about selling . . .
“While foreclosure activity in the third quarter continued
to register well below levels from a year ago, there is
evidence that this temporary downward trend is about to
change direction, with foreclosure activity slowly
beginning to ramp back up.”
- October 11, 2011
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9. What the experts say about selling . . .
“At this point, we maintain the
expectation that a definitive
bottom will not occur until 2012.”
- October 11, 2011
“The housing market has yet to
demonstrate the fundamentals
necessary to overcome a seasonal
slowdown over the next 6
months, which drives our projected
drop in prices of 3.2% through Q1
of 2012.”
- October 6, 2011
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10. What the experts say about selling . . .
“According to Fiserv, a financial analytics
company, home values are expected to fall
3.6% by next June.”
- October 31, 2011
“The glut of houses in the process of, or
likely to be in, foreclosure is depressing
prices even further. Prices are expected
to drop another 5% over the next few
months.”
- October 14, 2011
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11. What the experts say about selling . . .
“Home prices could dip 6% “Home prices could fall up
to 7% before hitting rock to 7% by the end of the
bottom in early 2012, 2012 1Q, Barclays Capital
according to analysts at JP said in a report to clients.”
Morgan Chase.” - October 14, 2011
- September 9, 2011
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12. “I’ll wait till Spring until the market gets better.”
November 2011 (today) April 2012
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Sale Price: $150,000 Sale Price: $145,500
1 1
Expenses: $10,500 Expenses: $10,185
Net: $139,500 Net: $135,315
Difference: $4,185
Still think it pays to wait until the
market gets better?
1 Assumes a 1% transfer tax and a 6% selling commission.
2 Assumes a 3% reduction in market value over the next 6 months.
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13. Chasing the market doesn’t pay!
Seller wants to test the market
60 Days Seller agrees to reduce the list price
Seller reduces price again and is now
priced at market value from 120 days ago
60 Days
60 Days
Price
Listing expires and
Seller is still not any
closer to selling their
home because their
True Market Value price is still too high
Decreasing by 5%
Time
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14. About the Author & Presenter
Tom Blefko is a real estate broker with over twenty-
five years experience in all facets of the residential
and commercial real estate industry including sales,
leasing, office management, property management,
development, marketing, construction, brokerage and
training.
During the course of his career, he has successfully
closed hundreds of real estate transactions as well as
provided fellow agents with valuable advice during
contract negotiations and settlements.
Prudential Homesale Services Group
4309 Linglestown Road
Harrisburg, PA 17112
Office: (717) 657-8700
Cell: (717) 587-6600
Web: www.prudentialhomesale.com
Blog: www.tomblefko.com
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