What Would It Take to Get You to Buy?

by Mark Wellborn

What Would It Take to Get You to Buy?

Kenneth Harney’s column in this weekend’s Washington Post examined the reasons why many prospective home buyers are “sitting on the fence” rather than ponying up money for a new home.

The column pointed to a recent study by the research arm of the National Association of Home Builders that asked self-described “on-the-fence” buyers what was preventing them from buying.

Of the 700 buyers surveyed, 44 percent noted that they were holding out for lower mortgage rates, 41 percent were uncertain as to whether or not they could qualify for financing, and 38 percent expected to see lower house prices.

However, the most interesting aspect of the study was what enticements would be the biggest motivators in getting the respondents to buy.

From The Post:

“The study examined the effectiveness of a [10 percent federal tax credit with a cap of $22,000 in the most expensive markets]. It ranked sixth on a list of 10 features that would pull buyers off the fence — well behind mortgage and price concessions.

The mortgage rate that consumers said would be most effective in convincing them to buy now: a 30-year loan with a fixed 3 percent interest rate.”

This article originally published at https://dc.urbanturf.com/articles/blog/what_would_it_take_to_get_you_to_buy/504


  1. Concentrist said at 11:00 am on Tuesday February 3, 2009:

    I like the idea of a 10% discount off of the current market value in combination with the tax credit.  Market price stll have a ways to go though.  I look at some of the listing prices and still see asking prices more than 100% above purchases price from just a few years ago. I don’t think reality has set in fully in the DC market as some are holding onto to the belief that Obama administration will bring an influx of new buyers to the market.

  1. ET said at 12:50 pm on Tuesday February 3, 2009:

    3% fixed on a 30 year loan? That doesn’t seem to be worth the paperwork for the mortgage company.  I refinanced a few years ago to a 20 year 5.25% and consider myself lucky (it had been a 30 year 7.25%)! 

    Mortgage companies ain’t going to lend money without making more - that is how they make money to lend more money, etc.

Comments are closed.

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