Home Sales: Why Buyers Have Cold Feet

Interest rates are at historic lows and home prices have been spiraling down in most markets for the last year. It has never been a better time to buy a home. But still we hear the same story from Realtors across the land: Even qualified buyers have cold feet. Buyers are sitting on the fence, waiting.

A high-profile plastic surgeon in Dallas had been hovering over a $4,999,999 home. Qualification and income were not a problem, as he had a large cash down payment from the sale of a previous home. I am told he put a bid on the manse, extended his option period twice, then backed out of the offer at 5:01 p.m. on a Friday night. I mean, if plastic surgeons with cash are backing out of contracts, isn't everyone?

There are several things sellers and their agents can do to warm up buyers into signing on the dotted. This is not a market for the lazy, uncreative or faint of heart. Serious sellers need to be able to respond to buyers' fears: