Unfortunately, the real estate doom and gloom portrayed daily in the media seems to be overshadowing the fact that right now is really a great time to buy a home. Many houses are reasonably priced or low-priced, sellers for the most part are eager to sell, and mortgage interest rates are low creating the perfect scenario for first-time buyers or people looking to move into larger houses.
First-time homebuyers should absolutely jump into the market before the end of 2008. After the presidential election and when the spring real estate market returns, we are expecting to see home prices rebound somewhat. That’s why we believe that this is the opportune time to get the best deals.
For those homeowners looking to move up into a larger home or into a more expensive location, this is also a favorable time to make the move. Yes, the home that you will sell will most likely fetch less money in this market, but so will the larger home – and that is how you can maximize your real estate investment in this market.
For example, let’s say that if you sell your house in this market you will get $250,000 for it as opposed to selling in a seller’s market where you might get 20% more for your house, meaning that the house would sell for about $300,000. At this point you are seeing a loss of $50,000 by selling in this market. But if the house that you are moving up to costs $400,000 in this market, assuming the 20% appreciation if sold in a seller’s market, that house would cost $480,000. By selling your home and purchasing a home in this buyer’s market, you actually save yourself $30,000 – and as a buyer you have greater negotiating power in this market, meaning you can probably get more favorable contract terms.
The only people who should not consider buying in this market are those folks who are downsizing. But for the rest of us, deals are to be had TODAY!
On another note, if you are planning to go to the Maryland State Fair and would like a chance to win free tickets, CLICK HERE to enter our free drawing. Drawing held on August 20th, so don’t delay!
Wishing you peace, love, and the home of your dreams,
Jeri
