Home Buying in Fargo>Question Details

Randall Weav…, Home Buyer in Fargo, ND

First time prospective buyer in an unchanging housing market...

Asked by Randall Weaver, Fargo, ND Fri Sep 28, 2007

It's been my observation that the housing market here in Fargo, ND has been relatively unaffected by the housing boom and recent subsequent slump. So what are the pro's and con's of a first time buyer in an environment like this - especially considering the fact that I don't know if we'll even be here in 4-5 years?

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First, I always recommed to buyer that if they cannot see themselves living in a home a minimum 7-10 years, don't buy. Purchasing homes should be long term investments.
1 vote Thank Flag Link Wed Jul 8, 2009
You my friend are one of the lucky ones! Having traveled my entire life and moved every 4-7 years, I can relate.

My only piece of personal advice would be to buy a home that you know will turn over quickly should the time come. I bought in a very small town, but it was a purchase that netted me a great return. Why? Because I did my homework. I knew the "house" itself had a reputation - and the townfolk loved it.

Find a good realtor that will show you around. Let them know what your trepidations are. Look for that home that has been around awhile but has a good reputation. (Yes, homes have a reputation!) Upkeep is a must, modern upgrades essential. But never never lose the integrity of the original homes luster.

If there is something like this in your radar screen - go for it. You will love living in a home with a history and being a part of that history makes it even more special. If time comes, and you must sell -- the house will sell itself.
1 vote Thank Flag Link Sat Sep 29, 2007
Hi,

Is it highly likely you will leave in 4 years, or a moderate possibiity? Ask a Realtor to give you historical info on housing trends for several years back. I believe you are saying that the Fargo market has been stable for many years. While the past is no guarantee of the future, are there any indicators of substantial changes in the next few years?

If you can do a 15 yr mortgage, you will come out in 4 yrs with equity, while obtaining deductions for your mortgage interest.

The link will take you to a rent vs buy calculator. From this page, you can also access other calculators that might be helpful in your evaluations.

http://mortgages.interest.com/content/calculators/rentvsbuy.asp
1 vote Thank Flag Link Fri Sep 28, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
You pose many questions. If you are indeed a short-termer for a real estate purchase you must address a number of issues. What is the performance of the market in Fargo, ND? Has it been flat for the past few years? Going up at 5,10,15% per year? You may wish to hook-up with a fairly aggressive adjustable rate mortgage program with a fuse about 5 years out. A 30 year fixed rate loan will have a balance approaching 98.9% at the end of 5 years. A 15 year amortized loan someting like 85%. An interest only loan -0- equity build up but total write off (contact CPA for how this would apply to your situation). But why do you wish to buy? I think any first timer in this market should ask this question of themselves and be very realistic. If you're thinking you'll make a profit in 4-5 years guess again! But if you want to get out of the renting game and move into a "HOME" then buying is always a good plan. Sit down with a solid mortgage professionala and explore your opions in conjunction with an equally good Realtor. Remember--"the best laid plan of mice and men oft go astray!" Good luck!
1 vote Thank Flag Link Fri Sep 28, 2007
Hi Randall
As a realtor and real estate investor who flips her own house every two years, I have highly recommend to my children to take advantage of the first time buyers credit, as long as that market seems stable. We certainly are not thru these turbulent times but I think Minot, ND is going to stay strong for quite awhile yet. I'm not as familiar with the Fargo market but real estate has been good to me over the years.
You would have to hold the house for 3 years.
It's a big decision to make. Let me know if there is anything I can do to help.
Brenda Larson
1st Minot Realty
701-420-2000
0 votes Thank Flag Link Wed Jul 8, 2009
Hello Randall,


Are you related to Ryan Weaver from Devils Lake, ND?

I can help. I am a First Time Home Buyer Instructor for Family Life Credit Services. We not in a boom nor a slump. We have remained very steady with a slight price adjustment upwards in value in the past 2 years.

You have the chances of the Tax Incentive and a new one brewing in the mix of maybe $15,000. Its all small talk right now. Let me know if you want any help and I can certainly get you pointed in the right direction. Thanks again for the question!!!


I would certainly like to help. Please email me and I can get all of the questions you have answered!


Sincerely,

Dave Werth
218-790-7653
Kvamme Real Estate
davew@kvammerealestate.com
http://www.NewRealEstateProperty.com
0 votes Thank Flag Link Tue Jul 7, 2009
Minot's market is still going strong. We have another squardon of Air Force Base personnel coming this summer. Great time for that first time homebuyer.
0 votes Thank Flag Link Tue Jun 9, 2009
Hello Randall

My name is Dave Werth, Real Estate Agent for Kvamme Real Estate in Fargo, ND. I can certainly answer all your questions if you need some help. 218-790-7653

The market here is strong, vs. what you are hearing around the nation. Actually statistics show the market here in the top 25 cities in the US for real estate growth and return on your purchase. We are in a market that shows signs of property prices that of 2 years ago, but certainly not down below the prices then. Depending upon the area and when you buy, you will certainly come out shining! We aren't affected by the boom of anywhere, being closest to Minneapolis, which has a number of foreclosures. ND is actually one of the least amount of SubPrime loan states which meant either better credit, or better income, or housing that is afffordable. I guarantee you can take a guess at giving yourself a 4-7% gain on your market value each year you live here. We are in a great market, and you are lucky to be here. The housing prices are a third of any major city, as the work ethic of the area and saving money being frugile people certainly is true. If you have any other questions or need me to do a CMA on your property, let me know and I can get your house value for you at no charge!

http://www.NewRealEstateProperty.com
Dave Werth - 218-790-7653
davew@kvammerealestate.com
0 votes Thank Flag Link Mon Sep 22, 2008
If you cannot concretely decide that you are going to live in your current location for at least 5 years, rent! The market is too unpredictable if you are looking at less than a five year range. Homes are assests, not flipping projects! Be Blessed.
0 votes Thank Flag Link Fri Sep 28, 2007
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