Home Buying in 44709>Question Details

Sillyd7, Home Buyer in 44709

Is it smarter to sell now and buy now or wait until the economy comes back up?

Asked by Sillyd7, 44709 Thu Feb 17, 2011

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27
Well, it's smarter to buy before prices go higher, and smarter to sell before prices go lower!
1 vote Thank Flag Link Thu Feb 17, 2011
The way today's market is, right now is not the time to sell. The people that just bought a home a couple of years ago are the most unfortunate. If you need to sell, how much money do you owe on your mortage? In todays market home values have dropped drastically. How much will you make or lose by selling? If your not losing a whole lot, the flip side is that right now is the best time to buy. Inventory is high, interest rates are low, a great advantage for buyers.
0 votes Thank Flag Link Wed Mar 2, 2011
I agree with Ann 100% You can get more home for the money and interest rates are great!

Lori Hair
Remax Crossroads
0 votes Thank Flag Link Fri Feb 25, 2011
It all depends on your personal goals and financial situation. If you are able to make the move without going in the hole and it makes sense, then go for it. Don't wait for life to happen - live it!
Interest rates are low, but on the rise. If you are moving up (buying a higher priced home), take in calculation the hit on the sale of your home (as opposed to what you would sell for in a 'better" market), but also take in consideration how much less you are paying for your new home today.

Some other things to think about: Be careful not to get stuck with two mortgages for a long time, and if you do, rent out your old home so you have some income from it.
Think about your job security and make sure you are able to make your higher payment every month.
0 votes Thank Flag Link Thu Feb 17, 2011
Actually that is dependent on your long term investment goals. It's a Buyers Market now, and properties are selling way below their appraised values. If your financially secure, this would be the time to buy a home & accumulate investment properties. Some Clients have lost on the Sale but benefit on the Buy, others have
benefited on both sides, depending on the purchase they made. Remember Interest Rates are Low! When the market is down, you want to purchase, because when the market increases, so will the property prices, interest rates, taxes etc. The housing market is continuing to drop in price and until the employment rate goes back to normal & confidence among home buyers increases, prices are expected to decline furthur. This is a slow drop, that has not reached the bottom in most markets. Eventually of course prices will stabilize but it is hard to predict when. Real Estate has always fluctuated over the years & these declining markets prove the most financailly beneficail to both Buyers & investors!
0 votes Thank Flag Link Thu Feb 17, 2011
If we truly knew the answer to that question we would be famous and have lots of followers:)
0 votes Thank Flag Link Thu Feb 17, 2011
it is smarter to wait if you can.
Web Reference: http://www.shortsalenyc.com
0 votes Thank Flag Link Thu Feb 17, 2011
If you have a home that you want to sell and then you want to buy your dream home; now is the time to sell. Interest rates are low now, but are on the rise. The house of your dreams may go down in price a little bit in the future, but the interest rates will go up which means your payment will be more than if you bought the house at a higher price, but lower interest rate.
Web Reference: http://www.stacy-nelson.com
0 votes Thank Flag Link Thu Feb 17, 2011
I have to disagree with most that say to sell and take a hit because you are going to get the same or better when you buy. WHAT ??? I know that being a broker and saying what I'm saying is frown upon, but saying to people things of this sort is what makes our industry rate so low. There are many factors and variables to consider when you sell in this market, and taking a hit because the other seller will take a hit as well is not one of them. Say you can draw sufficient equity on your current property to put as a down payment on a property YOU REALLY WANT. Then rent out your previous property and not take money out of your pocket to make ends meet on your rental, maybe even make a modest profit. If renting your unit means losing money every month then it would make no logic to do so.

If this is not a realistic scenario for someone and the need for a larger space is paramount or you must relocate because of a new job and you just cant see yourself as a landlord, then those are issues that dictate selling and buying without any financial gain. Maybe my advice applies more to the larger cities, but I just can't seem to understand the logic of some of these answers.
0 votes Thank Flag Link Thu Feb 17, 2011
Best advice I can give. Buy within your means. You don't want to be house rich and cash poor. Meaning your monthly payment should be comfortable enough for you that you don't feel like your in a pinch if you want to go out and have some fun on the weekends or spoil yourself every so often. While home prices are low and rates are low it makes sense to buy if you buy within your means.
0 votes Thank Flag Link Thu Feb 17, 2011
I am going to answer your question the way I view the market. Yes, it is a good time to sell now and buy for many reason. First, while you may take a hit on your current home, you will get the same deal or better when you buy your new home. The deals in the real estate market are unbeliverable with short sells and foreclosures. Interest rates are very low. Seller are now making reverse offers to buyers to try and get them to purchase their property. If you wait till the economy comes back, you will miss out on the deals. You need to weight the decrease on your home, vs what you can buy.
0 votes Thank Flag Link Thu Feb 17, 2011
As it is with buyers and sellers, so it is with real estate professionals: You can make a good argument either way.

If you buy, prices will need to increase about ten percent for you to just get your money back in the event you had to sell. On the other hand, if you're going to be in the home for four or five years, so what? If you're a seller, you're pretty much stuck with the market we're in. But you will be buying into the same market.

Mortgage rates are pretty good. If they go up another point or so, prices will probably fall a little.
0 votes Thank Flag Link Thu Feb 17, 2011
If you are upgrading by all means get moving while the interest rates are low.
0 votes Thank Flag Link Thu Feb 17, 2011
The answer you are looking for can only be best answered with more information provided. Many factors should be used to best determine what is the best thing for you to do. Here are 3 things that you should think about.

1) What is your personal financial situation. Do you need the money now, etc.
2) What is your capital gains tax on the sale of the home, if any?
3) Can you afford to take financial risks at this time?

Your question almost sounds like you are thinking of selling now to buy now, we call that a move up purchase. If that is the case, then you should look at the numbers. You might be selling for less than what you think your home is worth. The benefit is that if you are buying a home to replace the home you sold, it might have gone down in value more than the home that you are selling.
Web Reference: http://www.frazzanoteam.com
0 votes Thank Flag Link Thu Feb 17, 2011
Prices are down and rates are still great, but climbing. Now is the time to buy and sell. You may not get exactly what you want for your home, but you'll make up for it on the buying side.
0 votes Thank Flag Link Thu Feb 17, 2011
If you wait till the economy comes back you will be paying a higher interest rate. Right now rates are low and you could afford more house.
0 votes Thank Flag Link Thu Feb 17, 2011
I myself am liquidating some of my real estate assets. It depends on what your short term goals and options are. I do not listen to the news or other housing reports that are trying to boost the economy. I base my decision on what I see on a daily basis. While it may seem that the time is now to rush out and buy, I am still seeing substantial drops in values monthly in my market. If you can sell now and hold off to buy until the bottom truly drops, I feel you would benefit in the long run.
0 votes Thank Flag Link Thu Feb 17, 2011
Research has continued to show that NOW is the best time to sell. If you are even thinking about selling the SOONER the better. The housing market is in general continuing to drop in price and until the employment rate goes back to normal and confidence among home buyer goes back up. If interest rates go up, prices are expected to drop further. This is a slow drop we are seeing however it has not reached the bottom in most markets. Eventually of course prices will stabilize but it is hard to predict when.
0 votes Thank Flag Link Thu Feb 17, 2011
If you are moving up it may be a good time. When the market comes back the new higher value home will increase more than the current home. The best reason to ever sell or buy is because of need or want. If you are outgrowing your home, you have increased your earnings and can easily afford a new home, or some other situation, selling and moving now may make sense. Also, over the next year the rates could move up and the cost of the new home of your choice could be put out of range. 'Now is the time to buy' is not always true. Ask why is now the the time for you. Think it through based on your situation.
0 votes Thank Flag Link Thu Feb 17, 2011
Dear Home buyer,

The decision to buy /sell now or wait is usually influenced by the type of local Real Estate market you are in. Buyer's markets exist when there are many homes on the market and few buyers. If the number of homes on the market increase, it's likely the days on market number has increased as well. That puts home buyers in a better position to negotiate. Seller's markets exist when there are many buyers competing for a small inventory of homes for sale. This is when you will see multiple offers for one home. When this happens, the home will most likely sell for more than the list price.

Right now, although we are technically still in a buyer's market, we are beginning to see market values rising for homes that are in desirable areas and in great, "move in" condition. Buying a distressed home in poor condition can be a nightmare for the first time homebuyer. They usually require many repairs and special rehab loan financing, like FHA 203K. After touring these distressed properties, buyers tend to recognise why they are better off buying a home in better condition and for a higher price.

Markets can be isolated, or as we call it a "bubble"- properties that have retained their market values and don't seen to be affected by the economy. These are usually more affluent neighborhoods, such as golf course communities, lakefront properties, etc. So, in essence, it all goes back to the property/area.

Making a decision to rent or buy can also depend on many other factors, such as how long you plan to stay in your home. If you are planning on buying a home and living in it for less than six years, you may be better off continuing to rent. Lender fees, Closing costs, taxes and home maintenance are all expenses that come with being a home buyer.


Best wishes to you in your home buying efforts!
http://www.ChristineVick.com
0 votes Thank Flag Link Thu Feb 17, 2011
I'll keep it short...look at those properties that are priced well below what "the real market would bring" for that area, then buy there. If you are not going to reside in the property and are able to draw income after all your expences then this is a no brainer. Unless you have some financial hardship or you are an experienced investor do not sell at this time. The market is saturated and unless you live in a sought after area with a low inventory, then selling is not your wisest choice.
0 votes Thank Flag Link Thu Feb 17, 2011
If I were moving UP I would definitely sell now and buy. If I were downsizing, I would have to look into my own situation and see if now was the time. If you are downsizing or making a lateral move and think you're giong to have to sell in the next couple of years I would do it sooner rather than later.

Since I can afford my home (paid off) and it would cost me the same to live anywhere else, I'm staying where I am.
0 votes Thank Flag Link Thu Feb 17, 2011
Sillyd7;
The smart thing is to do whatever fits into your current situation in life. Real Estate is not the end-all or be-all with everything......if it will make you happy to move into a new home and a new location than do so.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Thu Feb 17, 2011
If you ar ein a position to be able to sell, then you can more than make up for it with the incredible price you will pay on the new home.

Please see my blog Is now the time to buy?
0 votes Thank Flag Link Thu Feb 17, 2011
With interest reates rising now is still the best time to buy and sell. The increase in home vaues may not come back for several years, so while the values are lower now you are getting the best value.
0 votes Thank Flag Link Thu Feb 17, 2011
People forget that even though they may be selling low they are also buying low. Interest rates are on the rise also. When the economy improves so will home prices, so you may sell higher but so will the homes you are looking to purchase (at higher interest rates).
0 votes Thank Flag Link Thu Feb 17, 2011
Speaking as a Agent, and seeing results first hand. I do believe you can get a great return.. Even if you loose money on the sale.. you will gain on the buy.. However some sellers are even getting their price. and still getting a great deal on the buy and the intrest rate is so low.. that this is the best time the best all time low time to buy sell or do anything with your home.. If your thinking the key to selling, is pricing, and how is the agent going to make your home stand out? because you really only get one shot to sell your home.. its so possible.. go for it and you will be so happy you did! Ann Norton annsellsohio.com
0 votes Thank Flag Link Thu Feb 17, 2011
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