Home Buying in Seattle>Question Details

Shay, Both Buyer and Seller in USA, Mobile, AL

Why should someone buy in this market?

Asked by Shay, USA, Mobile, AL Thu Apr 17, 2008

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38
Don't waste your time asking a Realtor if it's a good time to buy. It was Realtors who were spouting off two years ago that "it was a great time to buy" and "prices never go down." We all know how foolish that advice was. According to Realtors, every day during the past 100 years was a great time to buy OR sell real estate -- and remarkably the same will hold true for the next 100 years.

Realtors may be knowledgeable on current and past prices for their area, but they are NOT experts on future price trends. Realtors are not economists and very few have any business or economic training to speak of. They are SALESPEOPLE. The reality is that they only get a commission if you buy, so they have an incentive to be less then accurate as to their assessments. The few compotent Realtors with integrity would admit that prices are going down in most parts of the country and most buyers could save money by simply waiting for the bubble to further deflate.

NewportFiji
4 votes Thank Flag Link Thu Apr 17, 2008
One of the first questions that I ask my buyers these days is how long do they plan on staying in their house. I had one buyer who said he couldn't be sure beyond 2 years and we ran the numbers and I did pretty extensive research into the area he wanted to buy in ...took into account how the current market was and concluded that it would likely be a losing investment if he bought...so he continues to rent.

From an investment perspective, now is a good time because prices are at a low point ... in the Seattle market, ...barring any more catastrophic market news...many areas are on the way up ...5 houses in my neigborhood that have been for sale for months all sold in March. If that hold true across our general market area, then yes...we may have hit bottom and now would be a good time to buy FOR A LONG TERM INVESTMENT. 2008 prices will probably remain flat with a slow return to a historical normal rate of appreciation in 2009 and into 2010. If you're going to buy and flip ...like i said earlier... you shouldn't buy.

So I guess the short and sweet answer to your question is... someone should buy in this market if they don't care what happens in the next 3-4 years and they're planning on staying in their home for a long time. If you're a home hopper every year or 2 ... or an investor that just wants to flip homes...now is ..for the most part...NOT a good time to buy.
3 votes Thank Flag Link Thu Apr 17, 2008
The wise thing to do now is to wait. More than likely you will see about 20-25% more reduction in prices in the next year or so. Obviously, it is hard for anyone to get home loans now. Also prices are at its peak. Even when prices start to go up, it won't shoot up quickly in days or months. Right now, most people who bought in the last few years got burned ( especially the "investors). Those people will be out of the market for a long time. It will be cheaper to rent. Calculate mortgage Vs rent you will be paying and see the difference.
2 votes Thank Flag Link Mon Apr 28, 2008
Why should someone buy? Why should someone buy in this market?
Separating your question into two parts might result in an answer more tailored to your specific needs.

I have been a real estate agent in Washington state for over 16 years. Long before I chose this particular career, I strongly believed in ownership vs. renting, and not just when it came to a place to live.

In the very old days, phone companies owned the phones their customers used. We were charged a fee (rental) to use them. As soon as that system changed and it became possible to purchase my own equipment, I did so. I did not want to pay someone else for the ongoing use of something I could own. That said, nothing remains the same. With today’s technology making yesterday’s purchase obsolete, I chose to rent my TIVO.

My point is, current circumstances definitely contribute to what works best for an individual at any given time.

Home ownership is very different from buying any other commodity. All of us need a place to live. By paying rent, a renter helps the landlord purchase his property. Why not build equity for yourself instead?

There are actually a few times when renting makes better sense. In a normal market (not the mega appreciation market many people have come to expect) buyers who sold in less than two years had to take money to the closing table because the cost of selling was higher than the amount of appreciation they had accumulated.

If you do not plan to remain in your new home for a few years, now is not the time to buy.

Creative loans have pretty much disappeared from today’s market, so that is probably a non-issue, but if you are strapped for cash for a down payment, work at saving some money. With home ownership comes home maintenance. If your credit is shaky, work at repairing it. Low credit scores mean high interest rates.

Now might not be the time to buy.

If, however, you do not fall into any of the preceding categories, now is a great time to buy. For the first time in a number of years, this is a buyers’ market. When will prices bottom out? I don’t know. But I do know the disappointment of a buyer who has invested emotion and excitement in writing an offer on what they perceived to be their new home, only to learn they had lost out to someone else in a bidding war with other buyers. And, for many buyers, this happened more than once. In the frenzy of the process, sellers, not buyers, benefited.
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Interest rates are low. Not all sellers have come to terms with the reality of today’s market, but the sellers who are truly motivated are making concessions they would not have done a year or two ago. And, motivated sellers definitely include builders. Standing inventory for them creates huge carrying costs. So, especially if you are interested in new construction, this is the time to buy!
2 votes Thank Flag Link Thu Apr 17, 2008
Check out the lively communication on the currently open opinion thread, "Why should someone buy in this market?" Fingers have been flying fast and furiously on this one over the last couple of days.
2 votes Thank Flag Link Thu Apr 17, 2008
Hey..even economists get it wrong as well. To answer the question, people buy and sell in down markets and up markets all the time ...it's because we need a roof over our heads (or to sell the roof over our heads) for various reasons. A couple living in a 1 bedroom apartment that just found out they're pregnant will likely need a bigger place...they can't tell the baby to wait until the market improves...they can keep renting or they can buy. A family where the last kid has moved out and now they're living in a 3000 sqft house with just the two of them simply can't handle the up-keep and maintenance so they need to downsize ...true..they can wait for the market, but often times they don't. An investor who is speculating on the market may recognize or feel that the market has hit bottom and decide to jump in and buy something.

There's always a reason to buy...it's each person's individual's needs and goals. If you don't believe what a Realtor or what the National Association of Realtor's say ...then don't! I don't believe much of what NAR says myself and I'm a member! You gather the information and make your own interpretations. If you want to rely on economists and expert opinions, go google for it and you'll find that among all the doom and gloom stories in the past year about the real estate market, Seattle has almost always been called out as the exception.

Why should someone buy in this market? In our market, our forecasted job growth and influx of people means there will be an ever increasing demand for housing. Some of them will rent, some of them will buy, they all need a place to live. As long as demand is strong, it's a good time to buy.

Yes...we're in a rut right now ...some areas worse than others. As for Realtors always saying it's a good time to buy it's because statistically ....it is! If you look at long term growth of real estate, it's been ever increasing. If you're looking to only buy and flip ....now is a terrible time to do that. If you're looking to buy and live in it and keep it for the forseeable future, ... historically, it's a good investment.
2 votes Thank Flag Link Thu Apr 17, 2008
Homeowners who purchased 2 years ago, when the market was at it's peak, are asking, "Why did we listen to the realtors who said real estate always go up, and if we don't BUY NOW we will soon be priced out forever!"
1 vote Thank Flag Link Tue May 6, 2008
This is a very personal question. Why are you buying? Are you doing this for investment purposes or personal needs. "Someone' is always buying...consider how long you plan on retaining the home and what your motivations are. If you're planning on doing minimum down and only want to keep the home for 1-2 years, it may not make sense. If you're planning on retaining the home longer and it's the home you've been waiting for, then it may be worth your consideration.
1 vote Thank Flag Link Sun May 4, 2008
Now is the perfect time to purchase a home,rental or second home. The Seattle area is not experiencing the recession like the rest of the country. Our home prices are down because of the media. Interest rates are down and there are lots of mortgage programs available. BUY NOW! Call us today!
1 vote Thank Flag Link Tue Apr 29, 2008
Maybe a better question is why not? Interest rates are low, inventory is up, buyers have all the leverage in many markets, so ... Did you ever look at a stock market graph and cirle the point at the bottom where you wished you bought. At exactly that moment, everyone thought the stock was tanking. Wanted to wait out the trend and see if it recovers. The problem is that if you don't buy when everyone else says wait, you miss the bottom. No different here.
1 vote Thank Flag Link Tue Apr 29, 2008
Buyers have the ability to negotiate in some areas 5 - 10% have a seasoned Realtor give you stats and specifics to the area in which you are considering a purchase. Interest rates are great and the market is steady for those who qualify to purchase. Do your home work with a seasoned professional. A Certified Residental Specialist "CRS" or "GRI" would be a suggestion look for these designations when researching for advise.
1 vote Thank Flag Link Mon Apr 28, 2008
1) It's the safest way to protect your future.
2) It's what the millionaires are doing to prosper in the future.
3) It makes sense to buy while real estate is on sale.
4) It's fun!

A side note in our local market, real estate is on sale. I can't speak for the rest of the nation.
1 vote Thank Flag Link Fri Apr 18, 2008
This is being done in another thread too.

http://www.trulia.com/voices/General_Area/Open_Opinion_Threa…
1 vote Thank Flag Link Thu Apr 17, 2008
Buying still makes sense for all the normal reasons, with just one exception. As a buyer you get to pick the home, neighborhood, and all the amenities you can afford. You can't do this as a tenant. You still get all the great tax breaks not available to tenants. You can still make all the improvements you wish to customize your home to your special tastes. Again, these things aren't available to tenants. The one reason that is open for discussion right now is whether buying is also a great investment. It will be in the future, for sure, but you may have to wait a couple years. In the meantime, though, you'll be a homeowner instead of a tenant, so you'll be enjoying many benefits. I believe we are near the bottom of the real estate cycle here in the Northwest. Homes aren't going to get much cheaper, particularly in the best neighborhoods. An added consideration is the great interest rates. Waiting for further price drops might push you into a less favorable mortgage market. Depending on your price range, as little as a 0.5% increase in your mortgage rate could raise the "actual cost" (monthly payments) of your new home and erase any benefits of a price reduction. And finally, there are legions of buyers who are sitting on the fence right now, waiting for a sign that the market has bottomed out. When that occurs you'll be finding yourself competing for the best homes which right now you might get for an offer.
Web Reference: http://www.dondutton.com
1 vote Thank Flag Link Thu Apr 17, 2008
Seattle is a great place to buy real estate, even though it is expense. The market is still strong here compared to rest of the US. The inventory is larger than last year so it's a good time for the buyer.
Large corporations continue to ivest in the great NW creating lots of great jobs. The Seattle area has a good school system, both public and private. It 's a great outdoors area for all ages.
Seattle has lots of different packets of feel good neighborhoods. If you need information on any certain area just let me know. I moved here 18 years ago, so I know what it means to make a change.
1 vote Thank Flag Link Thu Apr 17, 2008
The only people who should be buying is if it makes sense to them, and if they can comfortably afford it. For most people, they should not buy now if they can wait. Real estate, as much as it has dropped, is still far from cheap. I would consider real estate cheap if it drops to pre-bubble level, like about 2000/2001. Though I doubt we will go that low. But this market does favor the waiters. Those who wait will end up with more money in their pockets, or a bigger and better house.
1 vote Thank Flag Link Thu Apr 17, 2008
Shay.....

In our current market there is an abundance of inventory to choose from, prices are lower than in the last several years and interest rates are still at an all time low. I can't imagine why not to buy with all these positive factors.
1 vote Thank Flag Link Thu Apr 17, 2008
Pam Winterba…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
NewportFiji didn't say anything that was factually wrong.
1 vote Thank Flag Link Thu Apr 17, 2008
try this, tell your friends and family you just rented a new house, condo, etc
now try this, tell your friends you just bought a new house, condo, etc
see the difference
and it only costs 2x as much to buy it
1 vote Thank Flag Link Thu Apr 17, 2008
Shay,

James Hsu (below) has it right. It depends on the personal situation and motivation of the individual. Although the market here in Seattle is going down slightly recently, it is still a strong market relative to much of the rest of the nation. If a buyer is looking for the long term of 5 or more years, and they are looking in the low to mid price range, I think it is a very good time to buy. Especially to sell to move up to a larger home. But again, it depends on where you are and what you want to accomplish.
1 vote Thank Flag Link Thu Apr 17, 2008
This is a fantastic time to buy a home or an investment property. Prices are better than they have been in years and buyers are in the driving seat during the negotiation on many listings. Interests rates are great right now, and many mortgage professionals anticipate that they will not be this low much longer. Remember to contact you real estate professional who will be your advocate , will protect your interests, and will negotiate the best deal for your specific situation.

Happy Shopping!
Anni Zilz, ABR
Web Reference: http://www.annizilz.com
1 vote Thank Flag Link Thu Apr 17, 2008
Remember sometime you just need to buy a home. Rates are great and there is lots of selection. If you are looking for somewhere to live....buying a home is a long term investment thats why you take a 30 year loan.
1 vote Thank Flag Link Thu Apr 17, 2008
Great prices near 2001 levels and the best mortgage rates in history. Home affordabilty is at a record high when both are combined.
0 votes Thank Flag Link Thu Jul 29, 2010
The housing market has come down where it's now more affordable, besides the interest rate is great. They are also doing alot of FHA Mortg. and that is putting down very little when holding onto more of your money in your bank.
0 votes Thank Flag Link Thu Jul 29, 2010
The rates are good and the prices are low.
Web Reference: http://www.landsoftexas.org
0 votes Thank Flag Link Thu Jul 29, 2010
FIRST TIME HOME BUYERS:
A $8,000 Tax Credit Provides Outstanding Opportunity for First Time Home Buyers. The tax credit is available for qualified first-time home buyers purchasing a principal residence before December 1, 2009.

SELLERS & NON-FIRST TIME HOMEBUYERS:
Median home prices are lower this year compared to last year. If you sell and buy in this type of market, you may sell for less, but you will also purchase your new home for less. Another important consideration: the mortgage interest rates are at historical LOWS!

REAL ESTATE IS LOCAL:
Remember, real estate trends are LOCAL. The Dallas/Fort Worth area is very fortunate in that our population growth is positive (The Dallas-Fort Worth area experienced the largest population jump out of any other metropolitan area in the country in 2008, according to the U.S. Census reports).

DALLAS/FORT WORTH METROPLEX J-O-B-S:
In the Forbes' annual list of best cities for jobs in 2009, Fort Worth-Arlington was ranked #4, and the Dallas-Plano-Irving areas were rated #5. Throughout the nation, unemployment has risen everywhere. In the state of Texas, however, people are finding that this may very well be the best area to live while waiting for the economy to recover. Recently a list of "Best Cities For Jobs" included Texas having 20 cities in the top 100. Texas not only has more jobs than most parts of the nation, but also very affordable housing. Although Texas has lost jobs in this nationwide recession, the unemployment rate is lower here than in most areas. People are relocating to the Dallas/Fort Worth area for jobs and this provides opportunity for home buyers and home sellers both.

The area added more than 146,00 people between July 2007 and July 2008 as the Metroplex attracted new residents.


BOTTOM LINE:
If you plan to stay in the house for five+ years, now is the time to buy.
0 votes Thank Flag Link Sun Aug 30, 2009
The best answer to that question is "It depends"
According to a Today Show report there are 5 cities which should lead the country out of the real estate slump. They are 1) Denver, Colorado 2) Raleigh, North Carolina 3) Austin, Texas 4) Seattle, Washington 5) San Francisco, California . It is time to buy in those markets because prices are low but starting to move. There is plenty of inventory and interest rates are low. I woul not buy near San Diego right now or other areas that are still likely to drop in value, even though prices are lower than they were a couple years ago. Wait for three consecutive months of improvement in any market.
0 votes Thank Flag Link Sat Aug 29, 2009
Let;s buy a place! You will be able to paint it then becuae you will not rent.

New agent here hoping to help. We will work together.

Real estate never goes down (as long as you hold it long enough) and it is a ALWAYS a good time to buy!

Helping you BUY and SELL the homes of your dreams.....! -NNA
0 votes Thank Flag Link Sat Mar 7, 2009
Quoting from S & A Digest:

House prices way down... "Tons of dollars" in real estate... MBIA in the clear (for now)... Janus is a bargain... Porter is a scream... Home sales: Not as bad as you think...

"Wherever you look, things look bleak," says Robert Shiller, co-creator of the S&P/Case-Shiller home-price indexes. Home prices fell 8.9% in the fourth quarter of 2007, compared with the fourth quarter of 2006. As covered in The Digest, Miami was the hardest-hit major city, w ith an 18% annual decline in 2007. Las Vegas, Phoenix, and San Diego house prices all fell 15%. Charlotte, Portland, and Seattle are the only three metro areas measured by the Case-Shiller index that still haven't experienced year-over-year price drops.
0 votes Thank Flag Link Sun May 11, 2008
What were your goals two years ago? Were they to find a home to move into or to wait two years until it became advantageous? My guess is you were ready to buy a home. Once you bought your home, your equity began to grow. True, the market has slowed a bit, but at least in Washington, very few areas have seen a true decline in home prices. Mostly, we see a decline in the growth rate from double-digit growth down to about 3% overall. The fact that you bought during a high-growth phase means if you'd waited for a short time period, say 6 months, you'd probably have paid even more for the same home. If you'd waited 2 years to buy, your property may have gone up in price by 3% and you might be able to negotiate the price down to what you paid 2 years ago. When you contract with an agent to buy a home, that's what they're going to do for you. Real Estate cycles last 7-10 years. Now we're in a Buyer's market. In some areas of the country, that means great bargains. But here, where prices are still going up, though slower than before, your choice is the same as it has always been - buy now and pay today's price, or wait and pay a still higher price. One way to break this cycle is to use the equity in your home to buy real estate. You can either generate cashflow, rehab, or lease-Option either property and live in the other. But you were right to listen to your agent 2 years ago. Real Estate is now, and will always be, the safest and most beneficial investment you can make. You just need some advice on your options, so you can make some Lemonade!
Web Reference: http://www.ziprealty.com
0 votes Thank Flag Link Sun May 11, 2008
Because homes are on sale, and money is cheap!

That's why it's called a "Buyer's Market."

Homeowners who purchased 2 years ago, when the market was at it's peak, are asking "Why did we purchase in a Seller's Market? I wish we had waited until now!"
0 votes Thank Flag Link Tue May 6, 2008
When this buyers window is gone it is gone. Where are you considering buying?
0 votes Thank Flag Link Mon Apr 28, 2008
Mark, you’re classic. You point out my spelling error while relying on the use of such terminology as “doo doo” and “gonna” to make your point. I am sure you are pleased with your spelling ability. How’s your grammar? I found several grammatical errors in your writing which I would be happy to flag for you. Note to grammar, spelling and punctuation police, this is an informal arena and the content of discussion should be taken in such light.

Your assertion that economists could not see a bubble forming in the real estate bubble is devoid of merit. In fact, Greenspan spoke of “froth” in the real estate market as early as 2003 -- quintessential Greenspan speak. Mark, with your excellent rhetorical capacity I am sure you understand that forth is a material essentially comprised of small bubbles. Volker was speaking in the early part of this decade questioning financial markets and the Fed’s ostensible election to prop the real estate market with actions which were likely to lead to an inflationary period and the devaluation of the dollar. Bernanke inherited the problem.

It was the quack “economists” at the NAR , David Lereah and Lawrence Yun, who apparently never realized that the real estate market could slow down.

There is little question that historically it make sense to purchase a home at some time. But, references to previous gains have little applicability to the present discussion. The question is not whether it made sense to purchase in 1975, 1985 or 1995, the question is whether someone should purchase today. The alternative is not to always forego purchasing, but whether it makes sense to wait a few years and purchase when prices decrease as the housing bubble deflates.

In my opinion, an implication that housing can create wealth is misguided under current market conditions. Ask someone who purchased in 2006 or 2007 in most parts of California how much wealth they created with such purchases. The answer is obvious from the record level of foreclosures and defaults the state is experiencing. Those purchasers would have been better served by renting and ignoring the hype created by realtors who claimed real estate is always a great “investment” and prices would only continue to rise.

In my opinion, there are ample rental opportunities to wait out this deflating real estate bubble. This is especially true to the extent someone considers making a purchase today with an adjustable rate or other non-traditional loan with no money down. With that said, if someone has sufficient assets, they may not care about whether their home decreases in value over the next few years and there are benefits from home ownership. I don’t disagree that over the long term values will increase. But as Keynes once said, “in the long run we are all dead.”

NewportFiji
0 votes Thank Flag Link Thu Apr 17, 2008
Everyone should buy in this market simply because that's what people have been doing for years. That is how American's build wealth. The rich buy everything when it's dirt cheap; pun intended. It's that natural cycle of investing. The decision on wether or not to join the cycle is up to you.
0 votes Thank Flag Link Thu Apr 17, 2008
For the most part, people with children and pets who are selling a house want to buy another one. They don't consider renting. Though I am seeing more people selling and renting that I have in the past.
0 votes Thank Flag Link Thu Apr 17, 2008
I would like to take issue with Newport Fiji in that I think of myself as a competent agent and not a compotent one. In fact, I think of my self as a competent speller as well.

Yes, prices are going down in most of the country and where the bottom is, not even Greenspan, Volker or Bernake can tell you. Remember that even Greenspan was late to acknowledge that the doo doo was going to hit the fan until it was too late. You don't have to be an economist, however realize when a hard rain's a gonna fall.


It does sound like Mr. Fiji is bitter and I can't address where that is coming from other than California is a tough place to make it as an agent right now.

I have two points:

The first is that if you are going to stay in your home for a minimum of 5 years, it is a good time to buy even if prices drop a bit more. Homes were never meant to be short term investments, that is what they have become in the past few years.

As an agent, I tend to point my finger at the banking world and the lack of regulation going on in that world. That being said, we agents have to shoulder some of the blame for the reckless run up in prices over the past few years.

My second point is that if your question is actually "Why should someone buy in this market in Seattle?", there are many reasons. I would start with a book that just came out called "Who's your city?" by Richard Florida, which explains why socially liberal, creativity friendly cities like Seattle are attracting much of the world's capital (both financially and intellectually) and how it keeps our economy strong.

We have weathered the storm (no pun intended) up here in the rainy Northwest because of our diverse job market and strong economy. If you look at our history, we have never had the wild swings in home prices like much of the rest of the country, and that is proving true today. We have had a slight dip (1%) by most accounts, which most cities would trade their favorite sports team for at this point.

While we all have felt a slowdown in the market up here, homes that are priced right and ready to move in are selling and most agents I know are still busy.

I hope this helps. Let me know if you have any other questions.

Mark J Tillett
mark@lakeforestmark.com
http://www.lakeforestmark.com
0 votes Thank Flag Link Thu Apr 17, 2008
Should You Wait to Buy in a Down Market of Falling Home Prices?--Everybody wants to know how to best time the market when buying a home. It's just natural. Especially if you're thinking about buying in a down market where homes prices are declining. You wonder how low they will go and whether you should wait, right?
Some Home Buyers Should Buy Immediately--You're probably thinking: "Of course, she would say that. She's a Realtor, and agents always say 'Now is the best time to buy'." Well, here is why:
• If you are a seller who wants to move up to a more expensive home in a down market, now could be the best time. The longer you wait to sell, the lower the price of your home could fall.
• If you can arrange for alternate housing, a smart strategy is sell now, wait a few months, then buy your new home.
• If you sell and buy simultaneously, you'll still be ahead of the game because the price reduction on the purchase is greater than the loss on the sale.
Consider the "Loss" on Selling Your Present Home
For example, say your present house is worth $300,000, but because of high inventory and few buyers, you must reduce your price by 10%. So, instead of receiving $300,000, you would get $270,000 and "lose" $30,000.
Consider Your Real Profit--Say you bought this home 10 years ago and paid $100,000. You're still ahead $170,000, less costs of sale, aren't you? (This ignores monthly payments, but you would make those if you were renting, too.)
Consider the "Savings" on Buying Your New Home--If you are planning to move up to a $500,000 house, which is located in the same distressed market, you could probably buy that house at that same 10% discount or $450,000. This would mean you had saved $50,000.
Review of Selling and Buying Numbers--
1. So you "lost" $30,000 on the sale of your home
2. But you "made" $50,000 on the purchase of your new home
3. Doesn't that put you $20,000 ahead?
Don't Forget the Impact of Interest Rates--
Which way are interest rates moving? Are they moving up or moving down? If interest rates are near an all-time low and beginning to inch upwards, waiting could cost you more than you would think. You might not be able to afford to buy a home at any price.
• FACT: Each 1/2 point increase in your interest rate gives you $25,000 less in purchasing power.
• FACT: Each 1 point increase in your interest rate gives you $50,000 less in purchasing power.
• FACT: Each 2 point increase in your interest rate gives you $100,000 less in purchasing power.
Look at the Differences Among Purchase Prices versus Interest Rates
If you put down 20% and qualify for an 80% loan, here are your principal and interest payments on the following purchase prices:
• $425,000 sales price, at 8.25% interest, your payment is $2,554.
• $450,000 sales price, at 7.75% interest, your payment is $2,579.
• $475,000 sales price, at 7.25% interest, your payment is $2,592.
• $500,000 sales price, at 6.75% interest, your payment is $2,594.
• $525,000 sales price, at 6.25% interest, your payment is $2,586.
The payments are almost identical. However, the home you can afford to buy a 8.25% is $100,000 less than the home you can afford to buy at 6.25%. If you wait for prices to further decline, the perceived value could be lost due to higher rates.
A good strategy is to weigh all the pros and cons of real estate ownership before making the decision to buy or sell. Don't panic over newspaper headlines. Make an informed decision. Run your own numbers.
Cassie Davis, Colleyville (DFW), TX
Source: E.Waintraub
0 votes Thank Flag Link Thu Apr 17, 2008
Wow, NewportFiji sounds really bitter. While I am not a blogger, he really struck a cord here and I feel I have to respond. I am really sorry for what ever bad experience you had in the past. I have counciled many clients NOT to buy a specific home. That is my job as their advocate. As a real estate professional, I can tell you that most of the producing agents in my office, and that I associate with have business degrees (or a 4 year degree of some sort) and many have graduate degrees, in addition to the extensive training that is required, by law, in order to maintain our licenses. While most of us cannot predict the future, most do use market knowledge to council our clients. By the way...if we worked ONLY for the commissions we would not be in business long. The best businesses are built on referral. All the best to you! AZ
0 votes Thank Flag Link Thu Apr 17, 2008
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