Has the market "bottomed-out"? Is NOW the right time for me to buy?

Asked by Alana Damesworth, Las Vegas, NV Fri Sep 9, 2011

I truly believe that with prices of homes being #1 cheaper than anywhere else in the world(yes the world!), and #2 cheaper than they were in the 90's it really IS the right time to buy. What do you tell potential buyers who are scared to buy right now in the hopes of trying to help them not miss an opportunity of a lifetime?

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74
Annmail1, Home Buyer, Princeton, NJ
Mon Sep 19, 2011
As a buyer who has heard many people say it is a great time to buy, I jumped in, and made an offer on a property in my development that I had my eye on for a while. Well, the deal fell through at the mortgage stage, even though I offered 20% down, and have a credit score of over 800. My realtor said it was the 3rd deal she's had fall through, this past summer. The banks are being waaaay too hard on borrowers like me. I never thought I would have a problem getting a mortgage. I own my condo outright, and have significant investments, but apparently all that matters is your income to debt ratio. I did not feel like liquidating any of my assets in order to buy that house, and I feel like everyone lost out on the deal. The seller is now screwed, the listing agent is going nuts, and i had to pay $2,300 along the way, in fees, etc, just to end up NOT buying a house. From a buyer's perspective, it's still a crappy time. At least that's how I see it. If you can't get a mortgage, who cares what the rates are?!?
3 votes
Don Tepper, Agent, Burke, VA
Fri Sep 9, 2011
Has the market "bottomed out"?

Maybe. I doubt it. I expect in many areas it'll go lower.

Is NOW the right time for you to buy?

I don't know. I don't know your finances. I don't know your employment status and job prospects. I don't know what your health is like. I don't know if you've got kids who'll need tuition paid in a few years. [I know, it's your clients, not you. But you asked if it was the right time for you.]

I seldom react as negatively to such poor, off-based advice as you've already received. Let's rip a few of them apart:

COMMENT
"With prices lowest in 40 years and (even better) lowest interest rates in decades, how can purchasing a home go wrong?"
RESPONSE
What if next year "prices are the lowest in 45 years"? That is, what if prices continue to decline? What if interest rates remain where they are, thus providing no advantage to buying now versus a year from now? And let's look at the ways purchasing a home can go wrong. The buyer loses his/her job. The buyer is transferred by his/her employer. The buyer or partner/spouse become ill. Or they're doing just fine, but a nearby company goes through a wave of layoffs and a couple of their neighbors lose their homes. Don't you think that might depress values?

COMMENT
"Low interest rate and concessions paid by sellers make purchasing a home a heaven for buyers."
RESPONSE
So would you race out and buy a $35,000 car you really didn't need just because you can get low interest rates and some sort of rebate? So would you race out and buy a $3,000 big-screen TV just because you're offered 0% interest for 12 months and free hookup? And let's remember the pre-bubble burst days of 2006 or so. You could get those zero down loans, even cash back at settlement, and negative amortization loans. That sure was heaven for buyers. At least until things went wrong. Just because you can buy a big-ticket item easily doesn't mean you should. And it doesn't mean it's the right thing to do.

COMMENT
"I also show buyers what they can purchase in the current market for less than they are paying in rent."
RESPONSE
I'll bet you can. That's exactly the situation that existed in 2006 as well. That has nothing--absolutely nothing--to do with whether buying is the right decision. Back in 2006, I was trying to lease-option a property. Market rents were $1,300 a month. But with the financing available then, comparable units were being sold with the initial mortgage payments being $900. If someone had done the lease option (or just rented outright), they would have paid about $400 a month more to rent . . . for about a year. Then the ARM kicked in. Meanwhile, if they'd rented, at worst, for that first year, they'd have paid an additional $4,800 in housing expenses. If they bought, they saw their $275,000 purchase decline in value to about $80,000. So you tell me, which is better: Paying an extra $4,800 in housing expenses or being upside down by $195,000?

COMMENT
"If you like the property, do you really want to look back and say 'I should have bought that house then.'"
RESPONSE
Fair enough. But there are plenty of people looking back at their purchases from 5 years ago and saying "I shouldn't have bought that house then." Even houses they liked.

What do I tell potential buyers who are scared to buy right now? It all depends on their circumstances. But I do tell them: "You have a right to be scared. Yes, interest rates are low and housing prices have come down. But we really don't know where the economy is going. We don't know if housing prices will go lower . . . or when they might recover. What you have to do is examine your own situation. If you're comfortable buying--if you can afford it financially and you'll be able to sleep at night if you buy--and if you plan on living there for at least 6 years and the house meets your needs, then you should consider it.

Remember: We're AGENTS for buyers [or sellers]. We do what they ask us to do. I agree with Bill's comments. We can present the information we have (all of it, not just one side of the story), and then we should allow the clients to make their decisions.
3 votes
Ron Thomas, Agent, Fresno, CA
Fri Sep 9, 2011
BOTTOM OF THE MARKET
There has been a lot of speculation and negativity about when the BOTTOM will occur.
The BOTTOM will not be heralded by a Town Crier, walking around, shouting “The Bottom has been reached!”
The BOTTOM will not be accompanied by an article in the Wall Street Journal or New York Times, announcing “The Bottom happened yesterday at 4:30”
The BOTTOM will be completely different for you, than it will be for everyone else.
The reason for this is that you will not be buying the MARKET; you will be buying one house!
There is a fixation among some Buyers, that they be able to tell everyone that they got the absolute BEST price in the world! (I’m sure you know people like this.) This obsessiveness will surely not be rewarded, because there will always be someone who got a better deal.

There is a very old saying that; “To have a good sale, the Buyer had to have been willing to pay more, and the Seller had to have been willing to take less.”

The truth is, when you buy that house, any house, you are establishing the BOTTOM of the MARKET for THAT house. The clock starts on that investment. And considering that Real Estate is a long-term investment; if you can look back in five years and see that you made a good investment….

This whole controversy must take into consideration what you are buying:
If the object-of-your-affection is a Home for your family, then your priorities are skewed if you are obsessing on the Bottom-of-the-market: You are first, last and always buying a HOME for your family; complete with Security, a good neighborhood, good schools, 3 bedrooms, 1647 square feet, a wooded backyard, a 2 car garage, etc.
Sure you want to make a good buy, but that price should not be on the top of your list: Would you be happier in a crummy, crime-ridden neighborhood, with a house that is falling down, BUT, you made a great deal! Or, would your rather have the best house on the block, where you don’t have to lock your doors at night, and your schools are the best in the State, for a good price? You choose.
3 votes
Bill Eckler, Agent, Venice, FL
Fri Sep 9, 2011
I believe, nothing we say or do as agents can make a potential buyer come to the understanding that "now is the right time."

The "right time" varies from person to person, location to location, and opportunity to opportunity. This is truly a decision that people need to come to on their own merit. We can simply present the facts, providing them with information and options.....the rest is up to them.

As an effective real estate professional should our focus be to convince people to make up their mind? I believe in providing buyers with the tools to come to their own understanding.

Respectfully,

Bill
3 votes
Don Maclary, Agent, Virginia Beach, VA
Sun Oct 2, 2011
Even if homes go down another 10% that has less impact then interest rates going up. The rate makes it time to buy the price is the bonus.
2 votes
Mack McCoy, Agent, Seattle, WA
Sat Sep 17, 2011
- missing an opportunity of a lifetime?, sounds eerily similar to what agents were saying in '04, '05

Yeah, people have been saying it forever, and often, they're right.

Can you imagine wanting to buy your own home in 2004 but being scared out of it by listening to people telling you, oooh, the market's ready to crash, you'll lose your shirt . . .

I know Florida's down 20% since then, but, my goodness gracious - how many tenants have had to move because either their landlord sold or wouldn't maintain the property well enough?

We buy homes homes because of the lifestyle it affords. We invest in real estate based on the return, and I don't know about Florida, but rents are higher today in Seattle than they were in 2004.

Here in Seattle, we're a little bit above 2004 values, so if people sat on the sidelines until today, they'd've been renting for seven years instead of paying down their mortgage; I figure they'd've paid off almost 10% of it so far. I suppose they could rent for another seven years . . . why not, they'll be young forever, won't they?
2 votes
Tom Kimbrough, Agent, Maitland, FL
Sat Sep 17, 2011
Alana,
I'm in Florida, so I speak for this area although the principle of what I say should hold true in Las Vegas. If you buy now at a 4% rate (assuming you're not a cash buyer) and the property goes down in value say $5,000 in the next year or two, are you any worse off than if you rented and waited and then had a higher mortgage?
2 votes
BredyHeron, , USA, Mobile, AL
Tue Oct 4, 2011
A friend is fond of quoting a saying: "You can drive a horse to water, but you can't make him drink."

None of these observations are lost on the public. It's not wisdom nor knowledge that is lacking. People may not, in fact, be all that fearful or greedy. They may be waiting for a sweeping mood change.

People who buy today will be congratulating themselves in a few years. I have a fond memory of a friend that I was introduced to in Sausalito, CA. This man owned a duplex on a gorgeous hill overlooking San Francisco Bay. He rode the ferry to work every day into downtown San Francisco. What a perfect life, I said to myself. I can't imagine anything more exciting or more beautiful.

Tide and time alter perspective. Can you imagine the investment today to purchase that life? When my friend had bought his home, his friends had remarked how crazy it was! Today they would have to say crazy like a fox!

Confidence in the economy and institutions can wait. We should be telling people if they find their dream they should do everything in their power to grab it. I met that friend 20 years ago. That original Sausalito investment is more than 30 years old and the average buyer could only dream of touching it 20 years ago. Great opportunities are fleeting. Seize the day, buyer.
1 vote
Terri Hess, Agent, Columbus, OH
Sun Oct 2, 2011
My buyers enter their real estate transaction excited to take advantage of this rare combination of low inventory prices and record-low interest rates!

There has never been a better time to buy!
1 vote
Mack McCoy, Agent, Seattle, WA
Sun Oct 2, 2011
SuZ, when I bought my first home in 1988 there were articles about how "this is the top of the market, and anybody who buys now is foolish." There were charts, and graphs, and sound logical reasoning - and, I paid $118,000 for a house I sold for $700,000 in the 21st century.

Not only is there no risk in making an inaccurate prediction, but there's an immediate benefit to going against the grain - you've got a better chance of making headlines.
1 vote
Suz A, Agent, Longmont, CO
Sun Oct 2, 2011
Thought I would share this. In this survey by Trulia, it was found that most people consider home buying a better investment than gold.

http://www.inman.com/news/2011/09/22/buying-a-home-a-safer-b…

This seems remarkable or maybe incredible because gold until recently had been on a run.

Just an aside: I sometimes take media to task on things they report. On predictions that the world was on the verge of financial collapse - probably never forecast on a front page.

However, I clearly recall that the business editors carried story after story and cited statistic after statistic that the housing boom couldn't last. We don't remember. That's typical and I don't really mean this in a spiteful way. Personally, I was selling a lot of flooring and carpet at the time. My husband kept telling me it never lasts. But I did take notice when I was selling homes that the pool of potential sound buyers seemed to be shrinking.

In the San Francisco Bay area, it was noted time and again that home prices were growing beyond reach. At one time, I recall that less than 20 percent of the working adult population could afford a home in the Bay Area. There clearly were signs that one day the gravy train was going to stop. Here in Colorado, Richmond American Homes had pulled in its horns. The market here never turned red hot. It's not slumped the way other markets have.

But the breadth and depth of the housing recession could not have been predicted. People like Paulson saw it coming and made billions. By the way, until recently he has been buying up home builder stocks and he bought properties in Arizona, Colorado and Nevada. The fact that a recovery has not arrived shows he is human, too, even when armed with the best possible information.

If anyone has any predictions now for where the economy is headed, I'm listening. And, i think in spite of all the shadow inventory out there, a recovery is coming. Companies will hire again. People will spend again. It's worked that way for a long, long time.

SuZ
PML of Longmont, CO
1 vote
Sun Oct 2, 2011
Homes have become more affordable from the decline. I think the answer is based on the buyers financial situation. If you have a steady income and the PITI would be less then 20% of your income, then yes! Go ahead and buy! This leaves you with plenty of money in your pocket to still go on vacation or even upgrade your new home at your own financial pace.
1 vote
David Cooper, Agent, Los Angeles, CA
Sun Oct 2, 2011
Main Stream Media and TV always get it wrong. Not one reliable source predected the 2008 bank meltdown, but now they predict an end of the world for real estate. More people have become millionaires and bullionaires thru real estate than any other investment.
What other investment options do you have??

David Cooper Foreclosure Specialist at Since 1917 Realty, Las Vrgas 35 Years Investing Experience. Receive a FREE List of Low Priced, Bargain Homes in Good Areas with Great Cash Flow 10.0%+ CAP RATE. Go To http://www.lasvegaswinner.org or Call +1-702-499-7037
1 vote
Judi Monday,…, Agent, Green Valley, AZ
Sun Oct 2, 2011
Unfortunately they don't equip us with a crystal ball when we get our Real Estate license and while it seems like a perfect time to buy...it may not be the MOST perfect time. Bank of America is gearing up to release a slew of foreclosures that may or may not have an impact on your market. All we can do as professionals is to keep our finger on the pulse of our own markets and guide our buyers accordingly.
1 vote
Mack McCoy, Agent, Seattle, WA
Fri Sep 23, 2011
- What I am saying is I have run into more than my fair share of flakey realtors.

Welcome to our world.

I don't know what a "fair share" is, but I think that all of us Realtors(r) have had an abundance of "flaky" buyers and sellers. "Clients" who would be testy when we had to take a child to the ER, or tend to some other family matter, or for whatever reason weren't available and accommodating 24/7.

While it's just part of the lifestyle, the reality is that real estate agents and their clients are just people, people for whom buying and selling and brokering real estate is just a part of their lives. And while, in a perfect world, people would show up for their roles prepared and earnest and ready to deliver a great performance, ("All the world's a stage, and the men and women merely players"), the reality is that we - and you - are just people.

To the subject of the thread. None of us know what the future holds. You can bet on a declining market and stay on the sidelines, or bet on a turnaround and buy into the market.

Or, you can simply not give a rip, and let your personal situation dictate whether you are going to pay off someone else's mortgage - perhaps the nice old landlord or landlady, or the representative of the investment group that owns your apartment complex - or start paying off your own, living in a place that you can truly call "your own," living your own life out loud.
1 vote
David Cooper, Agent, Los Angeles, CA
Fri Sep 23, 2011
Stock Market NO! Gold NO! Bonds at 2% NO. Good old real estate YES!


David Cooper Foreclosure Specialist at Sinve 1917 Realty, Las Vrgas 35 Years Investing Experience. Receive a FREE List of Low Priced, Bargain Homes in Good Areas with Great Cash Flow 10.0%+ CAP RATE. Go To http://www.lasvegaswinner.org or Call +1-702-499-7037
1 vote
Alana Damesw…, Agent, Las Vegas, NV
Wed Sep 21, 2011
Jess...4 agents seems like alot to go through in my opinion without at least one of them being able to find what you wanted and have the skills to negotiate a close. Are your expectations realistic? I have had buyers in the last few months wanting to send in low ball offers that were not going to get accepted. I try to educate my clients and the general public that this is a sellers market we are in today! The average a house is staying on the market is 3 months. With most of that inventory being short sales, thats incredible! The homes that are prices right are getting offers in within days of being listed. Buyers should be prepared to come in with an offer of at least the asking price if not more if they truly expect to have a shot at getting the house.
Another thing I would like to make clarification on, since you are quoting me, is that I said that if one was to buy a home as an investment, if they hire a property management team, they are the ones who do all the work for you. As long as the rent you are charging the tenant(s) is enough to #1 cover the mortgage,HOA's,annual taxes,and any SID's and LID's, and#2 cover the 8-10% the property management team charges for their service to you, anything over that YES you would just sit back and collect that check.
I have no idea why that bit of knowledge I'm sharing would offend anyone.
If you are having a hard time trusting agents, maybe you should consider talking to a broker. Mine happens to have a knack for explaining in different ways and in greater detail to you exactly what is going on in TODAYS market that you might not be seeing. A little piece of advice on choosing a Realtor....before signing any contracts with one, make a call or two and see if they return those calls. That might weed out some of the flaky ones that give the rest of us a bad name.
1 vote
Jordan Paint…, Agent, Grand Rapids, MI
Tue Sep 20, 2011
There two main factors that contribute to making the current market appealing to buyers: low selling price of homes and the historically low interest rates. Home values may continue to drop but most experts agree that we are close to the bottom, and the FED has promised keep interest rates low for the next two years. If you have a solid income and a healthy emergency fund purchasing a home in this market is a wise decision.
1 vote
Mike Domeck, Agent, Charleston, TN
Sat Sep 17, 2011
The answer is yes and no as it depends on the area of the country you are in. I am in SE Tennessee and we have been seeing double digit increases in sales for the last several months. In August our company has a 17+% increase over same period last year.

We are also starting to see a slight increase in prices for the better properties. Foreclosures are holding steady at about the same number every month and that is all that seems to be holding prices down.

With the super low interest rates we have and the great selections of properties now really is a good time to buy. If you continue to rent you are just continuing to throw money down the drain with zero returns.

Mike Domeck
Affiliate Broker
Crye-Leike, Relators
Cleveland, Tn.

The views expressed are my own views but are shared by most of my co-workers.
Web Reference:  http://www.michaeldomeck.com
1 vote
David Cooper, Agent, Los Angeles, CA
Fri Sep 16, 2011
For all the people NOT working the Las Vegas real estate market, the number of sales for August approached all time highs. Experienced investors are buying Las Vegas homes while the masses are watching for the "MAGIC MOMENT" These sales numbers should be a wake up call for action, but it won't.

David Cooper Foreclosure Specialist at Sinve 1917 Realty, Las Vrgas 35 Years Investing Experience. Receive a FREE List of Low Priced, Bargain Homes in Good Areas with Great Cash Flow 10.0%+ CAP RATE. Go To http://www.lasvegaswinner.org or Call +1-702-499-7037
1 vote
NonRealtor, , 23456
Fri Sep 16, 2011
Hi Alana,
Wait another year to buy, prices are declining. Good Luck
1 vote
Bridget Stef…, Agent, Fullerton, CA
Fri Sep 16, 2011
For everyone it is different. If you have the means and the propery feels right, then it is a great time to buy. In my opinion, we are not at the bottom as of yet, but I feel we are pretty close. When we get to the bottom, you might want to consider that it might be a little harder to purchase properties because you will have all your cash buyers picking them up left and right. So I would not hesitate on buying at this time. I hope this helps and good luck.
1 vote
Bill Eckler, Agent, Venice, FL
Fri Sep 16, 2011
Whether or not the "market has bottomed out" should make little difference to today's truly motivated buyer. There are a multitude of opportunities in every location and every price range. The real fact of the matter is that agents need to get the word out that this is the time to buy property regardless if the market is going to continue to drop.

Buyers should be actively engagued in the real estate market....if for the only reason of being able to identify a bargin when it comes along. One of the reasons buyers are having a difficult time "pulling the trigger" is because they don't know a good deal from "third base."

By being in the game and becoming informed there's a chance that customers will be able to see the light.

Respectfully,

Bill
1 vote
David Cooper, Agent, Los Angeles, CA
Thu Sep 15, 2011
Alana. Educate your buyers as to what you see as the positives about buying today. These 4% interest rate for 30 year fixed mortgages will not last. I believe 5 years from now people will be saying "If I had only bought a house 2011"

David Cooper Foreclosure Specialist with 35 Years Investing Experience. Receive a FREE List of Low Priced, Bargain Homes in Good Areas with Great Cash Flow 10.0%+ CAP RATE. Go To http://www.lasvegaswinner.org or Call +1-702-499-7037
1 vote
Suz A, Agent, Longmont, CO
Wed Sep 14, 2011
If not now, soon. A home is an investment that should be purchased for the long term - for at least five years or more. This time in history will be reflected on for the lessons it offers and for the fact that buyers today bought during an ideal time for home purchases.

Rates are unlikely to go lower, and many sellers meanwhile have drawn the line in the sand. They won't sell until the market is stronger. If you can find an available home in this market of shrinking inventories, then you should well consider getting while the getting is good.

SuZ
PML
of Longmont, CO
1 vote
Tina Lam, Agent, San Jose, CA
Wed Sep 14, 2011
The real estate market is in the process of bottoming out, flushing out the remaining dregs over the next 2-3 years. While many of us in the business may believe this is a brilliant time to buy and may be buying ourselves, we should limit ourselves to our fiduciary duty to provide useful market information to our buyers and let them decide what to do.

Too many agents egged on buyers with long promises of limitless gains during the boom days and brought quite a bit of ill-repute to the profession, making us sound no better to customers than some shady used car salesmen. Whether they buy or not, some of them will end up ahead in the long-run. Until we can make a guarantee, as in via an insurance/option hedge, let's not make that same mistake.
Web Reference:  http://www.archershomes.com
1 vote
Mack McCoy, Agent, Seattle, WA
Wed Sep 14, 2011
On second thought . . .

Joan is onto something when she points out that advising people to buy three to five years ago hasn't exactly worked out financially.

However. People come to us for our advice, for our opinions - what are our obligations?

Do we tell the truth, tell people what we really think, feel, and believe? Or do we essentially lie, and tell them something other than what we really think, feel, and believe?

Alana says that she truly believes that this is the opportunity of a lifetime. Some people think otherwise. When people ask your opinion - should you give them your opinion, or somebody else's opinion?
1 vote
Mack McCoy, Agent, Seattle, WA
Wed Sep 14, 2011
You know, I've never had a potential buyer "scared to buy right now."

People who are "scared to buy right now" or are out of the market for whatever reason do not have real estate agents! Let's remember that people only hook up with real estate brokers when they're looking to buy or sell real estate!

I think it's fine for people to decide to miss an opportunity of a lifetime. I am a buyer in this market, but I may be wrong. Most of my clients who bought two to five years ago wish they had paid today's prices, certainly, but also realize that they've been homeowners and been able to go on living their lives the way they wanted to, rather than waiting and waiting and waiting.

It's easy for us to want to tell people what to do and how to live, but I'm not about to tell someone with a three-year-old who wants to buy a piece of soft lawn for that kid to play on that they "should" rent for five years because prices could be lower then.

I'm not a crystal-ball kind of guy. I know from experience that you can't see around the corner, which is where the turns in the market place are hiding.

I do know what today's prices and interest rates are, and if they're attractive to people, they will come to talk to one of us.
1 vote
Joan Braunsc…, , Morris County, NJ
Wed Sep 14, 2011
Isn't this the same advice so many agents (including perhaps some of you) were giving a few years ago and how do you think people who listened to such advice feel now if they are forced to sell in this market?

Don Tepper's post was exemplary and should be required reading for all agents who somehow feel it is within their professional boundaries to give advice which in the past has proven to be disastrous for so many.

The only time it is a right time to buy is when a buyer makes a personal decision, hopefully based on sound reasoning and thorough research, that it is the right time for them.
1 vote
Matthew D'Er…, Agent, Las Vegas, NV
Fri Sep 9, 2011
Prices have not bottomed out yet but who knows how far down it will go. The housing market is tied dirrectly to local, regional, national, and international economies/employment figures. Las Vegas is tied to all of these economic realities. If you have a lot of cash it would be wise to start buying fouth quarter of this year and continue buying and doing "cost averaging" approach like you would with stocks. If you only can buy one home I would wait till we see what happens with the ecomony/jobs as previously mentioned. If you come across a hell of a deal then move on it and rent it out. I can help you with all of that. God Bless and good luck,

Matthew D’Ercole
One Source Realty and Management
Cell - 702.501.0973
"A Nation of Sheep Breeds a Government of Wolves".
Read the Constitution, Teach it to Your Children.
Website - http://matthewsellslasvegas.las.mlxchange.com
1 vote
Heather Peck, Home Owner, Las Vegas, NV
Fri Sep 9, 2011
I tell them there is no way to time the market. But if you like the property, do you really want to look back and say 'I should have bought that house then."
1 vote
Joel Perez, Agent, Wheeling, IL
Tue Oct 4, 2011
The price is right and the interesr rates are lower..
0 votes
Frank Diaz, Agent, Honolulu, HI
Tue Oct 4, 2011
I like to watch consumer confidence and (un)employment:
http://www.bloomberg.com/quote/CONCCONF:IND
http://www.bls.gov/news.release/empsit.nr0.htm

I could send an endless number of links to payroll, unemployment, the price of manganese in Brazil or hog bellies. Two things are paramount:
1. If you can afford it, buy a home. You have to live somewhere. If we're not at the bottom we're darn close. I think the prices will decline a few more percent, but who knows! There are pockets in neighborhoods that are going up. Supply and demand. A lot of people with cash are swooping in and buying up properties.
2. Interest rates have a bigger effect than price. Check the difference in a mortgage calculator. Try 4% vs. a 4.5% loan and try a $150,000 loan vs a $160,000 loan.

Aloha,
Frank
0 votes
Joan Lehman, Agent, Grass Valley, CA
Tue Oct 4, 2011
I have been selling real estate for the past 26 plus years and now is the best time I have seen to buy. Prices are the lowest in about 10 years and interest rates are lower than when I purchased my first home in 1972! If you can purchase a home for about the same or just slightly higher than your rent would be, do it now!
0 votes
Tiffany Razo, Agent, Broadmoor Village, CA
Tue Oct 4, 2011
Yes, I believe it's a great time to buy!
0 votes
Amy, Home Buyer, Danville, CA
Tue Oct 4, 2011
You should read this article to help you: http://patrick.net/housing/crash2.html
0 votes
Matthew Urci…, , Arlington, MA
Tue Oct 4, 2011
Not every home in a market is a good deal. With experience as a teacher I can help them do the due diligence. Using the best technology on the market I have been able to steer clear of the pitfalls. Investors in this market can gross up to 10% on their money, and net 6%.
0 votes
Michele and…, Agent, JUpiter, FL
Tue Oct 4, 2011
The market in Palm Beach County has had a significant decline over the past few years. Prices are down tremendously and it is a fantastic time to buy. Market activity has been much greater recently and supply is starting to lessen. As we approach our season, which starts in November, I believe this trend continue as second home buyers take advantage if this great opportunity to buy a home at a low sales price.
0 votes
Eric Payne, Agent, Princeton, NJ
Tue Oct 4, 2011
Not only are prices lower than they have ever been (especially if you account for inflation) interest rates are the lowest they have been in 50 years. The interest rate can affect someone’s ability to buy as much if not more than the price of the home. Take a look at this example of a $200,000 mortgage at 4.2% vs. 5.5%. A 30 year mortgage @ 4.2% would have monthly payments of $978.03 vs. @ 5.5% = 1,125.58 If a buyer qualifies for $1,000 a month they could afford the $200k home @ 4.2% but would only qualify for a $170k home @ 5.5% This is an extremely important point to bring up to buyers looking for a home in today’s market. We are in a situation where we have the best of both worlds, great prices and low interest rates which is not too common.
0 votes
Mack McCoy, Agent, Seattle, WA
Sun Oct 2, 2011
That's true, David - there's always a contrary voice in the crowd, sometimes that voice is correct, but the solitary voice does not get airplay. That's the way of the world.

Judi, you bring up a point about the "most perfect time," and the fact is, we're all at different stages of our lives when a "most" perfect time comes about.

I do know that there are people who bought in the 70s who wish they'd bought earlier, people who bought in the 80s who wish they'd bought in the 70s, even with the high interest rates, people who bought in the 90s who wish they'd bought in the 80s, and people who bought in the past decade who wished they had bought in the 90s.

All you can do, as a reasonable and sensible person, is to look at whether NOW is the right time for YOU to buy. The market conditions are good, but your personal situation may not be.

I think that if the stars line up for you, you will be the envy of the next decade.
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Mack McCoy, Agent, Seattle, WA
Sun Oct 2, 2011
- Be careful. Most real estate agents will tell you wantever makes it more likely to get a commission.

Actually, "most" real estate agents want satisfied customers, not disgruntled ones. Give us some credit for having personal ethics, please.

Most of us sell real estate because we believe in the product. Many of us either grew up in homes our parents purchased and saw how well it did for them, being able to send us to college and all, or we grew up in rentals watching the homeowner kids get sent to college while we were applying for student aid.

Most of us who list the homes of older citizens see that they've got a big chunk of money that they can use to move into assisted living or a retirement community. Even after getting hit by the crash, a lot of people who bought their first home in the '90s see that they're just moving their equity from house to house as their lifestyles change - as the kids grow up and out.

So, it's one thing to sit back and consider whether what a real estate agent tells you is appropriate for your situation. It's another thing to accuse us of lying just to make a buck. Especially in print. I truly prefer it when people do that in person.

All the best,
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Suz A, Agent, Longmont, CO
Sun Oct 2, 2011
A friend is fond of quoting a saying: "You can drive a horse to water, but you can't make him drink."

None of these observations are lost on the public. It's not wisdom nor knowledge that is lacking. People may not, in fact, be all that fearful or greedy. They may be waiting for a sweeping mood change.

People who buy today will be congratulating themselves in a few years. I have a fond memory of a friend that I was introduced to in Sausalito, CA. This man owned a duplex on a gorgeous hill overlooking San Francisco Bay. He rode the ferry to work every day into downtown San Francisco. What a perfect life, I said to myself. I can't imagine anything more exciting or more beautiful.

Tide and time alter perspective. Can you imagine the investment today to purchase that life? When my friend had bought his home, his friends had remarked how crazy it was! Today they would have to say crazy like a fox!

Confidence in the economy and institutions can wait. We should be telling people if they find their dream they should do everything in their power to grab it. I met that friend 20 years ago. That original Sausalito investment is more than 30 years old and the average buyer could only dream of touching it 20 years ago. Great opportunities are fleeting. Seize the day, buyer.

SuZ
PML of Longmont, CO
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Stephen Fost…, Agent, San Antonio, TX
Sun Oct 2, 2011
Be careful. Most real estate agents will tell you wantever makes it more likely to get a commission.
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Damon Bottic…, Agent, Las Vegas, NV
Fri Sep 30, 2011
If you want to own a home and you can get a 30 year fixed rate loan with payments between 25-35% of your income, then it might be the right time to buy.

Or if you're interested in an 8-10% yearly return with the possibility of additional appreciation while gaining a tax advantage by depreciation...it might be the right time to buy.

If your employment is unstable, or you need to rely on a spouse's income to qualify, or you need to sell in the next couple years, then it might not be the right time to buy.
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Damon Bottic…, Agent, Las Vegas, NV
Fri Sep 30, 2011
I think I would have to say the answer to your question is...maybe.
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David Cooper, Agent, Los Angeles, CA
Sat Sep 24, 2011
Mike. I can make my future a little more real by owning free and clear a house by the time I retire. A 4% mortgage over 30 years fixed, for a 3 bedroom house price of $150,000 in Las Vegas stops the insanity of worrying about the stock market, gold, taxes. The mortgage payment is equal to rent, and you have to live somewhere.

David Cooper Foreclosure Specialist at Sinve 1917 Realty, Las Vrgas 35 Years Investing Experience. Receive a FREE List of Low Priced, Bargain Homes in Good Areas with Great Cash Flow 10.0%+ CAP RATE. Go To http://www.lasvegaswinner.org or Call +1-702-499-7037
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Jess, Home Buyer, Las Vegas, NV
Thu Sep 22, 2011
Alana~ My expectations were and are VERY realistic ; we would never send in a " low ball" offer. The problem was not finding a house; the problem was not my credit; the problem wasn't money; the problem wasn't not being pre-approved. What I am saying is I have run into more than my fair share of flakey realtors. Now, I am not saying all realtors are like that because I have FINALLY found one that actually cares and shows up to viewings. He listens to me, what we want and what our price range is. The first realtor we had kept looking in a price range that I asked him not to look in at least ten times. I realize things can be negotatiated, but he was going over-board. He even got quite snotty with me when my daughter was sick and he decided to call me at the very last minute to look at a house ( we had no plans to go out and look that day) and I told him I could not make it because she was ill. His response? " We are losing out on another property because of your daughter." Unprofessional to say the least. Any way, I am not going to reply anymore. I just thought I would put a current buyer's perspective in on this question. We actually finally got to place an offer on a house a few days ago. So, we are hoping for the best, but will continue the search as needed. Thanks.
0 votes
Akhila Aneja, Agent, Metuchen, NJ
Wed Sep 21, 2011
you are right Alana. this is the best time to buy. It is the uncertainity and fear that is scaring people.
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David Cooper, Agent, Los Angeles, CA
Wed Sep 21, 2011
Why did you pick those agents? That is a extremely low failure rate and I have been an investor for 35 years and an agent for 10. I would suggest you have the agent's send you a list of recommenedproperties that you qualify for, and in the quiet of your own home, determine who can do the best research and can close sales. Seasoned agents set up the ground rules up front, so both agent and buyer establish trust in each other. Check me out


David Cooper Foreclosure Specialist at Sinve 1917 Realty, Las Vrgas 35 Years Investing Experience. Receive a FREE List of Low Priced, Bargain Homes in Good Areas with Great Cash Flow 10.0%+ CAP RATE. Go To http://www.lasvegaswinner.org or Call +1-702-499-7037
0 votes
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