The only bail out we need…

I talk to hundreds of people every week about our real estate market.  The only common sentiment among most people is that no one knows what’s coming next, so they are going to wait.  But if you wait to sell your home in order to move up to a better home you could lose big when the market turns around.  And remember we never know when the bottom of the market is until it’s behind us.  If you’ve lost 10% of the value on your $200,000 home that’s $20,000, but you’ll save $30,000 by moving up to that $300,000 home that has also lost 10%.  If you were to wait for the market to turn for the better and you’ve gained that 10% back you’ll make $20,000 on yours but turn around and pay $30,000 more for your new home.  Would you rather buy that home for $300,000 or $330,000? What will interest rates do to that monthly payment if they go up while your waiting for the market to “get better”?

It’s difficult to give advice to people who are contemplating investing in real estate today, but it all boils down to a few key factors:

1-Inventory of homes for sale- Are there homes for sale that fit your needs?  Undoubtedly.

2-Interest rates- Arguably the best time to finance a home is right now.   Yes, rates might improve in the next 6 months, but right now they are fantastic hovering in the 5.25% range which we haven’t seen in forty years.

3-Your ability to move- Yes it is more challenging to sell a home these days, but I have been in two competitive bidding situations recently, and twice this year I put a seller and buyer together on transactions for homes that weren’t even on the market yet.  Buyers are grabbing good properties quickly, so if you need to sell we can make it happen.  Take these steps; Get storage space and de-clutter, do the fix up you’ve been putting off, stage the home professionally, price it below the competition and use the best quality most professional marketing to advertise the home.

I read a great article this morning at Realtycheck, a CNBC real estate blog.  A reader of the column asks the same question I hear everyday; should I wait?  Her answer sums up my feelings exactly:

“…it will also be up to average Americans to take a chance on our economy again, after bearing the wrath of laughable oversight, reckless corporate leadership and broken market systems. A home should be a place to take comfort and a comfortable, albeit conservative, nest egg. The greatest holiday gift to all of us would be to remember that.”

The opportunities are are out there and I hope your 2009 will be the best year yet!