My New Blog

THERE IS NO BETTER TIME TO BUY A HOME THAN RIGHT NOW. YES, WE HEAR ABOUT THE HOUSING MARKET EVERYDAY AND SURE IT'S HARD IF YOU'RE A SELLER.... OR IS IT? AFTER ALL, IF YOU'RE A SELLER YOUR ALSO LIKELY TO THAN BECOME A BUYER TOO! THE OPPORTUNITIES ARE CERTAINLY THERE FOR BUYERS. HERE ARE A FEW FACTS.

FIRST:

THE CREDIT CRISIS WILL LIKELY CONTINUE AND TIGHTEN AS TIME GOES ON. THUS, LIKELY MAKING IT HARDER FOR SOME PURCHASERS TO GET FINANCED.

SECOND:

LESS THAN 5% OF ALL MORTGAGES ARE EITHER AT OR IN DEFAULT, WHICH MEANS 95% ARE IN GOOD STANDINGS AND THAT'S AGAINST HISTORICALLY HIGH NATION WIDE HOME OWNERSHIP.

THIRD:

HOME MORTGAGE RATES ARE NOT LIKELY TO GET ANY BETTER.

SO HERE ARE SOME POINTS TO PONDER. THE HOME BUYER OF THE PAST WAS FACED WITH LOW RATES AGAINST, EVER INCREASING HOME VALUES THAT WERE SIMPLY INFLATED DO TO LOW RATES AND CREATIVE HOME FINANCING THAT LENDERS KEPT BREWING UP. AS MULTIPLE BUYERS MADE MULTIPLE OFFERS FOR THE SAME HOME, THE BIDDING UP ALSO PUSHED HOMES BEYOND REASON. THE "CULPRIT LOW RATES" BUYERS BOUGHT PAYMENTS NOT CALUES. SELLERS WITH MULTIPLE BUYERS DID WHAT ANYONE WOULD DO ACCEPTED THE BEST AND HIGHEST LAST OFFER, THAT'S PERFECTLY NORMAL. THE MARKET WAS THE MARKET. THE MARKET HAS NOW COME FULL CIRCLE AND THE BUYER NOW HAS THE NEGOTIATING ADVANTAGE. THAT IS IF THEY CAN LOGICALLY SORT THROUGH THE MORTGAGE OPTIONS. THE GOOD VALUES FROM THE BAD VALUES AND THE PRECEPTION OF WETHER IT IS REALLY AS GOOD OF A DEAL AS IT APPEARS. THAT'S WHERE A GOOD REALTOR ACTING AS A GREAT CONSULTANT CERTAINLY PAYS OFF. REMEMBER, JUST BECAUSE YOU MAY BE BUYING A HOME FOR LESS THAN THE CURRENT OWNER HAS PAID FOR IT DOES NOT MEAN IT'S A GOOD DEAL FOR YOU. THEY MAY HAVE OVER PAID AND OVER FINANCED. REMEMBER, YOU AT THE TIME OF SALE SET VALUE, DON'T THINK OR BE FOOLED INTO BELIEVING VALUES WILL COME BACK AND YOU'LL BE WISER. VALUE LIKE WEALTH TAKES TIME, NOT TIMING.

REMEMBER WHAT I SAID EARLIER, IF YOU ARE A SELLER NOW YOU’RE LIKELY TO BE THE BUYER NEXT AND YOU'LL GET YOUR TURN AT RENEGOTIATING YOUR NEW PURCHASE. THE SMART ACTION TO YAKE IN TODAYS HOUSING MARKET HAS NEVER CHANGED... THAT IS ALWAYS BUY UP IN A DOWN MARKET, THE LOGIC IS SIMPLY YOU BUY UP BECAUSE THE HIGHER PRICE HOME IN THE SAME MARKET FALLS BY A LARGER % IN DOLLARS THAT THE LESSER PRICE HOME YOUR WANTING TO SELL, EXAMPLE THE MARKET SOFTENS BY 5% ON A $200,000.00 DOLLAR= $10,000.00 ON THE $100,000 HOME AT THE SAME 5%= $5000.00 THUS YOU WIN BY $5000.00 NOT TO MENTION THE VERY ATTRACTIVE INTREST RATES "AS LOW AS 6% ON A 30 YEAR FIXED LOAN" YEAH, THATS RIGHT, SO YOU EVEN WIN IN THE RATE GAME TOO. THE ONE THING FOR SURE IS YOU CAN'T TIME THE MARKET SO YOU NEED TO ACT WHEN VALUES ARE THERE, SUPPLY IS AMPLE, AND RATES ARE FAVORABLE.

NOW, LET US LOOK AT WHY BUYING NOW MAKES YOU MONEY AND MAKES SENSE. FINANCE COST WILL RISE AS WELL AS HOME PRICES, AS THE ECONOMY RECOVERS. SO TRYING TO TIME REAL ESTATE MIGHT NOT PAY OFF. TODAY'S $100,000.00 DOLLAR HOME AND THIS SPRINGS $100,000.00 DOLLAR HOME SAME PRICE RIGHT? "WRONG", YOU SEE CHANGES ARE THIS SPRING, RATES AS WELL AS VALUES COULD BEGIN TO RECOVER, ALONG WITH THE ECONOMY FOR ILLISTRATION PURPOSES WE'LL FOCUS THIS ON THE COSTS OF MONEY, WITH NO INCREASE IN THE HOME PROCES. TODAYS INTREST RATE AT 6% OR SUPPOSE THIS SPRING RATES WENT UP BY 6.5% ON THE SURFACE NOT A BAD RATE STILL. BUT LOOK AT IT FROM THIS PERSPECTIVE, THE DIFFERENCE IN YOUR PAYMENT OVER THE LIFE OF THE LOAN WILL COST YOU $11,500.00 MORE BY WAITING. NOW THIS COST ONLY COMPOUNDS ITSELF HIGHER WITH THE COSTS IF YOU'RE BUYING OVER THIS $100,000.00 DOLLAR ILLUSTRATION.

REMEMBER THE HOUSING MARKET IS A CONTINUOUS LOOP BUYING UP IN A DOWN MARKET, THE BUYER WINS. AS A SELLER YOU’RE LETTING LESS GO TO BUY UP TO GAIN ON A GREATER PERCENTAGE OF YOUR PURCHASER. "WIN/WIN"

NOW FOR THAT PESSIMIST THAT JUST NEED YOUR FIX OF BAD NEWS, HERE'S SOMETHING FOR YOU. IF YOUR BUYING DOWN, IN OTHER WORDS WANT TO SELL A HIGH PRICE HOME TO BUY A LESSER PRICE HOME, OR MOVING OUR OF THE AREA, WHERE YOU CAN'T GET YOUR CHANCE AT CAPITLEISM, THEN I SAY TO YOU WHAT A WISE MAN SAID TO ME MANY TIMES "EAIASTAEOGO" ..... EVERY ADVERSITY IS A SEED TO AN EQUAL OR GREATER OPPORTUNITY. GO FIND IT AND REMEMBER THE AVERAGE BROKERAGE FIRM WOULD NEVER EXPLAIN THIS TO YOU, THAT'S WHY YOU OWE IT TO YOURSELF TO CALL REAL ESTATE MASTERS OF AMERICA, INC. (810) 987-8600 NOW! THERE'S A GOOD REASON THIS IS OUR 30TH YEAR IN BUSINESS, AND SELL THE MOST HOMES IN THE COUNTRY YEAR AFTER YEAR.