About 1.63 million search results show up on Google for "Best time to buy a home". That is exactly the number of times real estate leaders have said, "Now is the best time EVER to buy a house" ....each year for the past 10 years. Really, it's not much of a stretch; we Realtors have never seen an economy that wasn't "the right time" to buy and sell real estate. We've taken optimism to a new level.
I don't have all of the answers, but I do have some questions: If "now is the time to buy", because rates are low and prices have dipped, how can can it also be the time to sell? Especially if "real estate prices are coming back", it can't possibly be time to sell. The time to sell must be coming, but how can it be today?
If I tell people to buy now because this economy is the perfect storm of low rates, lower prices, and high inventory, what should I tell the people who miss the boat when rates rise? I've seen people who missed a boat and they're kind of bummed.
Maybe another way to look at opportunity is to take factors we don't control out of the equation. Things like prices and interest rates have a way of going up, down, sideways, regardless of what I do. What I can control to some reasonable extent is my savings, my employment, my credit score, my debt, and my knowledge about housing options and housing costs. If I focus on saving $40,000, boosting my credit score over 700, and eliminating my debt, I will have 20% to put down on a $200,000 purchase, I'll qualify for the best interest rate available, and I'll still be able to save for home upgrades and improvements that keep my home's value from dropping too far south in the next economic dip. When we jump to own because we want an interest rate and what looks like a low price we over extend, waste money on worthless expenses like primary mortgage insurance, and end up with houses that own us.
Responsible people in the real estate and lending fields may turn some business away because they know it makes a difference to be part of the economic solution. America does not need more unqualified home owners. America will benefit from a more aware real estate consumer whether they are renting or owning. A wise renter saving and building their credit score and financial position will be a powerful home owner...when they are ready.
Home owners who wait to sell when prices go up will be wise to take action on modernizing their homes today. The fixtures that were in style in 1997 can be replaced today along with the flooring, and bathroom fixtures. Who knows when or if home prices will move north? But if you are waiting for the day when your home is worth more than you owe, you might as well live in a better looking environment today.
No comments:
Post a Comment