Tuesday, December 21, 2010

Maybe I Should Wait to Buy........Maybe Not!

So, you are getting ready to buy a home.  You've been watching the real estate news on TV (we always pay more attention to the things that we are interested in) and it has been telling us how bad things are.  Well, maybe for everyone else, but not for you as a buyer.  Hmmmmm.  Maybe, in spite of the advise of your agent, it would be smart to wait.  Maybe see if the bottom falls lower. Maybe the rates, although at record lows, will fall even further.  Wouldn't it be cool if we could buy at the REAL bottom of the market? Maybe, maybe, maybe.....  So, what happens if things don't get better-and get a little worse instead?  What if the rate goes up-even a little?  What really is the cost of trying to outsmart the market?  Well, if the rates go up by 1% (when they are near 4.5%, that's sure possible) it wipes out a 10% drop in the price of a house. That means the $100,000 house you wanted to buy will have to drop to $90,000 to make up for the 1% rate increase that happened while you were "waiting for the market to bottom out".  The 1% rate increase is pretty likely-do you think the 10% price drop will happen too?  Nope, not very likely........  In fact, a 1% rate increase is 10 times more likely than a 10% drop in prices...  OK, so knowing that, what are you waiting for???  There is good inventory,  great rates, best pricing in years.......  Are you going to be the one who waited too long looking for the "perfect deal"?  Now is the time, friends.  And just like all other good things, it won't last forever. 

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