WILL 2008 BE THE YEAR YOU WISH YOU HAD BOUGHT REAL ESTATE?

With lower interest rates and plenty of homes to choose from, now may be the right time for you to purchase real estate. Today's lower interest rates may not be around when prices flatten out, so trying to time the market rarely works to your advantage. Another problem with trying to time the market is that it requires a rising market to know just where the bottom was...hindsight is always 20-20, isn't it?

In many cases, purchasing a home may be cheaper than renting.  Your rent could have gone towards your own mortgage, instead of paying your landlord's mortgage for him. Your landlord loves you, by the way, because you're making him rich. You are literally buying his property instead of your own.  That is not an exaggeration...

Then there is the distressed (foreclosure) property market. While many of these properties have condition issues and other challenges, in many cases they are priced below market value and offer opportunity for those willing to put in a little sweat equity to make a profit. If you are considering purchasing a distressed property, let me help you with the tricky foreclosure market.  It can be tricky to navigate.

All investments carry some level of risk, and purchasing real estate is certainly no exception. This is not the time to make decisions that have not been carefully analyzed. What is a good purchase for an investor may not be a good purchase for a typical homebuyer. Let me guide you, homeowner OR investor, in the right direction and provide the information you need to make an educated decision based on your individual and family circumstances.

Many people wish to wait "until next year, when prices may be lower".  This sounds so wise and yet, of course, carries its own risk. Prices may be lower, but no one knows, they may be higher. How many times have you waited for that special sweater at your favorite store to be marked down, only to discover that it was snapped up by someone else before you had the chance to purchase it? It may be a simple analogy, but the principle is the same: if you snooze you lose.  You may try to wait it out, but hopefully you won't want to kick yourself a year from now.

The truth is, none of the 'so-called' experts can accurately predict the real estate market any better than other experts can accurately predict the stock market or what gas prices will be a year from now. If you purchased real estate in 2006 or 2007, you most likely got a great home at a terrific price with a low interest rate. Provided you stay in your home for several years, you will benefit when property values eventually rise again.

One buyer purchased a home when the market was so hot that homes were selling in just days and for full list price. That home is now worth about $100,000 more than it was when purchased. A few years earlier, it may be worth $25,000 more than that. Just two years ago, it may be worth about what it sold for. That's the nature of real estate. Values go up, values go down, and when you purchase and sell makes all the difference.  Also, who you have representing you makes a big difference! 

For the typical homeowner, purchasing real estate should be a long term investment as well as a good tax deduction, and also a place to live and make memories that will last a lifetime. Is it a good time to sell your home in today's market and purchase a new home? Absolutely!!  In fact, this market offers tremendous opportunities. Selling has to do with many factors, so don't forget that family timing is all important as well as market timing.  If the market values are higher in three years, some will make more money on the sale of their home. Of course, you will also be paying more money for that new home.  So nothing may be gained by waiting for family reasons, yet sometimes those reasons are valid and justified.  Some may actually lose money because of the higher purchase price on a new home and potentially higher interest rates. But that's life, folks. Sometimes you need to make decisions based on what is right for you and your family at this moment of realty instead of making decisions based solely on the financials and what-if's.

So will 2008 be the year you wish you'd bought real estate?  Only you know you family situation  Contact me, Phyllis, at 252 339 5151 for advice on Northeast NC and Albemarle Sound real estate, and let me help you navigate these important waters. 

Thanks to Kelly Sibilsky of Lake Zurich, IL, for some of these thoughts.  You can read her full article at

http://activerain.com/blogs/getmovingwithkelly?page=3