Well, I have been gone for awhile so I thought I’d get your attention…lol Do I think 2009 will be the year of the crash?....Well, It might not “crash”, but it will surely continue to “tumble”. The real estate market, whether local or national is based on the economy and the purchasing power of potential buyers and neither is good right now. I am confident (unfortunately) that prices will be lower at the end of this year than now, but that doesn’t mean you shouldn’t buy. Is it the right time to sell? Well, depending on your situation here our my 2009 advise “quick hitters” (an old phase from my basketball coaching days..lol).
Thinking of buying your first home – Make sure you are buying for the right reason. Real estate is a great long term investment. If you know which direction you are going (jobwise, relationship wise etc) and you are committed to live in the house for ATLEAST 5 years, then go ahead and take advantage of low rates and good deals. Be sure you hire the BEST real estate professional to help navigate you through the treacherous real estate waters. If you are not ready to commit to a minimum to 5+ years in the house then take advantage of lower rents and RENT.
Is it a good time to invest? - If the property CASH FLOWS and you can buy a property BELOW market value in terms of today’s value AND you are not investing your nest egg then…..YES!!!! This is a great time to acquire good properties. Do NOT buy based on future appreciation. If you are going to “buy and hold” the property, it MUST cash flow in order to be a safe investment. Make sure you surround yourself with a team of professionals to assist you. Use and investment specialist broker, not your “Realtor – In Law”. Of course, make sure you are committed to a MINIMUM of 5 years.
Should I sell now? - It depends! Hows that for an answer..lol Seriously, I would say this… If you are sure you will be selling your home in the next 3 years, than I believe the safe move is to sell now. I think the market has the potential to go lower than it can higher (over the next 2 years). If you know you are going to sell, then do it now. If you sell now, you most likely can find a property to rent for less money than owning, which might offset any appreciation IF it happens. Now, if you think you will stay in the house for several years, by all means KEEP IT!! House values will eventually return. The home is more than financial…it is your home.
I am Upside Down? – The bad news, the bad economy and the political pressure for banks to work out deals with homeowners gives people who are upside down many options. SHORT SALES (selling the house for less than you owe and having the bank forgive the balance) are happening all the time and the banks are very willing to do so. It is Key you hire someone who has extensive experience with short sales, as it is a delicate procedure. If you have NO equity in your home, this is a great time to dump it via short sale before you get upside worse. If you really upside down, why not do a short sale….get rid of the negative equity….rent for 2 years……then bargain hunt in 2 years.
John McCain (ok ..he lost…lol) called himself the “straight talk express”. Well, I will be real estate’s straight talker. Most of my collegues in the real estate industry project the image that everything will be ok this year. It might, but I want my friends, family and clients to make smart, well informed decisions with regards to their real estate during this volatile time. 2009 might define the next 10 years for people...good or bad
If you would like an objective, evaluation of your situation, email me @ firstname.lastname@example.org or call me @ 345-7355.