Timing is everything with real estate: a great time for buyers
Being an old NYSE stockbroker, I learned early on that timing is everything. Basically there is an old saying that you buy on bad news and sell on good news. That is true for buying and selling stocks and it is true for real estate, too.
As we all know the real estate market now is not the best for sellers, but I have never, ever seen a better time for buyers. Real estate prices have fallen from the highs of 2008 and mortgage interest rates were lower only when the caveman walked around the High Country.
If you are a seller, take a few minutes and look at the numbers. If you are considering selling your property, write down how much you paid for that property. Then right below that number subtract the downpayment you made when you purchased the property. Now write down a conservative figure on the selling price of that piece of real estate. If you now subtract the amount of your mortgage is that figure higher than the original downpayment you made when the property was purchased? Hopefully so. Now figure out how much you deducted from your taxes for mortgage interest and then figure out how much pleasure you had in owning that property. I bet a majority of you will walk away with your downpayment back, and I bet you just might have more than that, along with the memories of using that home here in the High Country.
Now for you buyers out there: Quit procrastinating and make an offer. So what if you miss the bottom of the interest rates by an eighth of a percent. Missing out on buying that property will be something that you just might regret for the rest of your life. You are buying in the best times to buy in my memory, rates are low and prices are great.
As an example: You borrow $400,000 at 4.5 percent, the monthly payment will be $2,020. Say you hold out for 4-3/8 percent but never get there. That payment would be $1,990. So you loose out on that property for $360 a year?
So buy on bad news and sell on good, and right now the good news is for buyers, and not so bad for sellers if you walk away with your original downpayment, tax deductions and lots of memories.
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