There is much in the way of speculation about being in a buyer's market. Perhaps we are and only due to the large inventory, however, buyers are not out in droves making offers and closing deals as past buyer's markets have always been. Most buyers believe they cannot get financing to purchase available homes and they're just not confident enough to buy. Most buyers feel the property they want to purchase cannot be properly valued so they ask what am I really buying? Please allow me to help - most buyers believe and feel they cannot make a purchase at this time. There's alot of money out there for the lending. Are you a member of a credit union? Are you paying an existing mortgage and upon sale of that property and the purchase of a new property will you need a mortgage? How about that lender, have you asked if they're making loans to existing customers with a good track record?
Now is the time to be proactive and research the opportunities that will get you what you want. It is not the time to wait for something to happen. It's time for you to make something happen for you. Case in point, last Friday a young man stopped by my office and inquired about several properties to buy. One to renovate and live in with his family and two others for investment purposes. What does he know? How much money does he have? For him there is no better time to buy than now: low prices plus low interest rates equals opportunity. The news of a poor economy has resulted in buyers' becoming renters' out of fear. This young man sees the rental community as a strong source of future financial gain. No risk no reward.
Moving forward and as mortgages reset there are going to be many new foreclosures and potential short sales. It is yet to be seen how the federal government bailout of banks will effect the foreclosure market. It is fair to say the federal government is going to make the final decision if they have, in fact, lent public funds to those foreclosing banks. Remember the federal government forced several banks to take part in the bailout. Real estate, as an industry, has always had a significant number of foreclosures as a part of its sales. Although they may seem to be attractive deals on the surface "caveat emptor" or buyer beware has never been a truer statement with regards to involving yourself in a foreclosure. The seller desires to be free and clear from any financial burdens after the closing of the foreclosed upon property and the lender wants the agreed to amount of the loan to be repaid. Since the buyer is the only one with any money I ask myself if the federal government, in its attempt to bail out bad deals, is going to re-coup the monies or a significant part of the monies from the "bad" deal? Who will make up the amount for the federal government's time, energy and to repay the "people"? The buyers that's who and that's how. Fees, taxes, surcharges and processing charges will be tacked onto the purchase for buying a bad deal. Does this make a good deal now out of this bad deal property? Or is this some kind of polished up old new deal?
So, you want to sell or buy and you want to do it now? Do it the old-fashioned way. Twenty percent down on a thirty year note. Don't treat your house like an ATM. Whether you're selling or buying: twenty percent down, thirty year note, build equity.
Coldwell Banker Reliable located at 7428 Fifth Ave., Brooklyn, NY 11209, tel: 718.921.3100, website: www.cbreliable.com is offering a series of educational seminars for 2009 including Avoiding Foreclosure and Selling Short.
If you have any questions and/or comments about any blog posts or would like to discuss a real estate issue please contact John J. Young, Licensed Real Estate Salesperson, Coldwell Banker Reliable, 7428 Fifth Ave., Brooklyn, NY 11209, tel: 718.921.3100 or email at john@johnjyoung.com