Robbinsville, New Jersey Real Estate

Today I was going through posts and was thinking about what I could do to inspire the buyers our there with FACTUAL content about buying a home.   With that being said…This post came to mind.   Enjoy!!

The following article was written by a fellow colleague of mine in Illinois.   I thought it was a great follow up to my last article on the ‘wait and see’ that buyers were doing.

Thank you Kelly - I appreicate you sharing this with my home town.

Will 2008 be the year you wish youd 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. Todays 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, isnt it?

In many cases, purchasing a home may be cheaper than renting. In my market area, it is difficult to find a decent rental unit for under $1,300/mth. Thats $15,600/year that could have gone towards your own mortgage, instead of paying your landlords mortgage for him. Your landlord loves you, by the way, because youre making him rich. You are literally buying his property instead of your own. Think about it.

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, I suggest you consult a real estate agent who specialized in the foreclosure market to assist you. 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 home buyer. This is why you should always work with a real estate agent who can guide you in the right direction and provide the information you need to make an educated decision based on your individual circumstances.

Many people wish to wait ‘until next year, when prices may be lower’ which of course, is a risk in and of itself. Prices may be lower, or 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 simply analogy, but the principle is the same: sometimes you snooze, you lose. If thats okay with you, then go ahead and wait it out. Hopefully you wont want to kick yourself a year from now.

The truth is, none of the experts can accurately predict the real estate market any better than the 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 (something I always recommend), you will benefit when property values eventually rise again.

I actually purchased my own home when the market was so hot that homes were selling in just days and for full list price. My home is now worth about $100,000 more than it was when I purchased it. Had I purchased a few years earlier, my home may be worth $25,000 more than that. Had I purchased just two years ago, my home may be worth about what I paid for it. Thats the nature of real estate. Values go up, values go down, and when you purchase and sell makes all the difference.

For the typical homeowner, purchasing real estate should be a long term investment as well as a good little tax deduction, a place to live and make memories that will last a lifetime. Would I be comfortable selling my home in todays market and purchasing a new home? You bet your booties. In fact, I wish I could do just that, because I feel this market offers tremendous opportunities. The problem is, its not the right time for me to do so because my youngest son has three more years of high school. If the market values are higher in three years, I will make more money on the sale of my home. Of course, I will also be paying more money for my new home. Therefore, I will not have gained anything by waiting and may actually lose money because of the higher purchase price on my new home and potentially higher interest rates. But thats life, folks. Sometimes you need to make decisions based on what is right for you and your family instead of making decisions based solely on the financials.

So will 2008 be the year you wish youd bought real estate?

Kelly Sibilsky provides a superior level of real estate services to home buyers and sellers in Lake Zurich and the Northwest Suburbs of Illinois. Please visit www.getmovingwithkelly.com to search for homes in Lake Zurich or anywhere throughout Northern Illinois.

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