Let's Get Real about Real Estate
Ok, so everyone knows the economy is not so great, mortgage loans are hard to get, and there is a glut of inventory on the market and fewer and fewer qualified buyers. The good news?? Well, interest rates are nice and low. Anything else? Hmmm...it may be time for a bit of "tough love" for buyers and sellers out there. If you are a buyer and are worried about housing prices continuing to fall, one thing to remember is you will never know you are at the bottom of the market until you see it in your rear view mirror. Conversely, if you are a seller you may be upset about the fact that you cannot get as much money for your home as you could have in 2005, or you may not be able to net as much after closing costs and commissions, or it may take your home longer than you would like to sell, or you have to do more updating, buyer concessions and repairs than you would like.
Here is a question for you to contemplate whether you are buying or selling: "Why are you buying/selling your home?" Buyers, are you buying a home to live in or to "flip"? If you are contemplating buying a home to live in, then over time your investment will be a good one, regardless of what the market is doing at this moment. It may take more than 6 months to increase your equity, but in the long term, owning a home is a solid investment choice. Sellers, the issue for you is equity -- during the time you have owned your home, have you ever refinanced or gotten a home equity loan or line of credit? If so, then you have essentially already spent your equity and although this may sting a little, if you think about it in that way, it may make your net a little easier to swallow.
I think the major issue in the housing market on both sides lately is that folks are looking at their homes as a sort of "ATM" account or a stock portfolio. It is time for a mind shift back to thinking of homes as a place to live in, raise your family and enjoy for the long term, not a way to make a quick profit. Once we change our thinking, the real estate market doesn't seem like such a scary place, does it?
Thanks for reading, happy new year to all!
Denise
Here is a question for you to contemplate whether you are buying or selling: "Why are you buying/selling your home?" Buyers, are you buying a home to live in or to "flip"? If you are contemplating buying a home to live in, then over time your investment will be a good one, regardless of what the market is doing at this moment. It may take more than 6 months to increase your equity, but in the long term, owning a home is a solid investment choice. Sellers, the issue for you is equity -- during the time you have owned your home, have you ever refinanced or gotten a home equity loan or line of credit? If so, then you have essentially already spent your equity and although this may sting a little, if you think about it in that way, it may make your net a little easier to swallow.
I think the major issue in the housing market on both sides lately is that folks are looking at their homes as a sort of "ATM" account or a stock portfolio. It is time for a mind shift back to thinking of homes as a place to live in, raise your family and enjoy for the long term, not a way to make a quick profit. Once we change our thinking, the real estate market doesn't seem like such a scary place, does it?
Thanks for reading, happy new year to all!
Denise
Labels: Equity, Eugene Real Estate, Investments
posted by Denise - Eugene's Alternative-REALTORS at
10:51 AM
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