IF YOU CAN KEEP YOUR HEAD WHEN ALL ABOUT YOU ARE LOSING THEIRS AND BLAMING IT ON YOU . . . (Rudyard Kipling)

Well, we had a bubble, we had a crash, we had a partial recovery, and, for now (Spring 2011), U.S. housing prices are starting to come down again.  Should you be buying now or not?  It's a tough decision, BUT NOT AN IMPOSSIBLE ONE.  If you're willing to sit down (I'm always available to help) and crunch the numbers and try different scenarios, you'll end up way ahead of all those folks who've become paralyzed by indecision and waiting for certainty (Good luck with THAT).  Look, nobody's crystal ball is perfectly clear these days (see The Big Picture), but this may be an unprecedented buying opportunity with housing prices and interest rates both way down.  But you need to do your homework!
Here's what I mean . . .

 

Are you buying a home or an investment?  Let's say you want a house to live in.  How long do you expect to be in it?  Short term?  That's a no-brainer.  Prices are going down; you'll probably lose money.  Go rent something.  Longer term?  Now you have compare buying vs renting [ Rent vs Buy ].  Go to the Amortization Tables [ Mortgage Calculator ] and check out the payments at today's interest rates and see what happens when the rates go up, compare mortgage costs with comparable rentals, and then come in and see me to see what housing prices in the specific area you're interested in are actually doing.  Rent now and buy later?  Possibly, with housing prices trending downward in a lot of markets (including Seattle) and depending on your personal finances, but you need to consider (1) what happens when interest rates go up, and (2) what the Whidbey Island real estate market is doing.  It's not rocket science, but it IS work.  But then, it's also a major INDIVIDUAL financial decision that you should consider carefully, without falling victim to herd mentality and emotion.

Just be sure you have all the information.  That's where I come in.  You want to know which neighborhoods are holding their value . . and which ones are a forest of For Sale signs.  You want to know which sellers are motivated to sell . . and why!   You want to know about schools, crime statistics, covenants and deed restrictions, environmental considerations, and so forth. You want to know how much of a mortgage you qualify for.

Investing?  Good idea.  Prices are down, sellers are motivated and interest rates are going nowhere but up.  But is it time to pull the trigger?  Once again, it depends on your individual situation.  1031 exchange?  Rental property or raw land?  If it's undeveloped, are you building or just bargain-hunting?  Buying with cash or borrowed money?  If it's cash, then there's no hurry.  Come on in and let me show you what's available in your price range, and we can focus in on the type of property you're interested.  Then we sit back, monitor the market and wait for that perfect opportunity.  Getting a mortgage?  Again, you need to shop interest rates (they'll be about 1% higher for non-owner-occupied), use the Amortization Tables to check out what happens if you wait too long and they continue to rise (ask your banker what the predictions are for later this year), get an idea as to what kind of rent you can charge (if it's a rental property), and then let me show you some properties.  And I make a pretty good sounding board.

 

But remember this:  If you're buying a house or piece of property on your own, the sellers' realtor is THEIR representative, NOT an impartial expert looking after both sides, and he or she is legally bound to protect the SELLERS and get them the best possible deal.  Without a realtor, you're on your own!  If you feel like that's a bit of a scare tactic, fair enough, but consider this:  I'm licensed and insured. If you screw up or miss something along the way that ends up costing you a bunch of money (like failing to have something inspected that turns out to be broken, or not finding out about a restrictive covenant), there's no recourse.  If I'm representing you and its MY bad, I carry insurance to make it right.  But just so you know, I've never had a claim filed against me.

 

Most of all, I make it a point to tell my clients I'm never too busy for you. I won't abandon you as soon as the offer is signed and then sit back and wait to collect my commission. I've bought and sold a fair number of homes myself, and I know it's an anxious time.  I make it a point to stay in touch, to keep everyone in the loop, and to be there, to answer questions, to deal with problems.   And if you just want to talk, or vent, or need a little reassurance, I'll be there for you as well. That's how I see my job, and that's why many of my clients are still personal friends, and why they're happy to recommend me to others.