It's Time to Buy

Now, that's a pretty bold statement. And it does come with some qualifications. But doesn't everything in life.

There are definitely times when buying and selling real estate makes good business sense. The circumstances today present a "perfect storm" advantage. To see if you can leverage things to your advantage here are some of our guidelines. Prices in most areas of the country are down, including Salt Lake City. There are bargains to be had. A home that sold two years ago for $970,000 was purchased in November 2009, by one of our customers for $465,000. Not bad. The other important factor in favor of buying now, rates are great. Low interest rates can allow a buyer to get into a higher priced home they could afford a couple of years ago. But the real savings comes in the form of actual dollars saved in monthly payments each month and the total interest expense over the term of the loan.



The market mentality today is interesting. Some truths and perceptions held today include:

• Prices may go lower in the next while
• Sellers will become more desperat to sell later
• Prices are good for buyers
• Some selleres have to sell and are willing to negotiate
  Interest rates may change

While no one has the all magical crystal ball to know what will happen tomorrow the factors present today should be considered advantageous to buyers.

Who should consider buying now?

• First time homebuyers (the government is offering an $8000 tax credit)
• Buyers wanting a larger, more expensive home
• Seasoned investors in it for the long run

While an existing homeowner may want to wait until their property value comes back, any home they may want to buy in the future will likely increase in price. Those buyers should consider selling for less and buying a larger home for less now. Paying interest on an additional $20,000 or $50,000 on a new loan when prices come back does not make sense.

Who should not buy?

People who want to downsize to a smaller less expensive home may want to consider waiting it out to better improve what they can get for their existing home. It's not a good time to sell when you downsize at this time.

Who should sell?

• Sell your existing home only if you are buying a larger more expensive home
• Sell you home if you are facing foreclosure, do a "short sale"
• Sell if you have to sell such as for a job transfer out of state, or liquidate an estate, or you cannot care for the home, etc.

Otherwise, don't sell your home. Unless it makes sense in the example of when to sell, don't sell your home now. Wait it out.